Investment Advisory Consultant Services

The vendor required to provide investment advisory consultant services to develop, acquire, lease and operate low-rent housing programs.
1. Investment policies, guidelines and implementation
•    Advise the board in connection with the issues related to investments, including but not limited to development of a new investment guidelines and policies, amendment of existing guidelines and policies, and referencing best practices in investment-related guidelines and policies for entities of a similar type to the plan, the board and the plan sponsor.
•    Advise the fund about new developments in investment management techniques and strategies might improve the investment program and provide recommendations, in writing, as to whether such strategies should be implemented.
•    Conduct an annual comprehensive review and analysis of investment policy, objectives, asset allocation benchmarks and portfolio structure, and recommend changes, if appropriate.  
•    Review and update the plan’s investment policy statement on an annual basis and provide an updated investment policy statement within 30 days prior to the October 31st plan year end.
•    Provide advice and recommendations on various other investment policy issues.
•    Provide support as requested to accomplish implementation of such investment policies.
•    Provide advice as requested by the chair of board on rebalancing policies, risk budgeting and risk management, currency overlay and other strategies.
2. Asset allocation and liability studies
•    Work with the plan’s actuary to conduct an asset and liability study of the fund at least on annual basis, to include, but not limited to, formulating methodologies, assumptions, asset classes for consideration, alternative asset allocations and strategic investment policies.
•    Develop an appropriate investment management structure for the system and each asset class that considers the role of active versus passive strategies and investment management styles under different market conditions.
•    Analyze the investment characteristics of available asset classes and the risk and return potential of alternative asset mix policies.
•    Develop written policies, guidelines, and procedures for rebalancing the asset mix.
3. Performance monitoring and reporting
•    Compare the investment performance of the total fund, asset classes and investment managers to relevant benchmarks and “peer group” samples.
•    Provide quarterly written evaluations of the performance of each investment manager, asset class and plan.  
•    The evaluation should include return attribution characteristics, risk analysis, style analysis, peer universe comparison and holding analysis related to benchmarks.  Performance data will be provided by custodian, etc.
•    Review on a monthly basis of all funds held by the various investment managers.  Provide to the board a written report of the analysis, including specific commentary on each investment manager.
•    Conduct performance attribution analysis to determine the value added by investment policy, asset allocation, and security selection.
•    Present performance reports in a format approved by the board on a monthly basis to the board.  
•    The performance reports must include the gross returns and all transaction fees relating to the gross return.  
•    The performance report must provide a fee comparison to comparable funds.
•    Provide a detailed current performance report at least one week in advance of each scheduled board meeting.
•    Recommend appropriate performance benchmarks for the total fund, each asset class, portfolio composite and investment manager.
•    Provide access to performance evaluation and attribution analytics, tools and software.
4. Due diligence for public and private market managers and investment manager oversight.
•    Provide advice and recommendation on investment manager allocation and structure, manager mandates and performance benchmarks.
•    Provide ongoing monitoring and oversight of investment managers to ensure compliance with laws and regulations, investment policies and manager mandates.  
•    Have no less than quarterly discussions with managers on investment performance and organizational issues (such as changes in ownership, staff, new products, etc.).
•    Review trades to make sure the managers are trading appropriate amounts through the commission recapture broker.
•    Monitor fees charged by the broker to make sure that the broker fee is not increased to compensate for any amounts rebated to the board.
•    Advise and provide recommendations on manager retention and termination and assist in developing a formal manager review process.
•    Provide investment manager search and selection services from time to time as requested by the board and make recommendations as necessary.
•    Assist with negotiating appropriate investment management fees and with monitoring and evaluating and evaluating manager trading and transactions costs. 
•    Provide an independent alert to impending economic, market, political, geo-political or other pertinent risks that may affect the plan.
•    Assist in the continuing definition of management style(s) and structure and the accompanying disciplines that will be used in managing securities and portfolio and in developing necessary procedures to ensure that staff can monitor and verify that the styles and disciplines are followed.
5. Client services and education
•    Attend as many as twelve (12) regular on-site monthly meetings of the board, as well as special meetings pertaining to investments that may be necessary from time to time.
•    Prepare and present written quarterly reports on investment performance.  
•    These reports shall include information with respect to fees charged and fee comparisons to comparable funds.
•    Coordinate effectively with the board, legal counsel, agency finance and human resources departments, the custodian bank, prudential retirement services and the investment managers, the transfer of funds amongst the plan’s various investments.
•    Review and analyze current agreement with prudential retirement services to determine whether market conditions favor continuing with the agreement or pursuing other options.  Submit a written report of analysis findings and recommendations to the board within a sixty (60) day period upon signing of the contract.
•    Respond to inquiries from the board between meetings in an appropriate and timely manner.
•    Report in writing any significant changes in your firm’s ownership, organizational structure and personnel within thirty (3) days of such change.
•    Assist on special projects as required by the board from time to time.
•    Assist in the negotiations of agency benefit payment contact(s) with other service providers.
•    Provide all other investment advisory-related services as request by the board.
•    Provide education to the board and staff on investment issues at least once a year in the stat area and participate in ad hoc workshops as requested by the board from time to time.
•    Make available firm research, including proprietary research, and ensure research staff is available to consult with the board members.
•    Maintain regular communications with the board and chair via email or telephone.
•    Within thirty (30) days prior to each October 31st plan year-end provide an annually written report on the state of investment markets, including a review of global financial markets, global geo-political and macroeconomic factions affecting financial markets and detailed relevant public and private fixed income and real estate markets and sector.  
•    Provide information, research and analysis related to emerging investment concepts which may benefit the plan or board.  
•    Provide occasional special research and analysis on questions or issue that may arise.
•    Proactively provide advice and assist the board on its compliance with federal and state statutes, regulations and guidelines as they relate to pension fund investments and provide recommendations on changes to state statutes, regulations and guidelines, as may be applicable.  
•    Prepare a written comprehensive analysis and make recommendations concerning these developments.
•    Provide objective and creative input to the board.
6. Review, selection and search for other investment-related vendors
•    Provide advice and recommendations on custodial arrangements (including custodian search and review services)
•    Assist with evaluation, search and selection involving other investment-related consultants and vendors as required.