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RFP: ACTIVE US AND NON-US EQUITY INVESTMENT MANAGEMENT SERVICES (EMERGING MANAGER)

The Los Angeles County Employees Retirement Association (“LACERA”), a $53.3 billion public fund, is evaluating the capabilities of emerging manager investment management firms which offer portfolio management services for active U.S. and non-U.S. equity strategies. LACERA’s Board of Investments has established the following minimum qualifications for this evaluation:

Minimum Qualifications

All returns must be verifiable. Managers with unverifiable returns will be disqualified. LACERA’s Emerging Manager Policy articulating the Program’s complete guidelines and minimum qualifications is attached (Appendix A) for reference.

  1. The emerging manager is a registered investment advisor under the Investment Advisers Act of 1940.
  2. No person or entity, other than the principals or employees of the emerging manager, shall own more than a forty-nine percent (49%) interest in the emerging manager.
  3. LACERA prefers emerging managers who currently comply with the performance presentation standards set forth in Global Investment Performance Standards (GIPS) of the CFA Institute. If the emerging manager does not currently follow the GIPS standards, then the emerging manager must make a good faith effort to comply with such standards within one (1) year of hire.
  4. The portfolio managers that are assigned to manage the LACERA portfolio must have an average of at least five (5) years of verifiable investment experience managing portfolios containing a similar investment style as the mandate for which the emerging manager is being hired by LACERA.
  5. The emerging manager must have at least $25 Million of assets under management in the same investment style as the assets to be managed for LACERA before any allocation of LACERA Assets to the emerging manager.
  6. Each emerging manager must have no more than $2 Billion of total assets under direct management prior to selection.
  7. The emerging manager must have direct responsibility for managing assets of the same investment style it will manage for LACERA for at least three (3) other clients besides LACERA.
  8. The assets for any single client (other than LACERA) must comprise no more than fifty percent (50%) of the total assets managed by the emerging manager.
  9. At least 60% of the proposed product’s quarterly rolling one-year excess returns over the last three years ended June 30, 2017 (6 of 9 observations) must exceed the strategy’s respective benchmark on a net of fee basis by the levels identified in the following schedule:
    U.S. Equity all capitalization ranges 50 bps
    Non-U.S. Developed Markets Small Cap Equity 75 bps
    Non-U.S. Developed Markets Equity all other cap ranges 50 bps
    Non-U.S. Emerging Markets Equity all cap ranges 75 bps

Submission Requirements

If your firm is interested in participating in this evaluation, please submit five (5) copies, spiral bound (no hard binders or marketing materials) of your written response (maximum 50 pages if one sided, maximum 25 pages if double-sided, 12-point font size), and one (1) electronic copy (using Microsoft Word or PDF), on a USB flash drive to:

  • Brenda Cullen
  • Investment Officer — Equities
  • LACERA
  • Gateway Plaza
  • 300 North Lake Avenue, Suite 850
  • Pasadena, CA 91101

Please send one unbound copy, and one USB flash drive, each marked "REDACTED" to Ms. Cullen. The redacted copies should exclude all material from your proposal that you believe in good faith is exempt from disclosure under the California Public Records Act, (California Government Code section 6250 et seq. the "Act". Redactions should appear as blacked out material or blank page(s) with the word "REDACTED" or "PROPRIETARY" inserted. Each respondent must indicate the basis for the redaction under the Act. Please see the section below "NOTICE TO RESPONDENTS REGARDING THE PUBLIC RECORDS ACT AND RALPH M. BROWN ACT" for further information.

Deadline

Completed responses must be received no later than 3:00 p.m. (Pacific Time), November 3, 2017. Responses received after the specified deadline may be considered for evaluation solely at the discretion of LACERA.

Additional Information

Please note that during this evaluation process LACERA staff will, respectfully, not answer any questions related to the RFP. If a question appears unclear to you, please state your interpretation of the question and answer it accordingly. Additionally, respondents are requested not to contact LACERA personnel for meetings, conferences, or discussions related to this RFP.

Thank you for your interest in providing investment management services to LACERA.

RFP and Attachments

RFP Announcement
RFP: Active U.S. and Non-U.S. Equity Investment Management Services (Emerging Manager) MS Word file ZIPPED
PDF icon Appendix A
Appendix B Excel file ZIPPED