Questions_and_Responses_(Part_One)_-_PBGC01-RP-15-0013.pdf

Questions and Responses (Part One) Solicitation No. PBGC01‐RP‐15‐0013

Index Fund Investment Management Services

1. Question: Is this requirement anticipated to fulfill the same need as the previously released requirement for Emerging Market Equities Investment Management Services (Solicitation Number: PBGC01‐RP‐14‐0008)? Or are these two separate requirements?

Response: The Index Fund Investment Management Services (PBGC01‐RP‐15‐0013) and Emerging Market Equities Investment Management Services (PBGC01‐RP‐14‐0008) are two separate requirements and fulfill different needs.

2. Question: Is this a follow‐on requirement? If so, could you please provide the name of the incumbent and the contract number?

Response: Yes, this is a follow‐on requirement. The incumbent contractor is Black Rock Institutional Trust Company, National Association. The incumbent contract number is

PBGC01‐CT‐08‐0038.

3. Question: Can we submit this RFP with a third‐party Transition Management partner responding to the Transition Management section?

Response: No.

4. Question: What are the expectations for flows (size and frequency) into these funds? Would there be flows on a daily basis or less frequent?

Response: Flows into the funds typically occur once a quarter and are dependent on PBGC’s rebalancing needs and changes in PBGC’s manager line up. Recent flows have ranged from $400 million to $1 billion per quarter.

5. Question: We currently don’t run a Global Aggregate ex‐US (Hedged) Index fund. We do run a

Barclays Global Aggregate Index Fund, but it is not “hedged”. Is this sufficient for us to bid?

Response: No, this would not be sufficient to qualify unless the Offeror has existing funds benchmarked to all of the required equity indexes with the exception of the Dow Jones U.S.

Real Estate Securities Index. Please reference Section J.1 Attachment A Mandatory C.

6. Question: Is it possible to bid on either fixed income or equities? Or does this need to be an all‐inclusive bid?

Response: The bid is all‐inclusive and must include all of the required funds in both fixed income and equities. Please reference Section J.1 Attachment A Mandatory D.

7. Question: Regarding Section J.1 Attachment A Question B: The Offeror has a minimum of $120 billion in total passive indexed assets under management as of 12/31/2014.

Can offerors meet the intent of the RFP based on aggregated assets under management across its global organization to include affiliates?

Response: The Offeror must have a minimum of $120 billion in total passive indexed assets under management as of 12/31/2014. Assets managed by an affiliate shall not be used to qualify for this requirement.

8. Question: Responding to Section J.1 Attachment A Question C: The Offeror shall have existing products for either all of the required equity funds (with the exception of the Dow Jones U.S.

Select Real Estate Index Fund) OR all of the required fixed income funds (with the Barclays Global Aggregate Hedged Index being an acceptable replacement if the Offeror does not have an

Questions and Responses (Part One) Solicitation No. PBGC01‐RP‐15‐0013

Index Fund Investment Management Services existing Barclays Global Aggregate ex‐US Hedged Index Fund) as of 12/31/14. The Offeror must provide a list of their existing products that PBGC has required, with AUM levels as of 12/31/14, in order to satisfy this requirement. Will strategies with comparable indices satisfy the product requirement?

Response: The strategies must be benchmarked to the required indexes. PBGC will not consider strategies benchmarked to comparable indexes.

9. Section L – Instructions, Conditions, and Notices to Offerors – L.25 (p.126):

Section L.25 indicates that the PBGC is interested in obtaining pricing for passively managed index funds tracking 24 specific indices. If an offeror currently does not have an individual passively managed commingled fund that tracks the applicable index, would the PBGC be interested in obtaining pricing for: (i) a strategy comprised of a combination of passively managed commingled funds that, when viewed together, track the applicable index; and/or (ii) a separate account that tracks the particular index?

Response: Offerors are not required to provide pricing on all 24 index funds under section L. 25. Pricing may reflect existing products in either a separate account or commingled fund. Pricing may also reflect a newly created product. These prices are for informational purposes only and will not be evaluated.

10. Question: Attachment A: Section C, Statement of Work (Page 58). Would the PBGC consider awarding mandates to enhanced index strategies?

Response: No.

11. Question: The solicitation requires offerors to have at least $120 billion in total passive indexed assets. Is it possible to amend this requirement?

Response: No. The Offeror must have a minimum of $120 billion in total passive indexed assets under management as of 12/31/2014.