Specific Services Requested from the Investment Consultant
Enumerated below are the specific services requested from the Investment Consultant:

General Advisory:

  1. Formulation and review of investment goals, objectives and policies:
  • Formal annual review of asset allocation including a review and assessment of the underlying capital market assumptions.
  • Annual review of Investment Policy Statement, and assistance in drafting any necessary revisions.
  • Assist with rebalancing activities and transition management, including pre- and post-trade cost evaluation.
  • Implementation of current asset allocation plan.
  • Provide recommendations for and assist in the implementation and enhancement of existing risk management strategies.
  • Annual review of the SURS investment program including development of important strategic and policy-related recommendations.
  • Annual review of Self-Managed Plan (Defined Contribution) Investment Policy.
  • Review and provide recommendations on the structure of each asset class and provide summary reports for each of the asset classes to coincide with the asset class review.
  • Provide an independent alert to impending risks that may affect the fund.
  1. Review of fees and contracts:
  • Review guidelines and objectives for new and existing investment managers, review benchmarks, contracts and fees, recommend revisions, and participate in negotiations with investment managers to effect revisions.
  • Review and opine on LPA or IMA amendments and other partnership actions
  1. On-going monitoring of investment managers and service providers responsible for SURS investment program, both the defined benefit plan and defined contribution SMP plan, particularly with regard to consistency of investment style, organizational stability, and performance:
  • Review and opine on the annual organizational and performance reviews for each of the System’s investment managers and securities lending provider. Each asset class has a specific Investment Committee meeting where Staff present a particular Asset Class Review.
  • Review and opine on the annual organizational and performance reviews prepared by staff for each of the System’s SMP investment service providers and investment options.
  • Communicate with SURS regarding any important developments regarding investment managers or service providers and make recommendations for manager assignment changes when appropriate.
  • Conduct an independent annual review of the Manager Diversity Program (MDP), including a recommendation on the continuation or termination of the program.
  1. Performance measurement and reporting:
  • Prepare and present written and verbal quarterly summaries of investment manager activities, performance, and risk to the Board of Trustees.
  • Quarterly reports on the investment risk and performance of the total fund, by asset class, and by manager will include an analysis of the current market environment and key events in the financial markets, a review of the performance of the major market indexes, an analysis of the asset allocation of the current investment program, and a return attribution analysis.
  • Quarterly reports will also contain written commentary on the investment results of all portfolios (including private markets) in the context of their objectives and benchmarks, specific commentary on factors affecting performance, and a review of notable organizational issues for each investment manager.
  • Quarterly reports must be finalized no later than seven weeks after the end of the previous quarter, depending on the Board meeting schedule.
  • All performance returns must be calculated both gross and net of fees.
  1. Manager searches:
  • Conduct equity; fixed income; private markets and other related asset classes; custodian/securities lending, SMP investment provider searches as necessary in accordance with SURS’ Statement of Investment Policy.
  • The consultant will maintain an extensive database which includes minority- and female-owned firms and firms owned by persons with a disability, and must demonstrate non-discriminatory practices in the construction and maintenance of this database.
  • Prepare investment manager RFPs based on criteria defining the need in the investment portfolio. Review investment manager RFP responses alongside Staff to identify qualified candidates based on the criteria presented in the RFP.
  • Attend manager search due diligence meetings.
  • Prepare and present search report to Investment Committee.
  1. Fiduciary Education:
  • Educate Board of Trustees and Staff regarding significant trends in institutional investments and new investment opportunities.
  • Educate Board of Trustees and Staff regarding significant trends inthe Defined Benefit and Defined Contribution marketplace.
  • Provide access to all research and non-exclusive educational opportunities for Staff and the Board of Trustees including periodic client conferences and database training, as necessary.
  1. Meeting attendance:
  • Attend all Investment Committee meetings, Trustee Educational Forums, and Quarterly SURS Board meetings, as requested. There are a minimum of seven investment committee meetings and one Trustee Education event per year that are each approximately 4-6 hours in length. The majority of the investment committee meetings currently are held in Chicago, Illinois, with 2-3 typically held in the SURS offices in Champaign, IL.
  • Related investment meetings and discussions.
  • Meet with Staff to assist in the development of investment committee agendas.
  • Formal interviews with existing and potential investment managers, including the Self-Managed Plan, as requested.
  • Ad hoc due diligence meetings with investment managers and Staff.
  1. Other:
  • Make meeting space available to SURS as reasonably requested for meetings of the SURS Board of Trustees and its committees, meetings with SURS’ staff, and for manager searches, should you have a Chicago office. SURS will not pay for the use of meeting rooms, but SURS will be responsible for payment of all food and beverages requested or arranged by SURS in conjunction with any such meeting.
  • Conduct such other services under the contract as may be reasonably asked of an investment consultant by a public pension plan.
  • Availability by phone, email or in-person meetings when appropriate to Staff and Trustees for further discussion or questions.
  • Assist Staff in preparing comprehensive analysis of specific issues as designated by SURS or the Board of Trustees. Examples might include active vs. passive management, internal vs. external management, private markets fee analysis, appropriate benchmarks, the use of derivatives, etc.

Private Markets:(Real Estate, Hedged Strategies, Private Equity, Infrastructure, and Commodities):

  • Attend meetings of the Investment Committee and Board of Trustees when private market issues arise to provide an assessment of any investment or manager issue arising during the period, to discuss topical issues and possible policy impact to SURS, and to present any recent research conducted by Investment Consultant.
  • Annually review the Statement of Investment Policy focusing on the structure and diversification of the portfolio(s) and include an analysis of investment pacing based on cash-flow and current commitments.
  • Support the selection of private markets investments including search(es) for commingled funds or other appropriate vehicles for SURS to meet the requirements of the annual investment pacing analysis by analyzing investments coming to market, analyzing other appropriate investment opportunities and conducting detailed due diligence. It is expected that the consultant will introduce the System to high-quality managers and promote SURS access to funds. Any internally-generating manager/fund pipeline reports and/or recommended manager/fund reports will be made available to SURS staff on a periodic basis.
  • Ongoing monitoring of SURS private markets managers and related investments focusing on investment performance and organizational issues such as, but not limited to, changes in ownership, retention of professional staff, fee changes and new products.
  • Review and recommend courses of action for all fund document amendments and other partnership actions.
  • Each year, at a specific Investment Committee meeting of the Board of Trustees, SURS Staff present an Asset Class Review of each private markets sub-asset class, incorporating information from annual organizational and performance reviews for each of the System’s managers. Consultant will review and provide commentaryon the annual organizational and performance reviews for eachmanager. Consultant will prepare an annual report for each sub-asset class in conjunction with Staff’s review. The report will include an analysis of the current market environment, a summary of the most recent events in the financial markets, a review of the performance of the major private marketsindexes; an analysis of the asset allocation of the current investment program; a complete return analysis, including peer universe comparisons over various time periods; and a review of the investment results in the context of their objectives and benchmarks, along with specific commentary on factors affecting performance. Additionally, Consultant will preparequarterlyPrivate Markets Reportsproviding information on manager cash flow activity and performance, including peer universe comparisons over various time periods. Annual and quarterly reports are due no later than 30 days after the respective period end.
  • Access to all private markets research, published or unpublished, and general memoranda produced by Investment Consultant.
  • Availability by phone, email or in-person meetings when appropriate to Staff and Trustees for further discussion or questions.

Defined Contribution:

  1. Formulation and review of investment goals, objectives and policies:
  • Annual review of Investment Policy Statement, and assistance in drafting any necessary revisions.
  • Provide recommendations for and assist in the implementation and enhancement of existing plan structure.
  • Annual review of the SURS SMP investment program including development of important strategic and policy-related recommendations.
  • Provide an independent alert to impending risks that may affect the fund.
  1. Review of fees and contracts:
  • Review guidelines and objectives for new and existing investment managers, review benchmarks, contracts and fees, recommend revisions, and participate in negotiations with investment managers to effect revisions.
  • Review and opine on contract amendments.
  1. On-going monitoring of investment managers and service providers responsible for SURS SMP, particularly with regard to consistency of investment style, organizational stability, and performance:
  • Review and opine on the annual organizational and performance reviews prepared by staff for each of the System’s SMP investment service providers and investment options.
  • Communicate with SURS regarding any important developments regarding investment managers or service providers and make recommendations for manager assignment changes when appropriate.
  1. Performance measurement and reporting:
  • Prepare and present written and verbal quarterly summaries of investment manager activities, performance, and risk to the Board of Trustees.
  • Quarterly reports will also contain written commentary on the investment results of all portfolios in the context of their objectives and benchmarks, specific commentary on factors affecting performance, and a review of notable organizational issues for each investment manager.
  • Quarterly reports must be finalized no later than seven weeks after the end of the previous quarter, depending on the Board meeting schedule.
  • All performance returns must be calculated both gross and net of fees.
  1. Manager searches:
  • Conduct SMP investment provider searches as necessary in accordance with SURS’ Statement of Investment Policy.
  • Prepare RFPs based on criteria defining the need in the investment portfolio. Review investment manager RFP responses alongside Staff to identify qualified candidates based on the criteria presented in the RFP.
  • Attend manager search due diligence meetings.
  • Prepare and present search report to Investment Committee.
  1. Fiduciary Education:
  • Educate Board of Trustees and Staff regarding significant trends inthe Defined Contribution marketplace includingnew investment opportunities
  • Provide access to all research and non-exclusive educational opportunities for Staff and the Board of Trustees including periodic client conferences and database training, as necessary.
  1. Meeting attendance:
  • Attend Investment Committee meetings, Trustee Educational Forums,Quarterly SURS Board meetings as requested. There are a minimum of seven investment committee meetings and one Trustee Education event per year that are each approximately 4-6 hours in length. The majority of the investment committee meetings currently are held in Chicago, Illinois, with 2-3 typically held in the SURS offices in Champaign, IL.
  • Related investment meetings and discussions.
  • Meet with Staff to assist in the development of investment committee agendas.
  • Formal interviews with existing and potential SMP investment managers, as requested.
  • Ad hoc due diligence meetings with investment managers and Staff.
  1. Other:
  • Make meeting space available to SURS as reasonably requested for meetings of the SURS Board of Trustees and its committees, meetings with SURS’ staff, and for manager searches, should you have a Chicago office. SURS will not pay for the use of meeting rooms, but SURS will be responsible for payment of all food and beverages requested or arranged by SURS in conjunction with any such meeting.
  • Conduct such other services under the contract as may be reasonably asked of an investment consultant by a public pension plan.
  • Availability by phone, email or in-person meetings when appropriate to Staff and Trustees for further discussion or questions.
  • Assist Staff in preparing comprehensive analysis of specific issues as designated by SURS or the Board of Trustees. Examples might new plan structure/options, fee analysis, appropriate benchmarks, etc.
  • Assist with structure changes resulting from legislation, including the possibility of creating a new plan.