RFP New Enchanced Global Fixed Income 200809021727402 by vr57AkwA

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									Document 7

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   Request for Service Proposal for 2008 Second Overseas
Discretionary Investment of Labor Pension Fund (New System)

                Enhanced Global Fixed Income




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    The Labor Pension Fund Supervisory Committee
                       (“LPSC”)
                 RFP for Selection of
   Enhanced Global Fixed Income Investment Manager

 In the case of inconsistency exists between this RFP and the Investment Management
           Agreement, the Investment Management Agreement shall prevail.


Information Collection Form to be completed by candidates
We are currently seeking to appoint two Enhanced Global Fixed Income investment
manager. To be included in our consideration, please complete the tables below
(Sections B to D). Please endeavour to keep responses accurate and concise, abiding
by the word limits specified in the questions (where relevant).
It would be appreciated if you can complete this document and reply in conjunction with
other application documentations prior to the application deadline as specified in the
Application Guidelines. Soft copy submission is required.
Section A – The Mandate
Mandate Profile

                              Outperform benchmark return by 0.5% p.a. (net of all
 Performance Target
                               fees and taxes)
                              Tracking error: at/below 1.5% p.a. against benchmark
 Risk target
                               returns
 Vehicle                      Segregated portfolio


Mandate Benchmark

 Asset Class               Strategic Allocation (%)       Proposed Benchmark Index
 Enhanced Global Fixed                                        Lehman Brother Global
                                       100
       Income                                                 Aggregated Bond Index


Proposed Product

 Proposed Product             <for completion by candidate>

For further detailed investment guidelines and restrictions, please refer to separate
document entitled ‘Investment Guidelines for 2008 Second Overseas Discretionary
Investment Guidelines for Labor Pension Fund (New System).




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Section B – Specific Areas of Focus and Requirements

[Insert Manager Name]
        Please explain why the LPSC should appoint your organisation to manage the
B.1     stated mandate in section A, in preference to your competitors? (less than 100
        words)
Ans
        Please highlight the key changes and developments to your team responsible
B.2
        for your proposed product in the past 36 months). (less than 100 words)
Ans
        How long has your current investment team responsible for the proposed
        product been in place? And how long has the key individual(s) been with the
B.3
        team? To what extent has your performance record shown in Section D
        (please see Section D) been produced by the current investment team?
Ans
        Please highlight how you can demonstrate your commitment to the Taiwanese
B.4     market and will be able to provide a satisfactory level of client servicing if
        selected by the LPSC. (less than 100 words)
Ans
        Please discuss how you are able to absorb new business, ensuring that the
B.5
        interests of existing clients are not compromised.
Ans
        1. For the 3 years ending the date which this RFP is submitted, has your
        organization breached any related regulation; involved in any penalty case by
        the regulatory authority; been named as a defendant in various legal
        proceedings (including those with clients); has received subpoenas in
        connection with government investigations or involved in the seek of
B.6     compensation arising in the ordinary course of business? If yes, please
        provide details.
        2. Please also provide details in relation to any major loss/ write-offs of your
        organisation over the past 1 year.
        3. Please provide any latest developments related to the above to the LPSC
        during the evaluation process.
Ans
        Are these legal proceedings or investigations expected to have a material
B.7     adverse impact on your financial condition or your ability to perform the service
        proposed?
Ans
       Are there any notices to be given to prospective clients by the investment
       managers, required by your financial (securities) supervisory body? If yes,
       please provide (if no, please skip this question):
       (a) The name of the supervisory body
B.8
       (b) Important points in the notice (The related notice, including Chinese
       translation, will be delivered to the LPSC after signing the contract. The notice
       should not be inconsistent with the guidelines of this mandate. When
       inconsistencies exist, the guidelines of this mandate shall prevail)

                                            3
Ans
      How do you propose to notify the LPSC on changes to your team?
B.9
      (Communicate beforehand / notify beforehand / notify after fact)
Ans




                                        4
Section C – Data Collection Tables

                        <Insert Manager Name>
C.1 Proposed                               Worldwide               For clients in Taiwan
product’s AUM and                      AUM                         AUM
                                                No. of clients                 No. of clients
number of clients                    (US$ bn)                    (US$ bn)
(as at end of year)     2003
                        2004
                        2005
                        2006
                        2007
                        Up to 30
                        June 2008
C.2 Firmwide                                                          Total AUM for
                                      Firm/group’s total AUM
AUM, and for                                                        Institutional clients
institutional clients                                              AUM         No. of clients
                                             (US$ bn)
                                                                 (US$ bn)
                        2003
                        2004
                        2005
                        2006
                        2007
                        Up to 30
                        June 2008
C.3 Proposed                                 Worldwide              For clients in Taiwan
product assets                      Asset gain    Asset loss     Asset gain       Asset loss
gained and lost                       (US$)          (US$)         (US$)            (US$)
                        2003
                        2004
                        2005
                        2006
                        2007
                        Up to 30
                        June 2008
C.4 Total assets                             Worldwide              For clients in Taiwan
(total AUM for all                  Asset gain    Asset loss     Asset gain       Asset loss
mandates) gained                      (US$)          (US$)         (US$)            (US$)
and lost over the       2003
years                   2004
                        2005
                        2006
                        2007
                        Up to 30
                        June 2008



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C.5 Revenue                                                       % contribution to the whole
                                      Revenue in the year
relating to asset                                                      group or parent
management            2003
business, and         2004
contribution to the   2005
group/parent          2006
                      2007
                      Up to 30
                      June 2008
C.6 Profit of asset                                               % contribution to the whole
                                       Profit in the year
management                                                             group or parent
business, and         2003
contribution to the   2004
group / parent        2005
                      2006
                      2007
                      Up to 30
                      June 2008
C.7 Details and %     Descriptions:
of employee
ownership of the                                      % of employee ownership
firm (as at end of    2003
month / year)         2004
                      2005
                      2006
                      2007
                      Up to 30
                      June 2008




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C.8 Total number                                               Avg. Yrs. of
                                                                                            Avg. Yrs of Experience
                                                                                                                      No. of
                                                                                                                                Avg. Yrs of Experience
                                                                Experience                                            Other                              Total no.
of investment                                    No. of
                                                             With         With
                                                                                  No. of
                                                                                              With         With
                                                                                                                      Investm
                                                                                                                                  With         With         of
                                                Portfolio                        Research
             1
professionals and                               Manager
                                                            Industry      Firm
                                                                                 Analysts
                                                                                            Industry       Firm
                                                                                                                        ent
                                                                                                                                Industry       Firm      Profess-
                                                                                                                      Profes-                             ionals
average years of                                                                                                      sionals

experience                       2003
                                 2004
                                 2005
                                 2006
                                 2007
                                 Up to
                                 30
                                 June
                                 2008
C.9 Total number                                               Avg. Yrs. of
                                                                                            Avg. Yrs of Experience
                                                                                                                      No. of
                                                                                                                                Avg. Yrs of Experience
                                                                Experience                                            Other                              Total no.
of investment                                    No. of
                                                             With         With
                                                                                  No. of
                                                                                              With         With
                                                                                                                      Investm
                                                                                                                                  With         With         of
                                                Portfolio                        Research
professionals                                   Manager
                                                            Industry      Firm
                                                                                 Analysts
                                                                                            Industry       Firm
                                                                                                                        ent
                                                                                                                                Industry       Firm      Profess-
                                                                                                                      Profes-                             ionals
related to the                                                                                                        sionals

proposed product                 2003
                                 2004
                                 2005
                                 2006
                                 2007
                                 Up to
                                 30
                                 June
                                 2008
C.10 Name of the                 <Please provide brief cvs for the key people involved in the proposed
key professionals of             product>
the proposed
product for this
client and their role
C.11 Turnover for                                               Number of Joiners                                    Number of Leavers
all professionals                2003
No. of joiners                   2004
No. of leavers
                                 2005
                                 2006
                                 2007
                                 Up to 30
                                 June 2008




1
    Investment Professional is defined as any employees who are involved directly with or indirectly with the investment of the assets,
     i.e. including e.g. CIO, fund managers, analysts, economists, but excluding e.g. trader, dealer, back room staff and secretaries.


                                                                          7
C.12 Turnover of                  Number of Joiners   Number of Leavers
professionals         2003
related to the        2004
proposed product
                      2005
No. of joiners
                      2006
No. of leavers
                      2007
                      Up to 30
                      June 2008
C.13 Name of
those key
departures and role
C.14 Remuneration
Structure
- Bonus as % of
total compensation
- Paid in the form
of
- Lock-up period or
defer benefits
- Deferred
Compensation
C.15 Basis of
discretionary bonus
(e.g. what % is
related to
investment
performance, team
based or individual
based, etc) and the
funding source




                                      8
C.16 General
Descriptions
Investment
philosophy
Major source of
value added (In
less than 200
words)
If available, please
provide
supplementary
research paper or
report about how
the philosophy or
models utilised
were arrived.
Please provide only
one hard copy of
the information and
10 CDs with the
information stored.
C.17 Asset
Allocation Process
(In less than 200
words)
C.18 Security
Research Process
(In less than 200
words)
C.19 Portfolio
Construction
Process
Please explain
strategies used,
and articulate the
interaction between
the fund managers
and the analysts on
how ideas are
brought into the
portfolio. (In less
than 200 words)




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C.20 If applicable,
please explain your
rebalancing
mechanism to
replicate index
while achieving
additional value-
add (In less than
200 words)
C.21 Any
changes to the
process over the
past 3 years (In
less than 100
words)
C.22 Capacity
management
What is the
expected capacity
given current
resources with the
firm and the key
manager(s) for this
mandate?
Is there a
mechanism in
place to protect
existing clients? (In
less than 100
words)




                        10
C.23 Risk
Management
Process
Please briefly
describe the
following internal
control and auditing
procedures:
- Performance
evaluation
- Self regulating
and ethics
- Management of
conflict of interest
(including firewalls
and confidentiality,
etc)
- Risk control in
trading process
(including the
standard and
principles of
selecting brokers,
principle of trade
allocation, whether
collective trade
exists, etc)
- Operational
control
- Internal auditing
and monitoring
system




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C24. Does the use of
  derivatives by your
  firm during
  transaction process
  or related risk
  management
  mechanisms comply
  with domestic
  regulations? Could
  you please explain
  the internal control
  and internal audit
  mechanisms that
  your company has in
  place for the use of
  derivatives? Please
  include the following
  aspects in your
  explanation.
- The transaction
  process of
  derivatives
  (transaction process
  should include
  transaction analysis,
  transaction decision
  making, transaction
  execution and
  transaction
  evaluation etc.)
- The risk controls
  in place for
  the derivatives
  transactions
- Are the segregated
  responsibilities of
  related people in
  derivatives
  transactions and its
  outsourcing be cover
  ed by your internal
  audit and internal
  control
- Expected
  derivatives to be
  used in the
  proposed product
- If the derivatives are
  used for non-
  hedging purposes,
  could you please
  indicate their
  expected stop loss
  limit



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C.25 Average
portfolio turnover
(please specify the
definition behind the
calculation)
C.26 Primary
servicing contact e-
mail address,
telephone no and
location in Taiwan
C.27 Lead and
back-up portfolio
manager and location
C.28 Location of
investment office
C.29 Your proposed
fee should be provided
in the separate
document and should
not be included in this
RFP
document. Please
state other fees (if
there are any, e.g.
custodian,
administration etc.)
here if they are not
covered in the
separate fee proposal
document. If you
expect to utilize fund
certificate(s) within the
portfolio, please also
state all the relevant
charges. Please
confirm that you would
derive no other
remuneration (other
than those listed) from
this portfolio.




                            13
 C.30 Reporting
 Capability (Please
 refer to the reporting
 requirements in the
 Investment
 Management
 Agreement and
 indicate whether you
 can meet these
 requirements)
 C.31 Typical and
 Proposed Target Risk
 (Tracking error, pa) of
 the proposed product
 C.32 Typical and
 Proposed Target
 Performance (%, pa)
 of the proposed
 product

C.33 Typical      Credit rating    % of fund    No of issues   Duration      % of fund   No of issues
Portfolio
characteristics
(as at 30 June
2008)

(Please           AAA                                          < 2 years
specify which     AA                                           2- 5 years
index’s           A                                            5-10 years
definition is     BBB                                          10-15 years
used)             Others                                       > 15 years
                  Total                                        Total
 C.34 Please provide the          Sources of value attribution                             %
 value attribution                Tracking index/ market exposure
 breakdown of your                Active sector/ country selection
 portfolio based on last 3        Active issue selection
 years’ performance up to         Active currency selection
 end June 2008. Please            Active yield curve positioning
 try your best to confine to      Active credit selection
 the categories provided          Hedging
 and add additional
 categories only when
 needed.




                                                   14
 C. 35 Please provide the     Sources of value attribution                    %
 expected value attribution   Tracking index/ market exposure
 based on your process.       Active sector/ country selection
 Please try your best to      Active issue selection
 confine to the categories    Active currency selection
 provided and add             Active yield curve positioning
 additional categories only   Active credit selection
 when needed.                 Hedging

Section D – Quarterly Performance Data

Please provide 10 years (or as long as it is available, up to 30 June 2008) quarterly
composite returns both gross and net of all fees (including net of investment
management fee and related tax etc) in US dollar terms and the corresponding
benchmark returns according to the proposed product composition in the Excel
spreadsheet provided separately. (Please also provide performance of relevant product
if the performance listing for the proposed current product is too short)

In providing the composite returns, please describe the methodology behind.

Where possible, the performance calculation and presentation should abide by the GIPS
or AIMR-PPS standard provided by CFA Institute. Please clearly state whether the
performance figures provided comply with the GIPS or AIMR-PPS.

Thank you, this is the end of the Information Collection Form - please provide the
contact details of the person who completed this form for enquiry purpose.

Name:

Tel:

Email:




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