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					SAN DIEGO CITY EMPLOYEES' RETIREMENT SYSTEM



      REQUEST FOR PROPOSAL (RFP) FOR



      GENERAL INVESTMENT CONSULTANT
SAN DIEGO CITY EMPLOYEES’ RETIREMENT SYSTEM
GENERAL INVESTMENT CONSULTANT RFP
JANUARY 2010
                          Table of Contents

I.    Introduction....................................................................................................................... 1
II.   Purpose and Requested Services ................................................................................... 1
      Policy Duties: ...................................................................................................................... 1
      Asset Allocation and Portfolio Duties: ................................................................................. 2
      Investment Manager Oversight and Duties: ........................................................................ 2
      Performance Measurement Duties:..................................................................................... 2
      Training, Education and Client Service Duties: ................................................................... 3
III. Proposal Participation, Completion and Submission Procedures ................................ 3
      A.    Mandatory Requirements Certification and Minimum Requirements ............................ 3
      B.    Confidentiality .............................................................................................................. 4
      C. Intention to Participate ................................................................................................. 4
      D. RFP Submission .......................................................................................................... 4
      E.    Number of Copies of the Response ............................................................................. 5
IV. Proposal Evaluation Criteria ............................................................................................ 6
V.    Insurance Requirements .................................................................................................. 6
VI. Search Schedule ............................................................................................................... 7
VII. Technical Proposal ........................................................................................................... 8
      A.    Organization ................................................................................................................ 8
      B.    Assets Advised ...........................................................................................................11
      C. Investment Consulting Philosophy and Process..........................................................12
      D. Manager Measurement and Evaluation.......................................................................13
      E.    Research ....................................................................................................................13
      F.    Manager Searches and Evaluation .............................................................................14
      G. Other Information ........................................................................................................14
      H. Fee Proposal ..............................................................................................................15
ATTACHMENT A .....................................................................................................................16
ATTACHMENT B .....................................................................................................................17
ATTACHMENT C .....................................................................................................................18
ATTACHMENT D .....................................................................................................................19
ATTACHMENT E ......................................................................................................................20
ATTACHMENT F ......................................................................................................................21
ATTACHMENT G .....................................................................................................................22
I.    Introduction

      The San Diego City Employees’ Retirement System (“SDCERS”) is a Retirement
      System Trust Fund for the employees of the City of San Diego, the Unified Port District,
      and the San Diego County Regional Airport Authority.

      The Board of Administration (Board) establishes policies and objectives for SDCERS.
      SDCERS’ staff is responsible for the daily operations involving the administration of
      benefits, accounting functions, and, with the assistance of its investment consultant,
      management of the investments for the fund.

      SDCERS was established in 1927 by the City of San Diego. In accordance with the
      California State Constitution Article XVI, Section 17, the San Diego City Charter Article
      IX Sections 141-148.1 and Article X Section 1 and the San Diego Municipal Code
      Sections 24.0100 et seq., SDCERS administers retirement benefits, health insurance,
      disability, and death benefits to its members and their beneficiaries.

II.   Purpose and Requested Services

      SDCERS is seeking a qualified firm with substantial public fund experience to provide
      comprehensive pension fund investment consulting services. The selected investment
      consulting firm will report to the Board, through staff. The selected Consultant will work
      closely with the Investment Committee and/or the Board of Administration, if necessary,
      and staff. The firm will serve in a fiduciary capacity and will acknowledge in writing the
      firm’s fiduciary status, without qualification. In all cases, the firm and its consultants will
      offer advice to SDCERS solely in the interest of the plan participants and the
      beneficiaries of SDCERS.

      The selected consulting firm is expected to provide the following services:

         Policy Duties:
          Provide recommendations concerning long-term investment policy and
            investment objectives and strategy.
          Provide recommendations regarding investment guidelines and procedures.
          Provide recommendations regarding proxy voting policies and procedures.
          Provide recommendations concerning risk management strategies.
          Provide compliance monitoring.
          Advise on rebalancing policies.




      SDCERS General Investment Consultant RFP – January 2010                                      1
   Asset Allocation and Portfolio Duties:
    Conduct an annual asset allocation review. (Schedule of Investment Managers is
      attached – See Attachment A)
    Conduct an asset/liability study at least every 3 years.
    Conduct a manager structure review at least every year.
    Provide asset class research, analysis and recommendations.
    Provide an annual Investment Policy Statement review.
    Provide access to analytical software and tools.
    Provide recommendations concerning securities lending strategies.
    Provide compliance monitoring of the securities lending program.
    Provide recommendations concerning custodial arrangements.
    Provide investment vendor fee negotiation services as needed.
    Provide recommendations concerning brokerage issues, including directed
      brokerage, commission recapture, and low transaction cost trading strategies.
    Provide an annual brokerage commission trading cost analysis.


   Investment Manager Oversight and Duties:
    Provide ongoing monitoring of institutional investment managers.
    Provide research and analysis of SDCERS’ investment managers.
    Provide investment manager selection services and recommendations.
    Provide investment manager compliance monitoring.
    Provide investment manager compliance with CFA Institute guidelines.
    Provide recommendations concerning investment manager allocation and
      structure, manager guidelines and benchmark identification.


   Performance Measurement Duties:
    Evaluate total portfolio investment performance to custom policy benchmark.
    Evaluate investment manager performance to policy benchmarks and
      appropriate peer groups.
    Provide quarterly performance measurement reporting.
    Provide quarterly performance review and commentary to the Investment
      Committee and/or Board, if necessary.
    Provide benchmark evaluation, implementation and analysis.
    Provide access to analytical software, if any.
    Provide review of portfolio risk.




SDCERS General Investment Consultant RFP – January 2010                           2
          Training, Education and Client Service Duties:
           Attend Investment Committee and/or Board meetings and any other meetings as
             necessary. (Schedule is attached – See Attachment B)
           Coordinate effectively with specialty consulting firms (Real Estate, Private
             Equity).
           Provide investment education and training to staff and the Board as needed.
           Provide assistance on special projects as needed.
           Participate in ad hoc workshops on specific issues designated by the Board.
           Communicate regularly with staff about workflow and any other operational
             issues between meetings.
           Develop educational materials.
           Respond to inquiries in an appropriate and timely manner.
           Share all firm research, including white papers, and provide access to research
             staff.
           Make no changes in the assigned consultant team without the explicit approval of
             SDCERS.



III.   Proposal Participation, Completion and Submission Procedures

          A. Mandatory Requirements Certification and Minimum Requirements
             SDCERS will accept proposals from firms that meet the minimum requirements
             listed below. The proposing firm should complete the Mandatory Requirements
             Certification (attached as Attachment C) and submit it with the cover letter.
              1. The investment consulting firm must be a registered advisor under the
                 Investment Company Act of 1940.

              2. The investment consulting firm must have provided for at least five (5) years
                 as of December 31, 2009, investment consulting services comparable to the
                 duties contained in this RFP to at least three (3) defined benefit public
                 retirement systems, each of which must have had at least $3 billion in current
                 assets.

              3. The investment consulting firm must be able to maintain a satisfactory data
                 processing interface with SDCERS’ custodian, State Street Bank, on-line
                 connection or other electronic means, at the firm’s expense, for the purposes
                 of compiling all required reviews and reports.

              4. The investment consulting firm must agree to disclose all potential, current
                 conflicts of interest as well as potential conflicts as they might occur, and
                 annually disclose all sources of revenue from sources and affiliations other
       SDCERS General Investment Consultant RFP – January 2010                               3
          than investment consulting. The investment consulting firm agrees to abide
          by SDCERS’ Vendor’s Conflict of Interest policy, attached as Attachment F.

       5. The individual assigned to SDCERS as the primary consultant, as of
          December 31, 2009, must have a minimum of ten total years experience in
          the public/private defined benefit pension fund area.

       6. The investment consulting firm must be directly responsible for the
          management of the account, and all personnel responsible for working on the
          account must be employees of the firm.

       7. The investment consulting firm must not have, nor potentially have, a material
          conflict of interest to include, but not limited to: SDCERS’ Board, staff,
          actuary, auditor, investment managers, or other consultants.

       8. The investment consulting firm must carry Errors and Omissions coverage
          and other insurance coverage as discussed in Section V. Insurance
          Requirements.

       9. All minimum qualifications must be met by December 31, 2009.


PLEASE COMPLETE THE MANDATORY REQUIREMENTS CERTIFICATION.
(Schedule is attached – See Attachment C) This should be attached to the cover letter.

   B. Confidentiality
      Information presented in this RFP, including all subsequently disclosed
      information about SDCERS during the proposal process, is intended only for use
      in responding the this RFP and not for public disclosure.

   C. Intention to Participate
      If you intend to reply to the RFP, please send please send Ms. Liza Crisafi an e-
      mail (ecrisafi@sdcers.org), attaching a letter that your organization will be
      replying to the RFP. If you have any questions, please e-mail Ms. Crisafi.

   D. RFP Submission
      Please complete all questions in the order that they are presented in the
      Technical Proposal section of this RFP. Preface each response with the section
      number, questions numbers and text of the question. Any additional comments or
      information may be provided as an Appendix.

       The individual who is authorized to bind the investment consulting firm (hence,
       “Proposer”) contractually must sign a cover letter, which must accompany the
       firm’s RFP response. This cover letter must indicate the signer is so authorized
SDCERS General Investment Consultant RFP – January 2010                                  4
       and must indicate the title or position that the signer holds in the Proposer’s firm.
       An unsigned cover letter shall cause the proposal to be rejected. The cover
       letter must contain a statement that the firm acknowledges that all documents
       submitted pursuant to this request for proposal process will become a matter of
       public record. The letter must also contain the following:

       1. The Proposer’s name, address, e-mail, telephone, and facsimile number.
       2. The Proposer’s Federal Employer Identification Number and Corporate
          Identification Number, if applicable.
       3. The name, title or position, and telephone number of the individual signing the
          cover letter.
       4. A statement indicating the signature is authorized to bind the Proposer
          contractually.
       5. The name, title or position, and telephone number of the primary contact
          and/or account administrator, if different from the individual signing the cover
          letter.
       6. A statement to the effect that the proposal is a firm and irrevocable offer,
          good for 120 days. Please attach a Fee Proposal as Exhibit L of your RFP
          response (A sample is provided as Attachment E).
       7. A statement expressing the Proposer’s willingness to perform the services as
          described in this RFP.
       8. A statement expressing the Proposer’s availability of staff and other required
          resources for performing all services and providing all deliverables within the
          specified time frames as described in the RFP.

   E. Number of Copies of the Response

       The response should be labeled “2010 SDCERS General Investment
       Consultant Search.” Please submit one (1) full and complete electronic copy
       (in PDF readable format) via e-mail, ten (10) complete hard copy sets, and
       three (3) DVD/CD ROMS in PDF format of the proposal to:

              Liza Crisafi, Chief Investment Officer
              San Diego City Employees’ Retirement System
              401 West A Street, Suite 400
              San Diego, CA 92101-7991
              sdcersinvestments@sdcers.org

       The deadline for submission of the firm’s proposal is February 19, 2010 at 5:00
       pm (PST). All materials must be received in SDCERS’ office at that time.




SDCERS General Investment Consultant RFP – January 2010                                   5
IV.   Proposal Evaluation Criteria

      SDCERS will determine the specific methodology and criteria by which submitted
      proposals will be evaluated. Selection of finalists and determinations of compliance with
      the minimum qualifications is solely and exclusively within the judgment of SDCERS
      and may be made solely on the basis of SDCERS’ evaluation of a candidate’s
      suitability.

      The following is a summary of the general considerations that will be used to determine
      the firms that will be selected as finalists:

                Understanding of SDCERS and Ability to Deliver Services in a Timely Manner
                Independence and Objectivity of Investment Advice
                Firm Experience and Client Relevant Experience
                Analytical Tools, Research and Process
                Firm Personnel and Proposed Consultant Team
                Client and Industry Feedback
                Fee Schedule

      Fees and compensation will be an important factor in the evaluation of investment
      consulting proposals. However, SDCERS is not required to choose the lowest cost
      bidder. SDCERS will select the firm that, in the Board’s sole discretion, best serves the
      overall needs of the plan participants and beneficiaries.



V.    Insurance Requirements

      The selected firm shall provide evidence of Professional Liability insurance with
      contractual liability coverage covering the Contractor’s liability arising from errors and
      omissions made directly or indirectly during the duration of the contract. The selected
      firm shall provide coverage for the total limits actually arranged by the selected firm but
      not less than $5 million combined single limit.

      The selected firm shall maintain a Fidelity Bond covering employee dishonesty, in an
      amount arranged by the selected firm, but not less than $10 million, per occurrence. In
      addition, the selected firm shall maintain workers compensation coverage.




      SDCERS General Investment Consultant RFP – January 2010                                  6
VI.   Search Schedule

             January 25, 2010                   RFP distributed

             February 19, 2010                  Deadline for submission of proposals

             March 1, 2010                      Determination of semi-finalists

             March 8 -10, 2010                  Semi-finalist in-house interviews

             March 15 – 26, 2010                Due diligence visits

             April 2, 2010                      Finalist presentation    materials   for   Board
                                                meeting due

             April 15, 2010                     Finalist presentations to Investment Committee

             April 16, 2010                     Ratification of finalist selection at full Board
                                                Meeting




      SDCERS General Investment Consultant RFP – January 2010                                  7
VII.   Technical Proposal
       Please be as clear, accurate, and complete as possible in your responses. Providing
       incomplete or misleading data may lead to disqualification of the proposal and
       elimination of the firm from the search process.

       A. Organization

          1.   Please provide a brief history of the firm including the year organized, the year
               the firm began providing investment consulting services to U.S. tax-exempt
               clients, and the nature of the firm’s ownership (including any changes in the last
               five years) and specific details with regard to any affiliated companies or joint
               ventures.

          2.   Does your organization receive revenue from investment management firms?
               Revenues within this request would include, among others, strategic consulting
               fees, conference fees, education fees, or fees from research including
               databases. Please identify the percent of the firm’s total revenues that is
               derived from investment management firms.

          3.   Provide the percentage of total firm revenues that came from the categories
               listed below for each year:


                                                           2008   2007   2006
                             Consulting to Plan Sponsors      %      %      %
                             Money Management Activities      %      %      %
                             Services to Money Managers       %      %      %
                             Other (Please describe)          %      %      %
                                                           100%   100%   100%


          4.   Please list the total number of firm professionals, broken down by consultants,
               research professionals, and staff.

          5.   Please provide the location and function of each of your firm’s offices, including
               the number of professionals at each office and what services are provided by
               each office.

          6.   Please indicate which office would service this account, the names of the team
               members who would be assigned to this account and their contact information.
               Attach as Exhibit A biographies for these team members.




       SDCERS General Investment Consultant RFP – January 2010                                  8
   7.   Complete the following table as it pertains to the team who would be assigned
        to this account:


    Average number of years of     Average number of      Number of years consulting
    general consulting             years tenure with      professionals have worked
    experience:                    your firm:             together as a team:




   8.   Please provide details on the financial condition of your firm. Most recent
        reports filed (for the last two years) with the SEC will be acceptable, but any
        recent material changes should be included.

   9.   Are you registered with the SEC or a state securities regulator as an investment
        adviser? If so, provide as Exhibit B all disclosures required under those laws
        (including Part I and II of Form ADV).

   10. Has your firm ever been censured by the SEC or any regulatory body? If so,
       please describe.

   11. Has your firm been subject to or is currently being reviewed/audited by the SEC
       or other regulatory agencies. If yes, please describe the nature of the
       investigation.

   12. Over the last five (5) year has the firm, the Primary Consultant, or another
       principal or officer of the firm been involved in any business litigation,
       regulatory, or other legal proceedings or government investigation involving
       allegations of fraud, negligence, criminal activity or breach of fiduciary duty? If
       so, please describe.

   13. Will your firm acknowledge fiduciary status and accept fiduciary responsibility
       for recommendations to SDCERS?

   14. State whether or not the employees comply with the Code of Ethics and
       Standards of Professional Conduct of the CFA Institute. If not, does your firm
       maintain a code of ethics? Attach as Exhibit C a copy of the firm’s Code of
       Ethics.




SDCERS General Investment Consultant RFP – January 2010                                  9
   15. List the dollar amounts of fiduciary liability insurance, errors and omissions
       insurance and bonding insurance carried by your firm, as follows:


    Insurance carrier providing
    coverage                                 Type of coverage      Dollar amount




   16. Please discuss the overall business objectives of your firm with respect to
       future growth. Comment on any present or planned areas of emphasis over the
       near future. Be sure to include in your response:

            a.   Total assets or client relationships that will be accepted.
            b.   Maximum limits on asset amounts or number of clients per consultant.
            c.   Plans to develop and expand resources, merge or acquire other firms,
                 spin off subsidiaries.

   17. Complete the following table regarding consulting staff who left or joined your
       firm within the last three (3) years. Include anticipated personnel changes for
       the next year.

                          Date terminated
    Name and title            or hired      Reason

    Left:




    Joined:




SDCERS General Investment Consultant RFP – January 2010                             10
   18. Briefly describe your firm’s compensation system for principal staff, and indicate
       what specific incentives are utilized to ensure key professionals do not leave
       the firm either as a group or individually. How does the firm tie client
       performance and satisfaction to a consultant’s performance?

   19. Describe your firm’s disaster recovery plan.

B. Assets Advised

   1.   Complete the following table by providing the number of clients, assets under
        advisement for the firm’s full-service retainer investment consulting
        relationships and the number of clients that have renewed their contract with
        your firm over each of the last three years. Please provide the data as of
        December 31 for all years.

                                              2009        2008       2007
        Number of Clients
        Assets under Advisement
        Number of Clients to Renew Contract



   2.   Provide as Exhibit D a list of the firm’s investment consulting clients as of
        12/31/2009. Please provide a table listing all current clients for whom you
        provide investment consulting services along with the following information:

        a.    Name/Type of client (public plan, corporate plan, endowment, fund of
              hedge funds, etc.)
        b.    Total size of each relationship
        c.    Assets on which you provide consulting services
        d.    Length of service of the relationship
        e.    Brief, one sentence description of the type of services you provide for
              each client
        f.    Nature of the relationship (retainer or project-based)

   3.   Please list all clients your firm has gained in the last three (3) years and the
        clients who have terminated your services during that time. For those who have
        terminated your service, please indicate the reason for terminating service.

   4.   Please provide as Exhibit E the name, address, telephone number and contact
        person for three (3) current clients to serve as a reference for your firm,
        preferably public pension plans.



SDCERS General Investment Consultant RFP – January 2010                               11
C. Investment Consulting Philosophy and Process

   1.   Briefly describe your firm’s philosophy with respect to investment consulting
        mandates, and the nature of the service that you provide. What key strengths
        and competitive advantages does the firm possess that generate superior
        performance and service for your clients?

   2.   Describe your firm’s experience in developing and reviewing investment
        policies and strategies for clients.

   3.   How frequently does the firm recommend reviewing asset allocation, asset
        liability reviews, and manager structure reviews and describe your firm’s
        methodology. Please provide samples of an Asset Allocation Review and
        Asset/Liability Modeling Study as Exhibit F.

   4.   Provide a sample of your firm’s most recent five (5) years of capital market
        assumptions (projected returns, volatilities and corrections) in tabular form as
        Exhibit G.

   5.   What is the range of target allocations which you are currently recommending
        to your public fund clients?

   6.   Describe your firm’s views of active versus passive management.

   7.   Have your firm recommended significant changes to client portfolios due to the
        recent turmoil in the financial markets? If yes, please describe the
        recommendation.

   8.   What level of liquidity do you recommend for a public pension plan?

   9.   How does your firm assess risk in client’s portfolios and what new
        methodologies are being considered?

   10. In your view, how should a client measure its investment consulting firm’s
       performance? How does your firm measure its own performance?




SDCERS General Investment Consultant RFP – January 2010                              12
D. Manager Measurement and Evaluation

   1.   How does your firm monitor and analyze investment performance? Please
        describe any databases used by your firm. How do you determine appropriate
        benchmarks? Please provide a sample performance report as Exhibit H.

   2.   Can the performance reports be customized? Are there charges for additional
        information requests?

   3.   What is the anticipated turnaround time to produce a performance report?

   4.   Describe how your firm obtains data from the client’s Custodian. How does your
        firm verify the accuracy of the data received from the Custodian?

   5.   What is your firm’s step by step process for return reconciliation? How will
        discrepancies be handled?

   6.   What process does your firm use to communicate performance issues with
        investment managers? Please describe your firm’s criteria for recommending
        an investment manager be terminated.

   7.   Do you monitor your success in selecting managers? Explain how you measure
        the level of success of existing managers.

E. Research

   1.   List notable publications that have included your firm’s research.

   2.   Does your firm prepare white papers on relevant investment topics? Please
        provide a sample as Exhibit I.

   3.   Provide a listing of research generated during 2008 and 2009 with Exhibit I.

   4.   Describe in detail the type and frequency of research that would be provided to
        SDCERS. Through what media is it provided? Does the firm provide research
        reports other than those specifically requested by the client? If so, please
        describe. What research and analytical resources (including databases) does
        the firm possess that the firm would be willing to provide SDCERS?




SDCERS General Investment Consultant RFP – January 2010                                13
F. Manager Searches and Evaluation

   1.   Describe in detail your manager database and search process. Include the
        criteria used to make manager recommendations.

   2.   Describe the process how new investment managers are added into your
        database.

   3.   Please provide a sample of investment manager research or due diligence
        reports as Exhibit J.

   4.   How often are on-site due diligence visits conducted with your client’s
        managers?

   5.   Have your most recent manager searches resulted in the same manager being
        selected for multiple clients? Provide results (table format) for the three most
        recent searches for US equities, non-US equities, and fixed income. At a
        minimum, identify the finalist candidates and indicate which firm was selected.

   6.   Provide as Exhibit K a sample of a “finals” report for a recently completed
        public markets search.

   7.   In your firm’s opinion, how many managers should a $4 billion public pension
        plan employ?

   8.   State your willingness to make            specific   investment   hiring   or   firing
        recommendations to your clients.


G. Other Information

   1.   Describe your firm’s capabilities in providing educational opportunities for
        trustees and staff. Does your firm hold an annual investment conference for its
        clients?

   2.   Describe your firm’s experience and ability to support issues relating to
        securities lending, custodial services and commission recapture.

   3.   Describe your custodial bank search process. Please include details such as
        criteria used for evaluating and ranking custodians.



SDCERS General Investment Consultant RFP – January 2010                                    14
   4.   Does your firm maintain an in-house database of custodial banks? In not, from
        what vendor do you purchase the database? How many banks are contained
        in the database? How often are custodial banks in the database reviewed?

   5.   State your firm’s opinion of overlay/derivative strategies and how would you
        recommend a client use them to reduce risk in the portfolio.

   6.   Does your firm have any exposure to Madoff or other fraud related manager
        exposure either directly or indirectly through another fund?


H. Fee Proposal

   1.   Provide a fee proposal as Exhibit L for the services outlined in the Expected
        Service Level Requirements – See Attachment D. A fee proposal template is
        attached - See Attachment E. Please provide fee proposals for:
        a. Full scope of services outlined above.
        b. Manager selection services only.

   2.   Are you willing to guarantee your fees for a specific period of time?

   3.   Are your fees negotiable?

   4.   What other potential costs might be incurred during the term of the contract?




SDCERS General Investment Consultant RFP – January 2010                                 15
                                     ATTACHMENT A




SDCERS General Investment Consultant RFP – January 2010   16
                                         ATTACHMENT B


    SDCERS 2010 Investment Committee and Board Meeting Dates


        Investment Committee                               Board of Administration
               Thursday                                            Friday
       Meeting Begins at 1:30 PM                          Meeting Begins at 8:30 AM
                 January 21                                       January 22
            --------------------------                       --------------------------
                   March 4                                          March 5
                   April 15                                         April 16
                    May 27                                           May 28
            --------------------------                       --------------------------
                     July 8                                           July 9
                  August 19                                        August 20
               September 30                                  --------------------------
            --------------------------                             October 1
                November 4                                       November 5
               December 16                                      December 17




SDCERS General Investment Consultant RFP – January 2010                                   17
                                      ATTACHMENT C


                      MANDATORY REQUIREMENTS CERTIFICATION


The undersigned Proposer hereby represents and warrants to SDCERS as follows:

1.   Proposer is an investment advisor registered under the Investment Advisors Act of 1940.

2.   Proposer has been in business for a minimum of five years.

       Date business commenced: ______________________________________

3.   Proposer provides investment consulting services to at least three public retirement system
     defined benefit clients with assets greater than $5 billion.

       Name(s) of client(s): _______________________________________________

4.   The primary consultant assigned to SDCERS account has a minimum of ten years
     experience providing domestic and international investment consulting services to public
     pension plans.

       Name of the primary consultant: ____________________________________

       Number of years of experience: _____________________________________

5.   The Proposer’s principal place of business is in the United States. Proposer is subject to
     service of process in the United States.

       Location of Proposer’s principal place of business:

6.     If awarded the contract, the Proposer will serve as a "fiduciary" with respect to SDCERS.




PROPOSER'S NAME: __________________________________________________



Signed:                                                              Date:




                          PLEASE RETURN WITH COVER LETTER




SDCERS General Investment Consultant RFP – January 2010                                        18
                                       ATTACHMENT D


                  EXPECTED MINIMUM SERVICE LEVEL REQUIREMENTS




1. Attendance at monthly SDCERS Meetings; Investment Committee and/or Full Board. A
   schedule of Board and Investment Committee meetings is included as Attachment A.


2. Timely delivery of quarterly investment performance reports.


3. Preparation and presentation of an annual Asset Allocation study and annual Manager
   Structure Review.


4. Preparation and presentation of an Asset/Liability Study at least every three (3) years


5. Willingness to take on additional duties (i.e. manager searches, special projects, etc)


6. Presentation and delivery of an annual commentary letter for inclusion in SDCERS’
   Comprehensive Annual Financial Report.


7. Preparation and presentation of an annual commission cost analysis of SDCERS managers.




SDCERS General Investment Consultant RFP – January 2010                                      19
                                         ATTACHMENT E


                                         FEE PROPOSAL


As the term of the contract is expected to be three (3) years with a two (2) one-year extensions
issued at the discretion of SDCERS, the Fee Proposal should be guaranteed for a period of not
less than five (5) years from the effective date of the contract. Proposed fees must include
travel, taxes and all expenses.

Proposer should submit an all inclusive annual fee for all services as follows:


       All inclusive flat fee – year 1                              $ ___________

       All inclusive flat fee – year 2                              $ ___________

       All inclusive flat fee – year 3                              $ ___________

       Sub Total (Years 1-3)                                        $ ___________

       All inclusive flat fee – year 4 (if extension is issued)     $ ___________

       All inclusive flat fee – year 5 (if extension is issued)     $ ___________

       Total Fees (Years 1-5)                                       $ ___________


       Special Project Fees (Manager Searches, etc) per Project $



The final contract fee should represent the only compensation received by the consultant for
services provided to SDCERS. There should not be any other benefit, monetary or otherwise,
that results from this relationship between the consultant and SDCERS.




                               PLEASE RETURN AS EXHIBIT L




SDCERS General Investment Consultant RFP – January 2010                                      20
                                       ATTACHMENT F


                  SAN DIEGO CITY EMPLOYEES’ RETIREMENT SYSTEM

                        VENDOR’S CONFLICT OF INTEREST POLICY



In light of its fiduciary responsibilities to manage the San Diego City Employees Retirement
System (SDCERS), invest the SDCERS Trust Fund, and administer the retirement benefits for
employees of the City of San Diego, the Unified Port District and the San Diego Regional Airport
Authority who participate in SDCERS, the Board of Administration (Board) expects all vendors,
including agents, consultants and investment managers doing business with SDCERS to
conduct themselves with utmost integrity, professionalism and ethical behavior. Conflicts of
interest, real or perceived, must be avoided.

Specifically, when doing business with SDCERS, the Board requires all vendors to:

      Comply with all applicable laws and regulations;
      Conduct all SDCERS business for the sole and exclusive benefit of SDCERS and its
       members and beneficiaries in a fair manner;
      Disclose in writing all financial and personal relationships that may give rise to an actual
       or perceived conflict of interest;
      Disclose in writing any pending litigation against the vendor;
      Disclose in writing the existence of any sanctions imposed by the Securities and
       Exchange Commission or any other governmental agency;
      Provide any policies and procedures in place to mitigate conflicts of interest upon
       request;
      Provide codes of conduct which govern employee activities upon request;
      Provide the highest quality of performance;
      Provide the data, records, invoices, materials, payrolls, records of personnel and media
       relating to all matters covered by Vendor’s Agreement with SDCERS for examination
       and/or audit upon request;
      Maintain data, records, invoices, materials, payrolls, records of personnel and media
       relating to the vendor’s agreement with SDCERS for a period of not less than three
       years following receipt of final payment under the vendor’s agreement with SDCERS
       unless SDCERS agrees in writing to an earlier disposition;
      Maintain professional competence;
      Maintain confidentiality of information the Board designates as confidential;
      Execute annually a written certification by an authorized employee that VENDOR
       conducts a background check of all of its employees and disclose to SDCERS any
       employees who have been accused of conducting or participating in fraudulent or
       criminal conduct
      Execute annually a written certification by an authorized employee that the Vendor is in
       compliance with SDCERS Vendor’s Conflict of Interest Policy




SDCERS General Investment Consultant RFP – January 2010                                          21
                                      ATTACHMENT G

                                      SDCERS
                           Investment Consulting Services
                                Request for Proposal

                               SUBMISSION CHECKLIST


Item                                                                      Included in RFP
                                                                             Response
Cover Letter and Minimum Requirements Certification

Answers to all Questions in Technical Proposal

Exhibit A – Biographies of Proposed Team Members

Exhibit B - Form ADV (Part I & II)

Exhibit C – Copy of Proposing Firm’s Code of Ethics

Exhibit D – List of Current Clients

Exhibit E – Public Fund References

Exhibit F - Copy of Asset Allocation and Asset/Liability Modeling Study

Exhibit G - Five Years of Capital Market Assumptions

Exhibit H – Sample Performance Report

Exhibit I - Sample White Paper/Research Report & List of Research
            Generated in 2008 & 2009

Exhibit J – Sample of Investment Manager Research/Due Diligence Report

Exhibit K – Sample of “Finals” Report for Recent Public Markets Search

Exhibit L – Fee Proposal




SDCERS General Investment Consultant RFP – January 2010                             22

				
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