General Investment Consultant Services

The Vendor is required to provide o conduct a search for a full-service, retainer-based, non-discretionary, general investment consultant to assist in the continuing evolution and ongoing monitoring of agency total portfolio.
- The general investment consultant will act as a fiduciary to agency and work closely with agency staff, board, and alternative assets and real estate investment consultants.
- Investment Policy and Asset Allocation
•    Provide ongoing advice and technical support in the establishment and refinement of portfolio strategic asset allocation, investment goals, objectives, and policies.
•    Provide asset class analytics to support asset allocation studies to drive the portfolio construction process.
•    In collaboration with agency dedicated alternative assets and real estate consultants, conduct an asset-liability study every three to five years, unless circumstances warrant a more frequent study, and coordinate the results of the study with agency actuary. The asset-liability study should incorporate the following factors including, but not limited to: (1) historical and expected long-term capital market assumptions to assess the volatility, return, and correlation behavior of asset classes; (2) a projection of actuarial assets and liabilities to determine the current and projected funding status; (3) a projection of future benefit payments and contributions to gauge the portfolio’s required liquidity; (4) an assessment of the liabilities to understand their relationship to the portfolio and the expected variability of funding status; and (5) an assessment of potential economic scenarios, including inflation and interest rate levels, and policy scenarios to evaluate the expected impact on fund performance. Based on the results of the asset-liability analysis, generate multiple asset allocation options, and recommend a strategic asset allocation that diversifies the total fund across various economic environments and risk factors. Analyze and recommend asset class structures and investments within the defined policy targets and ranges for the major asset classes. 
•    Assist agency Investment Team with investment research, strategic investment decisions, and portfolio construction. This would include topics such as new investment strategies, investment styles, and active versus passive investments, benchmark risk, rebalancing strategies, overlay strategies, and industry trends.
- Risk Management
•    Provide risk management services, including development of portfolio-level risk mitigation, risk offset, or risk-balancing strategies.
•    Provide Board-level risk reports and present them quarterly.
•    Monitor changes in capital markets, economic conditions, and other relevant factors on an ongoing basis to assess their impact on the agency portfolio.
•    Assist agency in conducting a liquidity analysis on an annual basis by evaluating agency cash inflows and outflows to determine if agency has a sufficient liquidity profile to make benefit payment obligations and support its private markets allocation.
- Public Equity and Credit Investment Manager Search and Due Diligence
•    Provide manager profiles, identify, and evaluate candidate managers including reviewing their qualifications and track records, key investment terms, and identifying any significant issues (including investment risks and concerns).
•    Conduct comprehensive due diligence on prospective managers in the covered area. The due diligence investigation will also include operational due diligence of a prospective fund or manager’s governance, organization, back office, accounting, risk, systems, and valuation methodologies. Provide due diligence reports, which shall include an executive summary, detailed findings, identified risks, mitigation analysis, and a recommendation. Report must be delivered no later than one month prior to intend investment closing. 
•    Provide ongoing monitoring and oversight of managers with regard to organizational stability, changes in investment focus, key personnel, ownership structure, and compliance with laws, regulations, investment policies, mandates, investment performance, and other relevant matters.
•    Request information from managers in order for agency to comply with regulatory and/or other requirements.
- Performance Monitoring and Reporting
•    Facilitate the development and selection of appropriate performance benchmarks and policy benchmarks for each asset class and each manager.
•    Calculate rates of return at multiple levels of the portfolio independently from agency Custody Bank. Evaluate manager performance and consistency relative to their mandates, the investment guidelines, and established benchmarks. Conduct ongoing discussions with managers on investment performance. Advise on manager surveillance, retention/termination, and help evaluate any under- or irregular performance of managers.
•    Provide timely, comprehensive quarterly reports that include performance analysis, attribution analysis, portfolio risk analysis, and peer analysis of the individual managers, composites, and total fund. Review the performance of the public market managers and portfolios relative to established benchmarks and peer groups. Provide analysis of the current market environment, key events in the financial markets, and the performance of the major market indexes.
•    Reconcile all cash flows, net asset values, and investment data with the reports and records of agency Custody Bank and portfolio analytics service provider for accuracy. Reconcile investment returns at least quarterly with manager-calculated returns.
- Compliance Monitoring and Reporting
•    Provide quarterly reports on the compliance of separately managed public market mandates with applicable investment guidelines as set forth in their contracts with agency.
•    Provide quarterly reports on the securities lending program’s performance, income, and risks.
•    Assist in producing agency Investment Year in Review and Annual Investment Plan. 
- Meeting, Training, and Client Service
•    Meet with agency Investment Team weekly, or as needed, to review the portfolio, pipeline, investment opportunities, upcoming presentations, and any other pertinent matters.
•    Attend meetings with potential investment managers as part of underwriting, either virtually or at the manager’s headquarters. 
•    Attend all investment-related Board meetings, generally once a month. Review performance, market and portfolio risks, assess the investment program, and make recommendations quarterly at the Board meetings.
•    Provide educational workshops to the Board and/or Staff on specific issues designated by agency and/or recommended by the Consultant.
•    Assist agency Investment Team in responding to questions from the internal and external auditors as necessary.
•    Provide comments and analysis on proposed federal and state legislation affecting the agency portfolio. 
•    Provide comments and analysis on proposed federal and state legislation affecting the public markets investment portfolio.
•    Report significant changes in the Consultant’s ownership, organizational structure, personnel, and other areas that may be relevant to the Consultant on a timely basis.
•    Support periodic projects led by Staff related to topics such as the custodial bank relationship, the overlay program, cash management, and/or proxy voting. 
•    Work closely with agency dedicated real estate and alternative assets investment consultants to implement private market investments within the context of the strategic asset allocation of the total fund, and to provide the Board and Staff with independent opinions on what the alternative assets and real estate consultants are recommending for agency.
- The day-to-day administration of agency is delegated to the chief executive officer and a full-time staff of approximately 75 employees.