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    REQUEST FOR PROPOSA L FUND OF HEDGE FUNDS INVESTMENT ... REQUEST FOR PROPOSA L FUND OF HEDGE FUNDS INVESTMENT ... Document Transcript

    • REQUEST FOR PROPOSAL FUND OF HEDGE FUNDS INVESTMENT MANAGEMENT SERVICES RFP #2008-1 (Phase 1) August 1, 2007 Iowa Public Employees’ Retirement System 7401 Register Drive Des Moines, IA 50321 Phone: 515-281-0030 Fax: 515-281-0045 Web site: www.ipers.org Page 1
    • IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM Fund of Hedge Funds Investment Management Services RFP – PHASE 1 _____________________________________________________________________________________ TABLE OF CONTENTS 1. Purpose, Definition of Product, Minimum Requirements, and Scope of Services ............... 3 2. Administrative Information ................................................................................................... 5 3. Questionnaire.........................................................................................................................11 4. Appendices. ...........................................................................................................................13 Page 2
    • IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM Fund of Hedge Funds Investment Management Services RFP – PHASE 1 _____________________________________________________________________________________ PART 1 PURPOSE, DEFINITION OF PRODUCT, MINIMUM REQUIREMENTS, AND SCOPE OF SERVICES A. PURPOSE 1. This Request for Proposal (“RFP”) is issued by the Iowa Public Employees’ Retirement System (“IPERS” or “System”) for the purpose of hiring an investment management firm or firms (each a “Manager”) to provide investment management services for a fund of hedge funds product that will be utilized to provide the “alpha” in a portable alpha strategy. 2. The total mandate value will be approximately $600,000,000. The Manager(s) will have full discretion to manage the portfolio consistent with IPERS’ Investment Policy & Goal Statement and the terms of the contract between the System and the Manager. IPERS reserves the right to not hire any Managers for this mandate. 3. IPERS’ selection process for this mandate will be conducted in three (3) Phases. Phase 1 (this document) will collect primarily quantitative information from potential Managers. This information will be evaluated and scored based on a pre-determined algorithm to obtain a group of the highest scoring Products that will then advance to Phase 2. In Phase 2, the remaining potential Managers will be required to submit detailed information concerning their risk management and portfolio construction processes, as well as other aspects of the Product or firm. An evaluation committee will evaluate the responses received in Phase 2 and determine which Managers should advance to Phase 3. In Phase 3, final due diligence (including on-site visits) will be conducted to evaluate the remaining potential Managers’ operations, stability, and ability to work with IPERS. IPERS reserves the right to modify this process as necessary. 4. Any firm that meets the minimum requirements of this RFP is encouraged to submit a proposal. The RFP is available electronically on the Wilshire Associates Web site (Wilshire is IPERS’ consultant), http://www.wilshire.com/BusinessUnits/Consulting/Research/ManagerSearch.html, the IPERS Web site, www.ipers.org, and on the State of Iowa Web site, www.state.ia.us. B. DEFINITION OF PRODUCT The “Product” is defined to be a low volatility fund of hedge funds product (with a target absolute risk of 5% or less annually) suitable for use in a portable alpha strategy. The Product’s returns shall have a consistently low correlation to major asset class indices and be able to produce alpha while maintaining low volatility and a high information ratio. Ideally, the firm offering the Product will: 1. Offer customized solutions for investment in a well-diversified portfolio of hedge funds under key risk parameters established by IPERS. 2. Provide a high level of transparency into the firm’s investment and risk management processes (including IPERS staff occasional participation in due diligence meetings with hedge fund managers). 3. Provide a high level of access and interaction between IPERS staff and the firm’s key Page 3
    • IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM Fund of Hedge Funds Investment Management Services RFP – PHASE 1 _____________________________________________________________________________________ investment personnel. C. MINIMUM REQUIREMENTS To be considered as a Manager for the purpose stated above, all of the following minimum requirements must be met: 1. The Product must have a proven 3-year performance record as of June 30, 2007, (note: simulated or back tested results for any or all of the period will not be accepted). 2. The Product must be a fund of hedge funds product with an objective of maintaining low volatility (defined as having returns with annual standard deviation of 5% or less). 3. The firm’s combined total assets under management in all low volatility funds and accounts (includes the proposed Product and similar products) must be at least $500 million as of June 30, 2007. 4. The firm should not employ any leverage at the fund of funds level. 5. The firm must be willing to accept a performance-based fee arrangement for payment. If the firm has multiple Products that meet these requirements, please only submit one proposal for the Product that is the most appropriate. D. SCOPE OF SERVICES The Manager will be required to provide the following scope of services to IPERS: 1. Invest allocated funds in conformity with the investment policy and guidelines of the System, as defined in the contract established between IPERS and the firm. Provide discretionary management of the funds under the contract. 2. Provide periodic reports and information relating to the firm’s investment strategy and other pertinent information pertaining to the investment of the System’s funds, as requested by IPERS. Provide monthly reports on portfolio appraisals, performance evaluation and attribution, risk measurements and trading activities. Provide the methods used by the fund of funds manager and the underlying managers’ to value investments. 3. Participate in public meetings on a periodic basis to provide information to the System concerning the investment performance of IPERS’ portfolio and the firm’s investment outlook and strategy for IPERS’ portfolio. 4. Maintain a good working relationship with IPERS staff by providing timely information regarding material changes in the firm’s organizational structure, staffing, investment philosophies, and any other pertinent information IPERS staff may require in evaluating the performance of the portfolio. 5. Provide a high level of transparency into the firm’s investment and risk management processes (including IPERS staff occasional participation in due diligence meetings with hedge fund managers), and provide a high level of access and interaction between IPERS staff and the firm’s key investment personnel. The scope of services defined in the final contract between IPERS and the Manager will be binding and will supersede this section of the RFP if different from the scope of services defined here. Page 4
    • IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM Fund of Hedge Funds Investment Management Services RFP – PHASE 1 _____________________________________________________________________________________ PART 2 ADMINISTRATIVE INFORMATION A. INSTRUCTIONS FOR SUBMITTING PROPOSALS 1. Managers responding to this RFP must provide answers to the questions posed in Part 3 of this RFP. All proposals must be complete in every respect and must answer concisely and clearly all questions proposed by the RFP. Late proposals will not be accepted, and will be returned unopened to the Manager. 2. Proposals shall be submitted with a cover letter stating in the affirmative that the firm meets each and all of the minimum requirements listed in Part 1.C of this RFP, and that the firm is able and willing to provide the type and level of services required to fulfill the mandate proposed in this RFP. The cover letter and the offer made by the proposal, and any clarifications to that proposal shall be signed by an officer of the offering firm or a designated agent empowered to bind the firm in a contract. The cover letter must also identify any sections of the proposal that the firm is identifying as confidential. (See Disclosure of Proposal Content.) 3. Proposals should follow the order of questions as they are asked in Part 3 of this RFP. In response to each question asked in Part 3, restate the main question (denoted by a number or a letter) in bold font followed by your answers stated in regular font. Responses should be thorough and answer the specific question asked, (including the issues addressed in the bullet points following a question). 4. Supporting material must be clearly referenced to the appropriate question. Information and materials, which are strictly promotional in nature, should not be used. The submission of such material may serve to disqualify the firm from further consideration. 5. Verbal communication with IPERS staff regarding this RFP or the firm’s proposal shall only be made to the RFP Coordinator identified in item 7 below. Firms will be given the opportunity to submit written requests for clarification of questions or terms contained in the RFP. In all cases, verbal communications will not override written communications. 6. Proposals must be received at the IPERS Headquarters no later than 3:00 p.m. CST, August 21, 2007. 7. A firm must submit one (1) original proposal and two (2) complete copies to IPERS and two (2) complete copies to Wilshire Associates, at the following addresses: Original and two copies to: Two copies to: Iowa Public Employees' Retirement System Wilshire Associates 7401 Register Drive 1299 Ocean Avenue Des Moines, IA 50321 Santa Monica, Ca. 90401-1085 Attn: Keith Scholten, RFP Coordinator Attn: Eileen Neill In addition, the firm must E-mail a complete electronic version of its proposal and all appendices to Wilshire Associates at mgrsearch.neill@sm.wilshire.com and IPERS at investments@ipers.org. The electronic file must be submitted in Zip format. Page 5
    • IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM Fund of Hedge Funds Investment Management Services RFP – PHASE 1 _____________________________________________________________________________________ B. REJECTION OF PROPOSALS 1. Firms responding to this RFP should restrict their proposed investment structure to that specified in this RFP. Proposals not meeting the RFP's minimum requirements will be rejected. 2. IPERS reserves the right to reject any or all proposals in whole or in part received by this request, due to noncompliance with the requirements of this RFP or for any other reason. IPERS will not pay for any information herein requested, nor is it liable for any costs incurred by the submitting Managers. 3. Managers whose proposals do not meet the minimum requirements will be so notified. After evaluation of the proposals, selection, and approval by IPERS, all Managers will be notified of the successful firm or firms. 4. IPERS reserves the right to not hire or to defer the hiring of a firm for these management services. C. DISCLOSURE OF PROPOSAL CONTENT The laws of Iowa require that the content of bidders' proposals be maintained in confidence prior to the issuance of a notice of intent to award a contract. If IPERS issues a notice of intent to award a contract at the conclusion of the selection process, the contents of all proposals, excluding confidential information, will be placed in the public domain and open to inspection by interested parties. Trade secrets or proprietary information that are recognized as such and protected by law may be withheld, but only if designation of such sections is stated in proposing firms’ cover letters and confidential information is clearly identified as such on each of the applicable pages within the body of the proposal. Any proposal submitted which contains confidential information must be conspicuously marked on the outside as containing confidential information, and each page upon which confidential information appears must be conspicuously marked as containing confidential information. Identification of the entire proposal as confidential shall be deemed non- responsive and disqualify the firm. If the firm designates any portion of the RFP as confidential, the firm must submit one “excised copy” of the proposal to both IPERS and Wilshire Associates from which the confidential information has been excised. This excised copy is in addition to the number of copies requested in Part 2, A.7 of this RFP. The confidential material must be excised in such a way as to allow the public to determine the general nature of the material removed and to retain as much of the proposal as possible. The firm’s failure to request confidential treatment of material shall be deemed by IPERS as a waiver of any right to confidentiality, which the firm may have had. D. PROPOSAL OBLIGATIONS The contents of the proposal and any clarifications thereto submitted by the successful Manager shall become part of the contractual obligation and will be incorporated by reference into the ensuing contract. Page 6
    • IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM Fund of Hedge Funds Investment Management Services RFP – PHASE 1 _____________________________________________________________________________________ E. DISPOSITION OF PROPOSALS All proposals become the property of IPERS and will not be returned to the Manager. Notwithstanding the foregoing, if IPERS decides to terminate the selection process prior to the issuance of a notice of intent to award a contract, all proposals shall be destroyed by IPERS and no file copies shall be maintained by IPERS. Proposals that are received after the submission deadline will be returned to the Manager unopened. F. GRATUITIES 1. The laws of Iowa provide that it is a felony to offer or promise to give anything of value or benefit to a state employee with the intent to influence that employee's duties. Evidence of violations of this statute will be turned over to the proper prosecuting attorney. 2. IPERS provides reimbursement for transportation, lodging, meals and miscellaneous expenses for its employees. 3. IPERS employees are subject to stringent statutory restrictions relative to acceptance of gifts, meals, lodging or transportation from any service contractor. Except for expenses associated with attending Manager-sponsored educational conferences, to the extent such expenses are covered by the Manager for its other clients, no meals or travel expenses may be provided or subsidized by a Manager for IPERS employees. G. IOWA STATUTES AND RULES The terms and conditions of this RFP and the resulting contract shall be construed in accordance with the laws of Iowa. Whenever differences exist between federal and state statutes or regulations affecting this procurement, interpretation shall be in the direction of that which is most beneficial to the interests of the State of Iowa. H. SIGNATURE OF MANAGER'S AGENT The offer made by the proposal, and any clarifications to that proposal, shall be signed by an officer of the offering firm or a designated agent empowered to bind the firm in a contract. I. AWARD OF MANDATE IPERS reserves the right to award this contract not necessarily to the firm with the lowest fee or cost proposal, but to the firm or firms which will provide the best match to the requirements of the RFP. The successful Manager or Managers will be determined in accordance with the evaluation criteria defined by IPERS. J. EVALUATION OF PROPOSALS Information submitted in response to this RFP will be scored according to a pre-determined algorithm that is based on the evaluation criteria described below. A group of Products having the highest scores will then advance to Phase 2. In Phase 2, the remaining potential Managers will be required to submit detailed information concerning their risk management and portfolio construction processes, as well as other aspects of the Product or firm. An Evaluation Committee has been established to evaluate the responses received in Phase 2 and Page 7
    • IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM Fund of Hedge Funds Investment Management Services RFP – PHASE 1 _____________________________________________________________________________________ will determine which Managers should advance to Phase 3. In Phase 3, final due diligence (including on-site visits) will be conducted to evaluate the remaining potential Managers’ operations, stability, and ability to work with IPERS. Upon conclusion of Phase 3, the Evaluation Committee will meet and will decide which Manager or Managers, if any, shall be recommended for hiring to the IPERS Investment Board. The IPERS Investment Board will make the final Manager selection(s). K. EVALUATION CRITERIA For Phase 1 of the RFP, each potential Product will be evaluated on the criteria established below. For some criteria, the Product’s score will depend on whether they meet it or not, while in other cases the score will depend upon the Product’s relative position versus other contenders. The importance of each criterion is indicated in parenthesis. (Note: Products will be evaluated utilizing the returns provided by the firm in response to this RFP, which are the Product’s monthly returns net of all underlying hedge fund fees and expenses but before deduction of the Manager’s fund of fund management and/or performance fees.) 1. The average standard deviation of the Product’s returns must be less than 5% over all rolling 36 month time periods since inception. (Note: this is a pass/fail screen – any Product failing this criterion will be eliminated from further consideration.) 2. The Product’s average correlation to the S&P 500 Index must be less than 0.50 over all rolling 36 month time periods since inception (Note: this is a pass/fail screen – any Product failing this criterion will be eliminated from further consideration.) 3. The Product’s average Information Ratio1 must be greater than 0.50 over all rolling 36 month time periods since inception (Note: this is a pass/fail screen – any Product failing this criterion will be eliminated from further consideration.) 4. The Product’s standard deviation of returns will be evaluated over rolling 36 month and rolling 12-month time periods since inception and the latest 36 month time period. Products that exhibit lower standard deviation of returns will receive higher scores. (Weight = 12.5%) 5. The Product’s correlations to the S&P 500 Index, the Lehman Brothers Aggregate Index, and the MSCI EAFE Index will be evaluated over rolling 36 month and rolling 12- month time periods since inception and the latest 36 month time period. Products that exhibit lower correlations to these indices will receive higher scores. (Weight = 12.5%) 6. The Product’s Sortino Ratio (a measure of downside protection) will be evaluated over rolling 36 month time periods since inception and the latest 36 month time period. Products that exhibit higher Sortino Ratios will receive higher scores2. (Weight = 10%) 7. The Product’s Information Ratio will be evaluated over rolling 36 month and rolling 12- month time periods since inception and the latest 36 month time period. Products that exhibit higher Information Ratios will receive higher scores. (Weight = 10%) 8. The Product’s Calmar Ratio will be evaluated over rolling 36 month time periods since inception and the latest 36 month time period. Products that exhibit higher Calmar Ratios will receive higher scores (Weight = 10%) 1 Information Ratio will be calculated as the excess return of the product over 91-day U.S. Treasury Bills returns divided by volatility of this excess return. 2 The Sortino Ratio will be calculated using rolling 3-yr 91-day Treasury Bills returns, based upon monthly data, in the numerator. Page 8
    • IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM Fund of Hedge Funds Investment Management Services RFP – PHASE 1 _____________________________________________________________________________________ 9. The length of the overall track record of the Product will be evaluated. Products with longer track records will receive higher scores. (Weight = 15%) 10. The firm’s management team and key decision makers will be evaluated. Products that have teams with more years of experience (in the industry, working together as a team, and tenure with the Product) will receive higher scores. (Weight = 20%) 11. The firm’s ownership structure will be evaluated. Firms that are owned by the direct decision making professionals for the Product will be awarded a higher score. (Weight = 10%) The criteria for Phases 2 and 3 of the RFP will be determined and specified in the questionnaire for each respective phase of the process. L. THE RESULTING CONTRACT The contract(s) that IPERS expects to award as a result of the RFP will be based upon the proposal submitted by the successful Manager(s) and the RFP (all Phases). The contract between IPERS and the Manager shall be a combination of the specifications, terms and conditions of the RFP, including the offer contained in the proposal submitted by the Manager, any written clarifications or changes made in accordance with the provisions herein, and any other terms deemed necessary by IPERS. Prior to award, the apparent winning proposal(s) will be required to enter into discussions with IPERS to resolve any contractual differences before an award is made. These discussions are to be finalized and all exceptions resolved within one week of notification; if not, the firm’s proposal may be rejected and discussions may be initiated with other firms that submitted proposals. By submitting a proposal, each firm acknowledges its acceptance of these specifications, terms and conditions without change except as otherwise expressly stated in its proposal. M. TERM OF CONTRACT The contract shall be for a six-year period from the date of its execution. The resulting contract may be terminated at IPERS' discretion, with or without cause, after thirty (30) days written notice to the Manager, subject to any redemption notices that may be applicable. N. SCHEDULE OF EVENTS 1. August 1, 2007 – RFP PHASE 1 IS ISSUED 2. August 10, 2007 – INQUIRIES – Inquiries and requests for interpretation or clarification of the RFP Phase 1 from potential bidders will be accepted only via E-mail. All inquiries must be received no later than 3:00 p.m. CST, August 10, 2007. Firms must E-mail their inquiries to Wilshire Associates at the following address: mgrsearch.neill@sm.wilshire.com. 3. August 15, 2007 – RESPONSE TO INQUIRIES – Responses to and addenda resulting from requests for interpretation shall be posted on the Wilshire and IPERS Web sites no later than 4:30 p.m. CST, August 15, 2007. It is the firm’s responsibility to retrieve this information and consider it prior to submitting any proposal. Page 9
    • IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM Fund of Hedge Funds Investment Management Services RFP – PHASE 1 _____________________________________________________________________________________ 4. August 21, 2007 – PROPOSALS PHASE 1 DUE – The original proposal must be received at the IPERS Headquarters by 3:00 p.m. CST, August 21, 2007. 5. October 2007 – PHASE 2 – The top scoring firms will receive Phase 2 of the RFP that will require them to respond to additional questions regarding their proposed Product. 6. Late 2007/Early 2008 – PHASE 3 – Those firms selected by the Evaluation Committee from Phase 2 responses will be asked to respond to a final set of due diligence questions and on-site visits. 7. Early 2008 – ANNOUNCEMENT OF SELECTION – The System will notify all firms that submitted a proposal of its selection, which shall be subject to successful negotiation of a contract with the selected firm(s). Page 10
    • IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM Fund of Hedge Funds Investment Management Services RFP – PHASE 1 _____________________________________________________________________________________ PART 3 QUESTIONNAIRE The proposal must answer all of the following questions: 1. Provide all of the following information: Name of Firm: Product Name: Contact: Title: Address: Telephone #: Facsimile #: E-Mail Address: 2. Does the Product have a proven 3-year performance record as of June 30, 2007? Are any of the returns included in the performance record simulated or the result of “back testing”? Are the Product’s returns audited and verified? 3. Is the Product a fund of hedge funds product with an objective of maintaining low volatility (annual standard deviation of 5% or less)? 4. What is the combined amount of assets under management (at market value) of all of the firm’s low volatility funds and accounts (includes the proposed Product and similar products) as of June 30, 2007? 5. Does the firm employ any leverage at the fund of funds level? 6. Is the firm willing to accept a performance-based fee arrangement for payment? 7. Did the firm review the Response to Inquiries information posted on the IPERS or Wilshire Web sites (see Part 2, paragraph “N”, item 3 of this RFP) prior to submitting its proposal? 8. Provide a brief description of the Product and summarize why the Product is suitable for the purposes of the mandate described in this RFP. 9. In Appendix I, please provide the Product’s monthly returns that are net of all underlying hedge fund fees but before deduction of the Manager’s fund of fund management and/or performance fees. Please make sure to supply the monthly data with the most recent time periods (June 30, 2007) first and descending to the inception date. 10. In Appendix II, please provide the Product’s Maximum Drawdown as a percentage of assets on a rolling 3-year basis since inception. Please make sure to supply the data with the most recent time periods (June 30, 2007) first and descending to the inception date. 11. Please provide a detailed organizational chart for your organization, including names and titles for all investment professionals. Please indicate those individuals which may be covered by key man provisions. (Please note: Failure to provide the information as specifically requested may result in the disqualification of your Firm’s response from further consideration.) Page 11
    • IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM Fund of Hedge Funds Investment Management Services RFP – PHASE 1 _____________________________________________________________________________________ 12. List all principal officers (e.g., managing directors, directors, vice presidents, etc.), fund managers, analysts (research and quantitative), and client service officers involved with the Product and provide biographies for each individual and include it as Exhibit A. Using the format provided in Appendix III, please provide the summary information for each person identified in Exhibit A. 13. In Appendix IV, (30 words per change) state when and why any key investment personnel (e.g., fund managers, analysts, traders) left or joined the firm in each of the last five years and identify the products with which they were involved. Please use the format provided. (For personnel who have left, state number of years with the firm and who replaced them). 14. Provide a description of the prior investment activities of the key investment professionals prior to their forming/joining this firm. 15. Describe the history and ownership structure of the firm, including: a. Year firm was formed, and year the firm began managing its fund of funds business. b. The ownership structure. Indicate all entities that have an ownership stake in the firm (name and percentage). c. Affiliated companies or joint ventures. d. Recent or pending changes to the ownership or organization structure. e. Locations of firm’s offices, the key functions of each office, and the number of professionals employed at each office. 16. Provide an organization chart that diagrams the ownership and interrelationships between the parent-subsidiary, affiliate, and joint venture entities, if any. Attach the chart to the proposal as Exhibit B. 17. Has the Firm or any individual employee of the Firm ever been the subject of any regulatory sanctions or other legal action related to their investment responsibilities? If so, please describe the cause of action along with the final resolution. 18. Provide the fee and describe the performance fee structure that you would propose to charge IPERS for this Product, assuming a $100 million mandate. How would this fee change if the mandate was increased? Page 12
    • IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM Fund of Hedge Funds Investment Management Services RFP – PHASE 1 _____________________________________________________________________________________ PART 4 APPENDICES Page 13
    • IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM Fund of Hedge Funds Investment Management Services RFP – PHASE 1 _____________________________________________________________________________________ Appendix I Product Performance Provide the monthly return information net of all fees charged by underlying hedge funds but before deduction of the Manager’s fund of fund management and/or performance fees for the composite since its inception. If necessary, add additional rows to the bottom of the table. Firm Name Product Name Year Month Monthly Return% 2007 Jun 2007 May 2007 Apr 2007 Mar 2007 Feb 2007 Jan 2006 Dec 2006 Nov 2006 Oct 2006 Sep 2006 Aug 2006 Jul 2006 Jun 2006 May 2006 Apr 2006 Mar 2006 Feb 2006 Jan 2005 Dec 2005 Nov 2005 Oct 2005 Sep 2005 Aug 2005 Jul 2005 Jun 2005 May 2005 Apr 2005 Mar 2005 Feb 2005 Jan 2004 Dec 2004 Nov 2004 Oct 2004 Sep 2004 Aug 2004 Jul Page 14
    • IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM Fund of Hedge Funds Investment Management Services RFP – PHASE 1 _____________________________________________________________________________________ Appendix II Maximum Drawdown Please provide the Product’s Maximum Drawdown for all 36-month rolling periods since inception of the Product in the format shown below. Insert additional rows if needed. 36-month period Maximum Drawdown ending: As a Percentage of Assets 6/30/07 5/31/07 4/30/07 3/31/07 2/28/07 1/31/07 12/31/06 11/30/06 10/31/06 9/30/06 8/31/06 7/31/06 6/30/06 5/31/06 4/30/06 3/31/06 2/28/06 1/31/06 12/31/05 11/30/05 10/31/05 9/30/05 8/31/05 7/31/05 Page 15
    • IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM Fund of Hedge Funds Investment Management Services RFP – PHASE 1 _____________________________________________________________________________________ Appendix III Total Years of Years Years Title and Industry With With Education 4/ Professional Name Responsibilities 3 Experience Firm Product Degree/Year School Designations 3 Please indicate whether individual has responsibilities for products other than the subject product. 4 Most advanced degree only. Page 16
    • Appendix IV Indicate when and why any professional dedicated to the Product left or joined the firm in the past five years. What were/are their job responsibilities? For personnel who have left indicate job titles and years with the firm and who replaced them. Date Name/Title Responsibilities Years at Reason for Leaving Replaced by Firm (name/title) Departed: Joined: SUMMARY: Total # of # Joined # Departed % Turnover Professionals 2001 2002 2003 2004 2005 2006 2007 YTD Page 17
    • IOWA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM Fund of Hedge Funds Investment Management Services RFP – PHASE 1 ____________________________________________________________________________________ Indicate in the table below the percentage of time spent by each professional involved in the Product on the activities identified in the table. Investment Name of Management Marketing Client Research Portfolio Trading Compliance Other Professional Service Management Page 18