LCCFO16R0004-0001_-_Investment_Advisory_Services_-_Amendment.pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

1. CONTRACT ID CODE

2. AMENDMENT/MODIFICATION NO.

-0001

3. EFFECTIVE DATE 4. REQUISITION/PURCHASE REQ. NO. 5. PROJECT NO. (If applicable)

9411CODE

Office of Contracts Management Library of Congress 101 Independence Ave SE LA325 Washington, DC 20540-9411

6. ISSUED BY 9411CODE

Office of Contracts Management Library of Congress 101 Independence Av SE LA 325 Washington, DC 20540-9411

7. ADMINISTERED BY (If other than Item 6)

9A. AMENDMENT OF SOLICITATION NO.

LCCFO16R0004

CODE FACILITY CODE

8. NAME AND ADDRESS OF CONTRACTOR (No., street, country, state and ZIP Code) (X)

X 9B. DATED (SEE ITEM 11)

03/28/2016

10A. MODIFICATION OF CONTRACT/ORDER NO.

10B. DATED (SEE ITEM 11)

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

X XThe above numbered solicitation is amended as set forth in item 14. The hour and date specified for receipt of Offers is extended, is not extended, Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods: (a) By completing items 8 and 15, and returning ____copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment your desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

12. ACCOUNTING AND APPROPRIATION DATA (If required)

13. THIS ITEM ONLY APPLIES TO MODIFICATION OF CONTRACTS/ORDERS.

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

CHECK ONE A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT

ORDER NO. IN ITEM 10A.

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority)

E. IMPORTANT: Contractor is not, is required to sign this document and return _______ copies to the issuing office.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitaiton/contract subject matter where feasible.)

The purposed of this amendment is to:

1) Revise Section C.4.1 - Contractor Qualification; the minimum number of years has been changed from 10 years to 8 years and the amount of assets managed under advisory services has been changed from $10 billion to $ 8 billion. See Section C on page 4.

2) Provide responses to questions. See Section J Attachment 3

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15A. NAME AND TITLE OF SIGNER (Type or print) 16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print) "Andrew Sullivan, 202-707-1739, ansu@loc.gov"

(Signature of person authorized to sign)

15B. CONTRACTOR/OFFEROR 15C. DATE SIGNED

By (Signature of Contracting Officer)

16B. UNITED STATES OF AMERICA 16C. DATE SIGNED

NSN 7540-01-152-8070

Previous edition unusable

STANDARD FORM 30 (REV. 10-83)

Prescribed by GSA FAR (48 CFR) 53.243

Document Type: QS Document Number: LCCFO16R0004 Page 1 of 5

Table of Contents

Section Description Page Number

CS Continuation Sheet Section C Descriptions and Specifications Section J List of Attachments

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Section C - Continuation Sheet

Section C Descriptions and Specifications

STATEMENT OF WORK

C.1. BACKGROUND

The Library of Congress (the Library) is the nation's oldest federal cultural institution and serves as the research arm of Congress. It is also the largest library in the world, with more than 130 million items. The Library's mission is to make its resources available and useful to the Congress and the American people and to sustain and preserve a universal collection of knowledge and creativity for fu-ture generations.

The Library of Congress Trust Fund Board (TFB) is authorized by 2 U.S.C. 154-163 to accept donations, bequests, or devices (cash, securities, real property, etc.) for programs, projects, and activities in support of the Library’s mission. The Joint Committee on the Library (2 U.S.C. 156) must also approve acceptance. Once accepted and approved, a separate and unique fund account is established in the Library’s central financial management system to maintain accountability for all transactions, and a Library of Congress Fund Manager is appointed to administer the fund’s program activities. The fund is administered in accordance with the Board’s direction and any specific donor stipulations. The Library’s Fund Manager and the Library’s Office of the Chief Financial Officer staff develop annual multi-year budget spending plans, which are used to make investment determinations that support the accomplishment of the spending plans. The TFB Investment Committee provides recommendations to the TFB regarding overall investment policy and se-lects various growth and income investments on behalf of the TFB.

In addition to Department of the Treasury investment options, the Board may make limited investments in private securities. 2 U.S.C.

§157 states that the TFB may not make any investments that could not “lawfully be made by a trust company in the District of Columbia, except that it may make any investment directly authorized by the instrument of gift, and may retain any investments ac-cepted by it.” The TFB follows the rules enacted in the Uniform Prudent Management of Institutional Funds Act (UPMIFA), which was ratified by the District of Columbia in 2008.

The overall objectives of the TFB’s investment policy are to support trust fund activities by:

A. Providing a stable, growing stream of payouts (from income and capital appreciation) for current and future expenditures;

B. Providing for the liquidity of investments to make payouts; and

C. Maintaining the “purchasing power” of endowment trust funds.

Currently, the Library has more than $120M in long-term investments. The pool is composed of the assets of more than 120 discrete Library trust funds (accounts) that are commingled for the purpose of investment, each of which reflects the specifics of an individual instrument of gift and provides income for the Library to operate a discrete activity or project.

C.2. SCOPE

Investment Advisory Services to work with the TFB Investment Committee and Library staff on investment policy, strategy, and fund selection.

C.3. CONTRACTOR REQUIREMENTS

The Library of Congress requires a knowledgeable, seasoned, stable and responsive servicing team assigned to its account. This is a key element of this contract.

The investment advisor will work with the Investment Committee on appropriate investment philosophy, capital market trends, regular investment performance reports, policy reviews and updates, asset allocation strategy, investment manager searches, investment man-ager evaluations, compliance monitoring, education, and by providing the Committee with other investment consulting services as

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Specifically, the Library seeks an investment advisor to perform the following functions:

A. Perform analysis, on a continuing basis, of the investment portfolio of the Library trust funds;

B. Conduct a periodic analysis of the investment policy of the Trust Fund Board (TFB), and recommendations for changes based on prevailing best practices and UPMIFA;

C. Provide Investment consultation and recommendations to implement investment strategies in order to maximize the solvency and growth of Library trust funds. Such consultation and recommendations will include asset allocation recommendations as well as in-vestment manager recommendations;

D. Provide manager implementation services, including assistance and support in account setup with fund managers;

E. Provide quarterly reports measuring the performance of the Library investment portfolio in total, as well as each manager;

F. Provide semi-annual reports of the trailing five-year historical performance of the investment portfolio;

G. Provide ongoing support and direction for Library staff on rebalancing investments, annual payout recommendations, advice on working with fund managers and custodial bank(s), and advice and support generally provided to public endowment funds.

Services would not include actuarial, legal, accounting, or custodial services. The Library has a custodial bank under contract.

C.4 Other Requirements

Contractor must provide responses to all questions in the attached Technical Proposal Questionnaire (see Section J - Attachments)

C.4.1 Contractor Qualification

To be considered a qualified investment advisory firm under this solicitation, Contractor must:

• Have a focus on providing investment advisory services to cultural institutions, educational institutions, government agencies, or foundations of a similar asset size to the Library;

• Have been providing these services for a minimum of 8 years;

• Manage at least $8 billion of assets under advisory services.

C.4.2. In General.

a) Proper Instructions.

(1) Definition. “Proper Instructions” means instructions received from the Librarian of Congress as Chair of the Trust Fund Board, the Library of Congress Chief Financial Officer, the Contracting Officer’s Representative, or any person duly authorized by either of them. Proper instructions may be in writing signed by the authorized person or may be in a communication utilizing security codes effected via computer systems (including electronic mail) or may be by such other means as may be agreed to from time to time by the Advisor and the authorized party giving such instructions (including, without limitation, oral instructions, provided that such oral instructions shall be followed by a written verification within one business day.) The Library reserves the right to limit, as neces-sary, what constitutes Proper Instructions for certain transactions from time to time upon prior written notification to the Advisor.

(2) Individuals Authorized to Give Proper Instructions. The Library shall cause its duly authorized officer to certify to the Ad-visor in writing the names and specimen signatures of persons authorized to give Proper Instructions and to the extent to which the Advisor may act on such authority. The Advisor shall be entitled to rely upon the identity and authority of such persons until it re-ceives notice from the Library to the contrary.

b) Limitation on Liability. Provided always that the Advisor, its agents and sub-Advisors act in good faith and without negligence or willful misconduct, in the performance of such duties as would ordinarily be expected of a financial institution in the relevant mar-ket and subject to the terms of the Contract, the Advisor shall not be liable for any loss or damage resulting from or caused by events or circumstances beyond its reasonable control.

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C.4.3. Documentation

The Contractor shall retain all documentation (including discretionary) for six (6) years. Contractor shall maintain and provide copies of proper documentation of all transactions made on behalf of the Library.

Section J - Continuation Sheet Identifier Title Date Number of

Pages 3 Questions and Answers - ADDED 04/19/2016 8

Section J List of Attachments

1) Attachment 1 - Library of Congress Investment Policy

2) Attachment 2 - Technical Proposal Questionnaire

3) Attachment 3 - Questions and Answers

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Questions for LCCFO16R0004 Investment Advisory Services

# Question Answer

Is the Library of Congress seeking to hire an investment consultant, or a discretionary asset manager (OCIO)?

We have not yet decided which route we will take. Hence, we are asking firms to present both options.

Is the Library seeking a traditional investment consultant that would suggest investment managers to the Investment Committee that they would ultimately select?

Or alternatively, is the Library seeking a discretionary asset manager that will hire and fire investment managers, report of these changes to the Committee, and assume a fiduciary role?

This solution is often labeled Outsourced Chief Investment Officer – or OCIO

We have not yet decided which route we will take. Hence, we are asking firms to present both options.

Will the Library of Congress be considering advisors that accept discretion for manager selection and termination? I wanted to confirm that discretionary approaches were suitable based on the desired role of the Committee.

Yes, we will consider OCIO advisors. We are seeking information on both consultant firms and OCIO firms.

Thank you for the notification. The minimum advisory size of $10 billion in effect rules out any diverse firm. Implicitly the Board would only like to work with large advisers. May I ask if the Library would be open to consider my firm teaming up with another larger firm in submitting a joint bid?

Yes, we would consider a joint bid. We are also adjusting the minimum advisory size to $8B.

Is the Library seeking a traditional investment consultant that would suggest investment managers to the Investment Committee that they would ultimately select?

We are seeking responses for both traditional consultant services and OCIO services.

Or alternatively, is the Library seeking a discretionary asset manager that will hire and fire investment managers, report of these changes to the Committee, and assume a fiduciary role.

This solution is often labeled Outsourced Chief Investment Officer – or OCIO

We are seeking responses for both traditional consultant services and OCIO services.

Is the Library of Congress entertaining a consulting model solely or would an OCIO/investment advisory model also be considered?

Both will be considered.

Is the Library of Congress open to custody services with another provider? We note that Item G. at the bottom of page 5 of 28 states, “Provide ongoing support and direction for Library staff on rebalancing investments, annual payout recommendations, advice on working with fund managers and custodial bank(s), and advice and support generally provided to public endowment funds. Services would not include actuarial, legal, accounting, or custodial services.

The Library has a custodial bank under contract.”, but question 13 of the RFP asks, “Address how you would structure the custody of the Library’s investment assets. Would an internal, external or blended approach be used?”

The Library currently has a contract with a custodial bank. Although another custodial arrangement may be considered in the future, it is not part of this solicitation and should not be proposed.

9 Do you use a consulting firm presently? If so, would you be willing Yes - Canterbury Consulting to share the incumbent’s identity?

What do you think is the single most important characteristic of an investment consulting firm?

Please see Section M.1 for evaluation factors.

11 What is the reason for issuing the RFP at this time? The current contract ends on 12/31/2016

Do you anticipate making any changes to the asset allocation of the investment pools? Are you considering any new asset classes?

Asset allocation is determined within a range defined by the Trust Fund Board.

Ranges may be changed, but change requires a vote by the Board. New asset classes may be considered within the limitations defined by US statute for investing public monies.

What is the most important investment issue your fund is currently facing?

The Library is in general very pleased with its portfolio make-up, performance and relationship with its non-discretionary consultant. However, the committee is exploring options that could provide for potentially more opportunistic/tactical moves, as well as more creativity and proactivity in both asset allocation and manager selection.

What was your spending rate for the last two years for the Growth and Income pool? What percent of the operating budget is supported by spending from this pool?

The Growth and Income pool is made up of 120 individual trust funds, each with unique spending requirements. Thus, we cannot provide a spending rate for the pool as a whole.

What issues are currently under consideration by the staff and/or committee? Are there strategic decisions currently pending with staff or the committee that the selected consultant would need to address and make recommendations on? Are there any specific issues that the Committee considers as current hot buttons?

There are currently no “hot button” issues.

The biggest issue for the Committee is to ensure that the investments are protecting the corpus of the trust funds while not only maintaining the purchasing power of the original donation but also growing as much as possible. Advisors must also take into consideration limitations placed on the kinds of investments the Library, as a federal institution, can make.

How large is your internal investment staff and can you briefly describe their key investment responsibilities and whether they have any non-investment duties as well?

The Library does not have internal investment staff. Rather, it has a liaison with the Investment Committee and current investment advisor, who administers the operations of the Committee and executes trades when directed by the Committee. In addition, the Library has a budget analyst and accountant who monitor the transactions and their effects on individual trust funds.

Does the Library of Congress seek to implement any specific mission-related or socially responsible investment objectives? If so, what might those be and are you getting support from your current advisor to implement these investments?

The Trust Fund Board and Investment Committee have not implemented any specific mission-related or socially responsible investment objectives.

Are there any particular philosophical preferences among the Investment Committee (e.g., regarding asset allocation; use of alternative assets; direct vs. fund-of-funds; active vs. passive management; etc.)?

The Investment Policy is the best reference for this question. The Policy was included in the RFP.

Is there any interest in a discretionary arrangement, in which the role of the consultant is expanded to include setting and implementing asset allocation, investment structure and manager selection? Are you looking to give the discretionary vendor full discretion over asset allocation, tactical investing and rebalancing and manager selection? Or, do you just want limited discretion to have the consultant implement manager movements of assets, rebalancing and oversee the administration of manager contracts, etc.?

The Library is considering both traditional investment advisory services as well as an OCIO arrangement.

In your review process, what discretionary characteristics will you be emphasizing (i.e., fund of funds approach, customized portfolio)?

The Library is open to both a fund of funds approach, totally customized approach or a blended model whereby some investments are pooled and others are in separate accounts.

Are you currently in a discretionary arrangement with your current consultant?

No. We are in a traditional arrangement currently.

Do you want responses for both traditional and discretionary services?

Yes.

What are the asset amounts in each of the three investment pool options?

As of March 31, 2016, the Growth and Income pool had a market value of $117M, the Short Term Investment Pool had a market value of $6M, the Treasury pool had a market value of $15.7M, and the Permanent Loan pool had a market value of $10M.

What services do you want for the Short Term Income Pool and the Short Term Investment Pool? What types of investments are in these two pools?

We are not seeking services for the Short Term Income Pool, which is made up exclusively of T-bills, which the Library administers internally. The Short Term

Investment Pool is currently made up of low risk mutual funds. We do wish for the advisor to administer that pool.

Does the Growth & Income Pool invest in alternative assets (i.e., private equity, hedge funds, real estate). Have you considered alternative assets for this pool?

The Trust Fund Board has an Investment Policy that specifies what kind of investments the Board may pursue. Hedge Funds are one type of asset the Board may not pursue. The policy was attached to the

RFP.

Will the information in our response be kept confidential or will some or all of this information made available publicly? Are we able to block some of the information from being public?

Offeror can mark proprietary not for release, however some information may become available if requested through the Library’s LCR 1917-3 (Availability of Library of Congress Records) http://www.loc.gov/staff/ogc/legal _ref/lcr/1900/1917-3.html

Are references a requirement at this stage? We traditionally provide them only after we know we have made it to the next round in a search and to point #1, they are highly sensitive to their information being provided in a document that may be made available publicly.

Yes, references are required as stated in the solicitation.

Are sliding fee schedules acceptable? The proposal asks for a fixed fee and we are pleased to offer a fixed fee schedule, yet the sliding scale is traditionally to the client’s benefit because as your assets grow, the basis point fee will decline.

Offerors may propose a sliding fee schedule, which must be defined in the response. So, for example, if the market value of the assets go above $xM, then the fee would drop down to y%, this would be acceptable.

Does the incumbent act as a discretionary or non-discretionary investment advisor and what are the fees paid to the consultant?

Incumbent acts as non-discretionary investment advisor.

Does the Investment Committee have any goals and objectives not listed explicitly in the RFP?

All requirements are as stated in the solicitation

The RFP requests price proposals for both discretionary and non-discretionary services. Which type of investment advisory service is preferred by the Investment Committee / Trust Fund Board?

Preference will be established upon evaluation of offers.

What has changed in the investment policy statement over the past three years?

The last time the Investment Policy statement was modified was January 2013.

Of the more than 120 discrete library trust funds, how many have restricted investments and what are the restrictions? What is the total value of these restricted funds?

There are a few trust funds that are restricted to investment in the Permanent Loan and Treasury pools only. Library staff monitor and administer those trust funds.

http://www.loc.gov/staff/ogc/legal_ref/lcr/1900/1917-3.html http://www.loc.gov/staff/ogc/legal_ref/lcr/1900/1917-3.html

How many trusts restrict principal from being paid out? What is the value of those trusts?

Only one trust fund, quite small, is permanently restricted.

Can you provide a breakdown of the approximate asset size for the following Pools:

a) Short‐Term Income Pool and Permanent Loan Treasury Pool;

b) Short‐Term Investment Pool; and

c) Growth and Income Pool.

As of March 31, 2016, the Growth and Income pool had a market value of $117M, the Short Term Investment Pool had a market value of $6M, the Treasury pool had a market value of $15.7M, and the

Can you please provide a listing of current fund investments in the Growth and Income Pool?

Please see the 2014 Trust Fund Board report, found at https://www.loc.gov/about/reports-and-budgets/financial-statements/trust-fund-board/. This report includes the list of investments used.

Does the Board have a preference for a non-discretionary or discretionary consultant?

The Library is open to both.

39 What custodian bank is currently being utilized? The Library currently has a contract with US Bank for custodial services.

Regarding the past performance request, outlined on pages 25 and 26 of the RFP document, is actual historical client return data being requested, in addition to general client reference and service information?

Yes

What are the key challenges or concerns that you are currently facing?

The Library is currently not facing any key challenges or concerns.

Do you use an investment advisor today? If so, how do you work with your current advisor? What is working well – things you would like to continue? Are there specific things you are looking for that you are not receiving today?

Yes. Future coordination and performance requirements are stated in the solicitation.

Can you please provide us the names and bios for the TFB Investment Committee?

The names of the Library’s TFB can be found in the Trust Fund Board report at https://www.loc.gov/about/reports-and-budgets/financial-statements/trust-fund-board/

What are the internal staff resources responsible for the oversight on the investment pools?

Internal staff are responsible for liaison activities to the Board, the Investment Committee, and the investment advisor.

They are also responsible for working with the Library’s account managers, reporting to the Treasury Department on accounting activities, and maintaining all documentation associated with activities of https://www.loc.gov/about/reports-and-budgets/financial-statements/trust-fund-board/ https://www.loc.gov/about/reports-and-budgets/financial-statements/trust-fund-board/ https://www.loc.gov/about/reports-and-budgets/financial-statements/trust-fund-board/ the TFB and IC.

Please confirm and/or clarify the difference in purpose and time horizon for each of the four pools:

i) Short-Term Investment Pool – required for use in 1-2 years

ii) Permanent Loan Treasury Pool – required for use in x-y years?

iii) Short-Term Income Pool – required for use in 3-5 years

iv) Growth and Income Pool – required for use beyond 5 years?

i) Short-Term Investment Pool – required for use in current year.

ii) Permanent Loan Treasury Pool – limited to only $10M, so the Library has internally identified the specific trust funds that may be invested in the PL pool. Some funds rely on the income from the PL pool for annual activities, while others are invested in PL for long term and reliable growth.

iii) Short-Term Income Pool – required for use in 1-2 years

iv) Growth and Income Pool – required for long term growth and maintaining purchasing power of initial donation.

What is the value of assets currently invested (NAV) in each of the four pools?

As of March 31, 2016, the Growth and Income pool had a market value of $117M, the Short Term Investment Pool had a market value of $6M, the Treasury pool had a market value of $15.7M, and the

Can you please provide a recent Annual Financial Report or other performance report so that we can understand the specific managers, funds/vehicles, and securities currently held in each of the investment pools?

You can find the 2014 Trust Fund Board report at https://www.loc.gov/about/reports-and-budgets/financial-statements/trust-fund-

What has been the actual payout percentage in each of the last 5 years (2011-2015) from each of the four investment pools?

The Library has not effected a payout from the Growth and Income pool in many years, mainly because there has not been a need to do so. The other pools do not have a “payout”, as firms may understand the term.

The 120 individual trust funds have been able to operate on the income generated from investments (dividends, capital gains).

What does the payout from each of the pools support (nature of the expense)?

The Library’s trust funds support a host of programs and initiatives, from supporting the US Poet Laureate to supporting music composition, to supporting acquisition of rare books, among many others.

What are the more pressing concerns or areas of uncertainty regarding each of the pools?

No concerns about the Treasury pool or the Permanent Loan pool. For Growth and Income and Short Term Income pools, the Library is interested in exploring more opportunistic/tactical, creative and proactive approaches to asset allocation and manager selection.

Can you please provide 1, 3, 5, and 10 year performance for each of the investment pools as of 12/31/2015.

Past performance information can be found in the Trust Fund Board report at https://www.loc.gov/about/reports-and-

Can you comment on ST and LT performance? Have you been happy with performance in each of the pools?

Past performance information can be found in the Trust Fund Board report at https://www.loc.gov/about/reports-and-

For the Growth and Income Pool, is the committee open to revisiting the current restrictions on investments as specified in the IPS section IV. E. Prohibited Investment Categories? For example, is the committee open to considering investments in high yield bonds, commodity funds, private investments, and/or certain hedge fund strategies such as long-short equity, credit, global multi-strat, event driven, and global macro? Please let us know if the committee is not open to revisiting the current restrictions.

The Library, as a federal agency, is subject to certain legal restrictions relating to the investment of public funds. Responses should adhere to current investment policies. Proposals may address how offerors intend to work with the Library after award to explore additional options or alternatives.

With respect to fixed income investments in each of the four pools, are investments in fixed income managers / funds permissible, or only investments in individual securities (i.e. individual bonds, notes, bills, CDs, etc.)?

Fixed income managers/funds are permissible.

Are investments in non-US equities and/or non-US fixed income permissible in any of the four pools?

Yes, the Library may investment in non-US equities and non-US fixed income.

Are there specific liquidity constraints or objectives for the Growth and Income Pool?

Constraints and objectives are outlined in the Investment Policy, which was included in the RFP.

What services are you receiving from your advisor today? Traditional (non-discretionary) investment advisory services.

In question B1 of the questionnaire, can you clarify "how active is your management approach toward this portfolio? Are you referring to: a) use of active vs. passive investments; b) the size and frequency of tactical tilts relative to policy; c) the frequency of rebalancing, d) use and monitoring of an explicit active risk budget; e) other?

The question refers to your b), c) and d), but the Library is also curious to learn your answer to a).

Can you clarify your definition of OCIO? More specifically, section C.3. Contractor Requirements calls for "recommendations". Is the investment committee considering a model where the IC fully delegates implementation decisions (tactical tilts from policy

The Library and IC are seeking to review proposals for both types of services (both discretionary and non-discretionary), and will make a decision about direction after https://www.loc.gov/about/reports-and-budgets/financial-statements/trust-fund-board/ https://www.loc.gov/about/reports-and-budgets/financial-statements/trust-fund-board/ allocations, manger hiring and firing decisions, etc.) to the advisor, or are they only considering models where the advisor makes implementation recommendations to the committee and the committee approves those recommendations or retains a veto power?

reviewing proposals.

In terms of performance reporting, do you require a single investment report that aggregates all of the pools as a single investment portfolio, or do you require performance reports for each of the individual pools? If you require separate reports for each pool, are any of the pools combined together for the purposes of performance reporting (for example, would the Short-Term Income Pool and the Permanent Loan Treasury Pool be combined for the purposes of performance reporting)?

The advisor is responsible for reporting on the Growth and Income and Short Term Investment pools, as both are comprised of private securities. The Library administers the Short Term Investment pool (US Treasuries) and Permanent Loan pool. The Library and IC would want an advisor to take into account performance and values of the other two pools when making recommendations for investments in the first two pools.

Who is the current custodian? How are assets custodied today for each pool? Are any investments custodied with the respective investment manager, or does the Library use a master custodian?

US Bank is the current custodial bank. The Library uses US Bank as a master custodian.

Your RFP requests four client references. Out of courtesy to our existing clients, we typically provide references once we have been selected as a finalist. Will it be acceptable to provide references at that point in time, or will the references be a key determining factor in the selection of finalists?

References are required for technically acceptable proposals.

What does your process and timeline for the search look like beyond the submission of the RFP by 4/28?

a)When will you narrow down the finalists?

b)Is there a date by which you anticipate a decision being made?

Anticipate awarding the contract in September, 2016