PBGC01-RP-09-0021 Amendment 01.pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT 1. CONTRACT ID CODE

2. AMENDMENT/MODIFICATiON NO. 3. EFFECTIVE DATE 4. REQUISITION/PURCHASE REQ. NO. 5. PROJECT NO. (If applicble)

7. ADMINISTERED BY (If other than Item 6) CODE

STANDARD FORM 30 (REV. 10-83)

Prescribed by GSA FAR (48 CFR) 53.243

FACILITY CODE

9A. AMENDMENT OF SOLICIATION NO.

9B. DATED

(SEE

ITEM

11)

10A. MODIFICATION OF CONTRACT/ORDER NO.

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

The 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.

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.

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.

15C. DATE SIGNED

15A. NAME AND TITLE OF SIGNER (Type or print)

16C. DATE SIGNED

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

6. ISSUED BY CODE

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

CODE

15B. CONTRACTOR/OFFEROR

(Signature of person authorized to sign)

16B. UNITED STATES OF AMERICA

(Signature of Contracting Officer)

NSN 7540-01-152-8070

Previous edition unusable

Solicitation Number: PBGC01RP090021 Amendment 01Response to Industry Questions

Question 1. Is this RFP available in a Microsoft Word format or another format allowing writable access?

Answer 1. RFP # PBGC01RP090021 is not available in a Microsoft Word format or any other format. Note: Refer to Federal Acquisition Regulation (FAR) site at http://www.acquisition.gov/FAR/ to locate information on Section

K REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF

OFFERORS

Question 2. Specifically, what instruments are considered derivatives for this request as mentioned on Page 74, Number 3, Letter E? Are currency forwards considered derivatives? Can you provide guidance as to what type of derivatives would be permissible under this mandate?

Answer 2. While PBGC does not have a standard definition of what instruments are considered derivatives, please answer this question assuming currency forwards are considered derivatives.

PBGC is interested in understanding what instruments you use in your strategy rather than limiting our options in permissible instruments.

Question 3. What type of computer disk is acceptable for submission of performance data? Is a CDROM an appropriate computer disk?

Answer 3. A CDROM would be appropriate.

Question 4. What version of Excel is preferred for submission of performance data?

Answer 4. Excel 2003 is preferred, but not required.

Question 5. Minimum requirement D.1. states that "The proposed product must have at least 5 years of live performance history as of 3/31/09."Our "International Large Cap Equity" strategy, the subject strategy for this RFP, currently has a 4.5 year track record. Its predecessor, the "International Equity" strategy, has a 15.5 year track record; however, as indicated, the strategy is closed due to its small capexposure/liquidity constraints. Both strategies are managed by the same portfolio management team and use the same investment approach, philosophy and process (the only difference being varied market capitalization restrictions). We would like to serve as an investment manager to the PBGC with our "International Large Cap" product, in addition to our "International Equity" product, and believe that our International Equity team's comprehensive track record will satisfy the requirements of this procurement. Will you confirm?

Answer 5. Mandatory Requirement D1 states, "The proposed product must have at least 5 years of live performance history as of 3/31/09 (simulated results are not acceptable)." It appears that the International Large Cap Strategy only has 4.5 years of live performance history as of 3/31/09 and does not meet this mandatory requirement. Therefore, it appears that a proposal for the International Large Cap Strategy would fail the mandatory requirements and would not be considered.

However, it appears the International Equity product may meet mandatory requirement D1.

Question 6. Minimum requirement B states that "The firm must manage at least US $2 billion as of 3/31/09 in the proposed active international equity strategy..."As of 3/31/09, our "International Equity" team managed $1.31B in the "International Large Cap Equity" strategy, the subject strategy for this procurement. As of 5/31/09, the team managed $2.30 B in "International Large Cap Equity".As of 3/31/09, our "International Equity" team managed $4.24 B across all products. As of 5/31/09, the team managed $5.85 B across all products. Both strategies are managed by the same portfolio management team and use the same investment philosophy and process. We would like to serve as an investment manager to the PBGC and believe that our International Equity team's comprehensive assets under management will satisfy the requirements of this procurement. Will you confirm?

Answer 6. The proposed strategy must have $2.0 Billion as of 3/31/09. The performance composite provided must be for the proposed strategy. Aggregating the assets under management for different products managed by the same team is not acceptable.

Question 7. Minimum requirement D.3. states that "The average of all rolling 60month information ratios... must be .40 or greater..."The average of all rolling 60month information ratios for our "International Equity" strategy is greater the .40 required; however, because our International Large Cap strategy has a 4.5 year track record, we are unable to determine the average of all 60month information ratios for this strategy. Our "International Large Cap

Equity" strategy's 36month rolling information ratio since inception is .59, satisfying the stated requirement. We would like to serve as an investment manager to the PBGC and believe that our International Equity team's comprehensive track record will satisfy the requirements of this procurement. Will you confirm?

Answer 7. The International Large Cap Equity's 36month rolling information ratio would not meet this mandatory requirement.

Question 8. The RFP does not indicate if there is a preference with respect to investment style (core, growth or value). Does the PBGC have a preference?

Answer 8. This is a Core international equity search.

Question 9. How many managers do you anticipate hiring?

Answer 9. PBGC anticipates hiring multiple managers.

Question 10. Does the PBGC require a tracking error target or can a range be established for the account?

Answer 10. Please answer the questions in the questionaire that detail your proposed product's tracking error target. A tracking error range is an acceptable answer.

Question 11. For the information ratio calculation in the minimum requirements (Attachment A.D.3), which methodology would you prefer: the average of 120 of monthly (10yrs) 60 month rolling information ratios (which would be including a total of 15 years of monthly returns) OR are you looking for the average 60 data points (which includes a total 10 years of monthly returns)? We have provided an example below.

Option 1 Average information ratio of the following 120 time periods:

4/1/94 3/31/99

5/1/94 4/30/99

3/1/04 2/28/09

4/1/04 3/31/09

OR

Option 2 Average information ratio of the following 60 time periods:

4/1/99 3/31/04

5/1/99 4/30/04

3/1/04 2/28/09

4/1/04 3/31/09

Answer 11. Option 2 appears to meet the mandatory requirements since product inception is longer than 10 years. The mandatory states, "The average of all rolling 60month information ratios for the past 10 years or since product inception, whichever is shorter, through 3/31/09."

Question 12. I wanted to clarify under section G.3 Submission of invoices. Is it possible to bill quarterly instead of monthly?

Answer 12. Invoices can be billed quarterly.

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