RFP for DB Investment Consultant_FINAL_w_Appendices (8.29.2025).pdf

OAKLAND COUNTY EMPLOYEES’ RETIREMENT SYSTEM

AND

OAKLAND COUNTY VEBA

REQUEST FOR PROPOSAL FOR

DEFINED BENEFIT PLAN

INVESTMENT CONSULTING SERVICES

ISSUE DATE: September 2, 2025

PROPOSAL DEADLINE: October 10, 2025 @ 3:00 p.m.

CONTACT: Carly Webster, Retirement Administrator

Sealed Proposals are due by 3:00 pm on October 10, 2025, and must be delivered to the Oakland County Retirement and Deferred Compensation Board, Attn: Carly Webster, 2100 Pontiac Lake Rd., Bldg. 41W, Waterford, MI 48328. Mailed proposals should allow normal mail delivery time to ensure timely receipt of their proposal. Sealed proposals must be in the actual possession of the Retirement Board on or prior to the exact date and time indicated above.

OAKLAND COUNTY EMPLOYEES’ RETIREMENT SYSTEM

OAKLAND COUNTY VEBA

REQUEST FOR PROPOSAL (RFP)

RE: DEFINED BENEFIT INVESTMENT CONSULTING SERVICES

I. INTRODUCTION

A. Purpose

The purpose of this RFP is to solicit proposals from qualified investment consulting firms who can provide general investment consulting services in accordance with the specifications outlined in this RFP. The selected investment consultant will serve as a fiduciary to OCERS and the VEBA and will be required to provide objective, third-party advice and counsel that will enable the Retirement Board to make educated and informed decisions regarding the investment of OCERS and VEBA assets.

B. Retirement System

The Oakland County Employees’ Retirement System (OCERS) is a single employer defined benefit public employee retirement system established by Oakland County, Michigan (the “County”) on January 1, 1946, under the authority of Section 12a of Act 156 of 1851, as amended (MCL 46.12a). OCERS is a qualified plan and trust under Section 401(a) of the Internal Revenue Code that provides pension benefits to over 1,900 active and retired employees of the County, and their eligible beneficiaries. As of June 30, 2025, OCERS had fund assets totaling approximately $665 million in market value. OCERS was 96.9% funded, on an actuarial basis, as of September 30, 2024.

C. VEBA

The Oakland County VEBA (the “VEBA”) is a single employer Voluntary Employees’ Beneficiary Association established by the County on October 1, 2000, under the authority of Act 149 of 1999, as amended (MCL 38.1211 et seq.). The VEBA is a qualified plan and trust under Section 501(c)(9) of the Internal Revenue Code that provides health and welfare type benefits to over 4,000 active and retired employees of the County, and their eligible beneficiaries. As of June 30, 2025, the VEBA had fund assets totaling approximately $1.6 billion in market value. The VEBA was 149.4% funded, on an actuarial basis, as of September 30, 2024.

D. Board of Trustees

OCERS and the VEBA are managed and administered by a Board of Trustees (the “Retirement Board”) comprised of nine (9) members, as follows:

The Chairperson of the County Board of Commissioners, or his/her designee;

The Chairperson of the Finance Committee, or his/her designee;

The County Treasurer, or his/her designee;

The County Executive, or his/her designee;

Three (3) elected employee members;

One (1) elected retiree member; and One (1) citizen member appointed by the Retirement Board and confirmed by the Board of Commissioners.

The Retirement Board has the statutory authority for the selection of an investment consultant under Section 13(5) of the Public Employee Retirement System Investment Act, Act 314 of 1965, as amended (MCL 38.1133(5)) (hereinafter, “Act 314”). The applicable OCERS and VEBA plan documents also acknowledge the Retirement Board’s authority to retain professional and expert services as contemplated in this RFP.

E. Investments

A primary responsibility of the Retirement Board is to oversee the investment of OCERS and VEBA funds that are used pay benefits to the eligible retirees and beneficiaries. The Retirement Board has established an Investment Subcommittee to assist with the investment and management of the assets of OCERS and the VEBA. The Subcommittee is responsible for making recommendations to the Retirement Board with respect to the overall investment policies and guidelines of OCERS and the VEBA, and with respect to the retention and termination of external investment management firms that invest OCERS and VEBA assets in accordance with their respective mandates. Neither OCERS nor the VEBA currently manages any investments internally.

As outlined in the OCERS and VEBA Investment Policy Statements (attached hereto as Appendix A), the Retirement Board has elected to assume moderate levels of risk in pursuing each plan’s investment program. The most recent asset liability and asset allocation studies were conducted in 2022. The resulting strategic portfolio allocations are as follows:

1. OCERS

Asset Class Minimum Target Maximum Domestic Equity 10.0% 35.0% 50.0% International Equity 5.0% 15.0% 20.0% Core Fixed Income 10.0% 27.0% 35.0% Non-Core Fixed Income 0.0% 8.0% 10.0% Real Estate 0.0% 10.0% 15.0% Private Equity 0.0% 5.0% 20.0% Cash 0.0% 0.0% 10.0%

A detailed breakdown of OCERS’ asset allocation by manager as of June 30, 2025, is attached as Appendix B. OCERS’ current rate of return assumption is 7% per year. For the fiscal year ended September 30, 2024, OCERS generated a return of 18.34% net of fees.

2. VEBA

Asset Class Minimum Target Maximum Domestic Equity 10.0% 35.0% 50.0% International Equity 5.0% 12.0% 20.0% Core Fixed Income 20.0% 32.0% 45.0% Non-Core Fixed Income 0.0% 8.0% 10.0% Real Estate 0.0% 8.0% 15.0% Private Equity 0.0% 5.0% 20.0% Cash 0.0% 0.0% 10.0%

A detailed breakdown of the VEBA’s asset allocation by manager as of June 30, 2025, is attached as Appendix C. The VEBA’s current rate of return assumption is 6.75% per year.

For the fiscal year ended September 30, 2024, the VEBA generated a return of 17.55% net of fees.

F. Amendment / Cancellation / Waiver of Non-material Errors

The Retirement Board may amend this RFP at any time, in its sole judgment and discretion, and reserves the right to cancel this RFP at any time and to waive non-material errors and technicalities with respect to all responses.

II. GENERAL PROVISIONS

Any contract awarded as a result of this RFP will include the general terms and conditions provided below. Subcontractors, if any, are also required to comply with these provisions.

A. Contract Term

The awarded contract shall be for a term of five (5) years and may be terminated by the Retirement Board at any time. Prior to the conclusion of the five-year contract term, the Retirement Board will conduct appropriate due diligence in accordance with its Professional Advisor & Service Provider Review Policy and may elect to renew or renegotiate the existing Investment Consulting Services Agreement or enter into a new agreement with another investment consulting firm.

B. Fiduciary Status

The selected consultant must acknowledge and agree that it is an investment fiduciary under Act 314, and that it will discharge its duties under the contract with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a similar capacity and familiar with those matters would use in the conduct of a similar enterprise with similar aims.

C. Personnel

The selected investment consultant shall assign only qualified personnel under the contract. At least one individual consultant shall be designated to travel to all Retirement Board and Investment Subcommittee meetings, at the consultant’s expense. The consultant may also be required to periodically participate in an evaluation of the consultant and the personnel assigned under the contract. As part of the evaluation process, consultant may be required to complete a questionnaire and/or attend one or more meetings to discuss the consultant’s operations and performance.

Consultant, in its reasonable discretion, may reserve the right to substitute appropriate key personnel to accomplish its obligations under the contract so long as the substituted personnel are equally qualified and skilled in the tasks necessary to accomplish the tasks and services required.

The consultant shall provide the Retirement Board with written notice of any proposed changes in key personnel involved in providing services under the contract.

D. Confidentiality and Open Records

The consultant shall agree to maintain the confidentiality of information received from OCERS and the VEBA during the performance of services under the contract. Consultant understands and acknowledges that OCERS and the VEBA will comply with the Michigan Freedom of Information Act, as amended, Act 442 of 1976 (MCL 15.231 et seq.) and the Michigan Open Meetings Act, as amended, Act 267 of 1976 (MCL 15.261 et seq.), as interpreted by judicial opinions and opinions of the Attorney General of the State of Michigan. Accordingly, the awarded contract and all data and other information generated or obtained in its performance may be subject to public disclosure in accordance with the foregoing laws.

E. Insurance

Consultant represents and warrants that it will, within ten (10) business days of executing the contract, provide OCERS and the VEBA with certificates of insurance or other acceptable proof of the following insurance coverage: (1) standard Workers Compensation insurance covering all personnel who will provide services under the contract; (2) Errors and Omissions insurance; and

(3) Commercial General Liability insurance. The foregoing insurance coverages shall be maintained during the term of the contract.

F. Indemnification

The selected consultant shall defend, indemnify, and hold harmless OCERS and the VEBA, the Retirement Board, and staff from and against all claims, actions, suits, demands, proceedings, costs, damages, and liabilities, including without limitation attorneys’ fees and court costs, arising out of, connected with, or resulting from any acts or omissions of the consultant or any agent, employee, or subcontractor in the execution or performance of the contract.

G. Applicable Law and Venue

The awarded contract will be governed by and construed in accordance with the laws of the State of Michigan. The venue of any suit arising under the contract shall be limited to any court of competent jurisdiction of Oakland County, Michigan.

H. Sovereign Immunity

Nothing in the awarded contract shall be construed as a waiver of the sovereign or governmental immunity afforded to OCERS, the VEBA, the Retirement Board, and staff under applicable state and federal laws.

I. No Conflicts

The selected consultant shall affirm that it has no actual or potential conflicts of interest in providing services to OCERS and the VEBA and that consultant’s provision of services under the contract will not reasonably create the appearance of impropriety.

J. Financial Interests / Gifts

The selected consultant shall represent and warrant that neither it, nor any person or entity that will provide services under the contract, has received compensation from OCERS, the VEBA, or the County for participation in the preparation of specifications for the contract. The consultant shall further represent and warrant that it has not given, offered to give, and does not intend to give at any time hereafter, any economic opportunity, future employment, gift, loan, gratuity, special discount, trip, favor, or service to any member of the Retirement Board or staff, or to any County employee in connection with the award of the contract.

III. SCOPE OF SERVICES

The Retirement Board is seeking non-discretionary, full-service, general investment consulting services via this RFP. Responses submitted for other services such as Outsourced Chief Investment Officer (OCIO) services, discretionary consulting services, or specialist advisor services may not be considered.

The Investment Consultant will provide independent, unbiased, proactive research, information, and advice to the Retirement Board and staff, and will work with the Retirement Board and staff to advise and monitor on any and all investment related matters and compliance with OCERS and the VEBA’s Investment Policy Statements. The Investment Consultant will also be expected to attend regular monthly Retirement Board meetings and other meetings and events as necessary.

By responding to this RFP you acknowledge and confirm your ability to offer the services listed below. Contractual services for investment consulting will include, but not be limited, to the following:

1. ASSIST THE RETIREMENT BOARD IN FULFILLING ITS FIDUCIARY DUTIES

• Provide services as an investment fiduciary in accordance with all applicable federal and state laws and regulations, as well as with all applicable professional codes and regulations.

• Provide unbiased, transparent, conflict-free advice and opinions to the Investment Subcommittee and Retirement Board on all investment recommendations.

• Assist in the development of strategic and tactical asset allocation recommendations which are approved by the Retirement Board.

• Assist in the development of investment policies, reporting, strategic planning, and pacing analysis for private market investments.

• Report in-person to the Investment Subcommittee and Retirement Board meetings and as otherwise requested on the status of the OCERS and VEBA funds and their multi-period, net of fees performance.

• Assist in the development and amendment of investment related policies, procedures, guidelines, and performance measurement standards, including private markets.

• Provide objective research, information, and advice on investment topics, strategies, and investment managers when requested by the Retirement Board or Investment Subcommittee, or when considered relevant by the consultant.

• Prepare and conduct overview presentations or educational workshops on markets and investment strategies and sub-strategies that include a macro view of key managers, types of investments, trends, and key success factors.

• Monitor, evaluate, and communicate investment portfolio and manager performance as appropriate on an ongoing basis including written monthly and quarterly reports.

• Recommend to the Retirement Board and Investment Subcommittee the retention, additional investment in, redemption, or termination of investment managers.

2. SUPPORT IN DEVELOPMENT AND IMPLEMENTATION OF STRATEGY

• Provide access to a robust suite of investment manager research and other tools that are helpful in constructing portfolios and managing the OCERS and VEBA funds.

• Conduct style factor analysis to support manager selection, portfolio construction and asset allocation decisions.

• Conduct risk budgeting analyses at the portfolio, asset class, and fund levels.

• Provide input on key implementation decisions related to carrying out the decisions of the Retirement Board.

• Conduct fee analysis to help the Retirement Board obtain the best possible fee terms.

• Apprise the Retirement Board of ongoing developments in the portfolios related to markets, asset classes, and/or investment managers.

• Collaborate with the Retirement Board and/or Investment Subcommittee on the due diligence of potential or existing investment managers.

• Deliver useful and informative written updates on economic and capital markets conditions at least monthly.

• Provide analysis and other support as required to assist in the preparation and production of the plans’ annual actuarial valuations.

• Support reconciliation of manager performance with fee invoices to ensure accuracy.

3. INVESTMENT POLICIES AND ASSET ALLOCATION

• Work with staff and actuary to understand OCERS and VEBA liabilities.

• Conduct asset liability studies every three to five years, or as needed with changes in benefits or funding policies, or significant deviations from actuarial assumptions (experience study), as a means to help gauge the long-term health of the plans and the desired investment strategies.

• Conduct an annual comprehensive review and analysis of OCERS’ and the VEBA’s investment policies, including strategic asset allocation and recommended changes, if appropriate.

• Assist in developing an appropriate investment management structure for the funds and each asset class that provides adequate diversification, considering the role of active versus passive management, management styles, and the advisability of various management structures under different market conditions.

• Provide assistance in analyzing the investment characteristics of available asset classes and the risk/return potential of alternative asset mixes.

• Provide information on new investment ideas and assess the application of these ideas with regard to the risk/return targets.

4. MANAGER SELECTION AND MONITORING

• Assist in establishing appropriate qualitative and quantitative selection criteria for reviewing potential candidates and conducting manager searches.

• Provide monitoring and ongoing due diligence of current investment managers.

• Identify and screen potential investment manager candidates, including those requested by the Retirement Board or its Investment Subcommittee.

• Perform comprehensive due diligence including onsite investment and operational due diligence.

• Monitor and advise the Retirement Board of any compliance rule violations or other operational concerns related to existing managers.

5. PERFORMANCE EVALUATION AND ANALYSIS

• Facilitate the development and selection of appropriate performance benchmarks and policy benchmarks for each asset class and each manager.

• Provide timely, comprehensive quarterly performance analysis, attribution analysis, risk analysis, and peer analysis of the individual managers, composites, and total fund.

• Evaluate manager performance and consistency relative to peers, mandate, the investment guidelines, and established benchmarks.

• Conduct ongoing discussions with managers and investment performance and organizational issues (such as changes in ownership, staff, new products, etc.).

• Assist in enhancing the existing manager review process and advise on manager surveillance, retention, and termination.

• Help evaluate any underperformance or irregular performance of managers.

6. PERIODIC ATTENDANCE AT MEETINGS

• Attend Retirement Board (8 per year) and Investment Subcommittee meetings (as needed), to review performance, assess the overall investment program, and make recommendations.

• Consult with staff, as needed, to provide information and ensure completion of tasks.

• Provide education on various investment issues.

7. MONITOR COMPLIANCE WITH ACT 314

• Monitor compliance with Act 314’s investment restrictions and asset limitations of the individual managers, composites, and total fund.

• Provide compliance reporting to the Retirement Board no less frequently than quarterly.

8. CASH FLOW AND LIQUIDITY

• Monitor monthly cash flows and liquidity needs and provide rebalancing recommendations, as needed, in accordance with the plans’ needs.

• Assist staff with the reconciliation of cash flow payments to and from private market investments, including capital calls.

• Advise the Retirement Board and staff in the creation and maintenance of a liquidity account to ensure adequate coverage of liquidity needs.

IV. MINIMUM QUALIFICATIONS

The consultant must meet all of the following minimum qualifications to be given further consideration. Failure to satisfy each of the minimum qualifications will result in the disqualification of a proposal.

1. The consulting firm must be a registered investment advisor under the Investment Company Act of 1940 and/or the Investment Advisers Act of 1940.

2. The consulting firm must have been in business at least five (5) years.

3. The firm must have a minimum of $10 billion in total assets under management of which at least two clients are institutional clients with assets of at least $500 million.

4. The primary consultant assigned to the OCERS account must have a minimum of five (5) years’ experience, and have provided general investment consulting services to at least two other public defined benefit retirement plans.

5. Respondents may not currently be providing investment management services to OCERS or the VEBA (does not include investment consulting).

6. The consulting firm must be able to maintain a data processing interface with OCERS’s custodial bank by on-line connection or other electronic means.

7. The consulting firm must agree to disclose all conflicts of interest, all sources of revenue, and all affiliations.

V. PROPOSAL DEADLINES, FORMAT, AND INFORMATION

A. Tentative Schedule

The solicitation process for this RFP is anticipated to proceed according to the following schedule:

RFP Approval August 28, 2025 Issuance September 2, 2025 Intent to Respond Deadline September 16, 2025 Deadline for Submission of Questions September 16, 2025 Responses to Questions Provided September 30, 2025 Deadline for Submission of Proposals October 10, 2025 Proposal Opening October 10, 2025 Review/Evaluation of Proposals Oct./Nov. 2025 Finalist Interviews Nov/Dec. 2025 Selection December 2025 Contract Execution January 1, 2026

The Retirement Board reserves the right to change the dates in the foregoing schedule without notice.

B. Proposal Requirements

1. Intent to Respond. The Intent to Respond Notice (Addendum A) must be submitted via email to websterc@oakgov.com no later than 5:00 pm Eastern Daylight Time (EDT) on September 16, 2025

2. All proposals must be organized as follows:

a. Title Page: Please indicate the RFP subject, the name of your organization, address, telephone number, name of account officer, name of contact person and date.

b. Table of Contents: Clearly identify the material by section and page number.

c. Letter of Transmittal: Limit to one or two pages.

i. Briefly state your organization's understanding of the nature of the work.

ii. Give the names of the persons who will be authorized to make presentations for your organization, their titles, addresses, and telephone numbers.

iii. Certify that you meet minimum qualifications and will meet the scope of services.

iv. Confirm whether your company can provide the services listed in Scope of

Services and provide the fees for providing such services.

v. Highlight any unique characteristics of your organization that you believe should be considered by the Retirement Board.

d. Questionnaire: A complete response must include answers to each question posed in

Section VII.

e. Sample Performance Report: Provide a sample quarterly performance report.

mailto:websterc@oakgov.com

3. Submit one electronic copy of your response via USB drive, and submit five (5) complete hard copy sets of your proposal in a sealed package to:

RFP: Investment Consultant Services (DB) Oakland County Employees’ Retirement System & VEBA Attn: Carly Webster, Retirement Administrator 2100 Pontiac Lake Rd., Bldg. 41 W Waterford, MI 48328-0440

Clearly identify on the outside of the sealed proposal package with the proposer’s name, return address, and the statement: “Response to RFP, DB Investment Consultant – 2025.”

C. Questions

1. The authorized contact person for this RFP is Carly Webster, Retirement Administrator.

2. Questions about the RFP must be submitted in writing by email to websterc@oakgov.com no later than 5:00 pm EDT on September 16, 2025.

3. All questions received by the deadline will be answered in writing and without divulging the source of the inquiry. A copy of all questions and the corresponding responses will be sent, via email, to all parties who indicate an intent to respond to the RFP.

4. Except as otherwise provided herein, no other questions or discussion regarding the contents of this RFP will permitted.

D. Quiet Period / No Contact

Actual and prospective respondents (including their representatives or agents acting on their behalf) are prohibited from contacting members of the Retirement Board in any manner regarding this RFP. All inquiries regarding the RFP shall be directed as indicated above. This communication restriction exists from the date that the RFP is issued until the contract is awarded.

These communication restrictions shall not apply to:

1. The Retirement Administrator who is identified within the RFP as the primary contact and is responsible for responding to prospective applicant or bidder questions;

2. Communications by a firm under contract to provide services to another client to which a member of the Retirement Board is affiliated, where the communication is made formally to such client and relates to the services for which the firm has been retained; and

3. Communications by the incumbent consulting firm and its employees relating to the provision of investment consulting services to the Retirement Board.

VI. PROPOSAL EVALUATION

A. Pre-Evaluation Review

1. Each proposal package will be date and time-stamped when received. Proposals received after the response deadline specified herein will not be considered.

2. Each proposal package will be inspected to ascertain that it is properly sealed and labeled. Proposals not passing this inspection may be rejected.

3. All proposals will be preliminarily evaluated to determine if they satisfy the minimum qualifications specified in Section IV of this RFP and contain all the required information outlined in Section V. Proposals that fail to meet the foregoing requirements may be rejected.

B. Evaluation Criteria

1. The Retirement Board may consider any and all information related to the Respondent and its proposal.

2. While cost is an important consideration, the Retirement Board is not required to award contracts solely on the basis of quoted fees.

3. It is anticipated that a multitude of factors will be considered as will be evident to bidders from the questions contained in this RFP. Key factors that will be contemplated during the evaluation process will include, without limitation:

a. Dedication to exemplary standards of transparency, objectivity, and independence.

b. Alignment of the firm’s core investment beliefs with those of the Retirement Board.

c. Professional reputation as evidenced by references, thought leadership, etc.

d. Focus, reliability, responsiveness, and professionalism of the client services team.

e. Industry thought leadership as evidenced by white papers or other forms of advocacy.

f. Depth of experience working with public plans similar to OCERS and the VEBA.

g. Ability to communicate effectively in both written and oral formats.

h. Client education, both at meetings and through sponsored events/conferences/symposia.

i. Proven ability to admit error or misjudgments and to make necessary adjustments.

j. Depth, expertise, and track record of research teams/personnel.

k. Ability to quantify results and claims made in RFP responses and oral presentations.

l. Compliance with all minimum required qualifications.

m. Transparency of organizational business activities and management of potential conflicts of interest.

n. Success in developing client-focused allocation strategies and portfolio design.

o. Ability to assist in development of investment policies, reporting, strategic planning, and pacing analysis for private market investment activities.

p. Ability to help Trustees discern major secular investment and economic trends.

q. Ability to adjust portfolio structures proactively amid evolving market conditions.

r. Portfolio risk management analytics, recommendations, and strategies.

s. Investment performance of comparable institutional clients.

t. Historical alpha of active managers recommended to other institutional clients.

u. Rigor and usefulness of performance analytics and performance reports.

v. Success in identifying managers with strong performance after selection by clients.

w. Success in timely elimination of unstable and underperforming managers.

x. Ability to secure lower fees for clients through portfolio design and negotiation.

y. Overall fee structure and portfolio efficiency of comparable public plan clients.

z. Familiarity with Act 314 and other statutory requirements and limitations imposed on

Michigan public plans.

4. The Retirement Board will consider the extent to which the above criteria and all related claims are demonstrated, documented, and substantiated in the proposal and subsequent presentations, if any. While these data points may be considered by the Retirement Board, there is no predetermined mechanical formula contemplated for weighing fees against other criteria.

5. The Retirement Board may reject any proposal for any reason.

6. The Retirement Board reserves the right to cancel this RFP at any time.

7. The Retirement Board reserves the right to waive any irregularities contained in a proposal.

8. During evaluation, a Retirement Board representative may contact Respondents and seek clarification regarding the Respondent’s proposal. Respondents must respond to such requests within the time and manner specified in the specific request.

9. The Retirement Board will determine if best and final offers are necessary. A request for best and final offers is at the sole discretion of the Retirement Board and will be extended in writing. Award of a contract may be made without extending a request for best and final offers.

10. The Retirement Board, in its sole discretion, may elect to have Respondents provide onsite presentations in Oakland County, Michigan, to discuss their proposals and respond to questions.

VII. QUESTIONNAIRE

A. Firm Information

1. Name of your firm, its address, telephone number, and primary contact for the request for proposal. Give the names of the persons who will be authorized to make presentations for your organization, their titles, addresses, and telephone numbers.

2. Is your organization a subsidiary, parent, or affiliate of any other firm? If so, please describe in detail. Additionally, do any of the affiliates provide any other retirement fund services such as investment management, custodial banking, brokerage, or actuarial work? If you (and/or your affiliate) provide more than one service, how do you protect against conflicts of interest? Have you ever included your own firm, subsidiary or sponsored investment vehicle in a manager search you are conducting?

3. Please provide the percentage of total revenues that come from the categories listed below for each corresponding year:

Categories 2024 2023 2022 DB Plan non-discretionary consulting services % % % DC Plan non-discretionary consulting services % % % OCIO/Discretionary consulting services % % % Investment management services % % % Other (please describe) % % %

4. What is your firm’s mission statement? What is your firm's strongest area of expertise?

5. What is your firm’s target market in terms of fund size and type (e.g., public/private plans, DB/DC plans, foundations, endowments, etc.)?

6. What is the number of full-time employees in your firm? How many professionals have left your company in the last 3 years?

7. Explain how the firm controls the quality of services provided to clients. What is the average number of clients assigned per consultant?

8. Within the last 3 years, have there been any significant developments in your company such as changes in ownership, restructuring, personnel reorganization, acquisitions, mergers?

Do you anticipate significant changes to your organization in the future?

9. Please provide the address of your corporate headquarters as well as the location of your nearest office in proximity to OCERS and the VEBA?

10. Describe your firm’s approach to workplace diversity, equity, and inclusion and how it relates to your company.

11. What public funds experience do you have? Provide a list of all public pension fund and other public fund clients under contract to date.

12. If you have lost any clients in the last 3 years, please explain.

13. Please explain size, composition, and source of your performance measurement data base. What indices are used for relative comparisons? If you do not maintain databases, whose (or what) database do you use?

14. Please describe your familiarity with and experience advising clients subject to the Michigan Public Employee Retirement System Investment Act, Public Act 314 of 1965.

15. Why is your firm uniquely qualified to service our account?

16. Disclose formal and informal business relationships with investment managers or other service providers to pension trust funds.

17. Provide as an attachment to your response a complete copy of your most recent form ADV as filed with the SEC.

B. Consulting Team

1. Submit biographical profiles on the individual(s) who will be assigned to our account.

Also, indicate where these individuals are located, and who will attend Retirement Board meetings. Do the individuals have any responsibilities other than providing consulting services, and if so, please specify.

2. How many senior people have left your company in the last three (3) years? How many support staff have left your company in the last three (3) years? Be specific as to experience, performance measurement, manager search, investment policy consulting.

3. How are individual consultants’ recommendations to clients reviewed and monitored by your organization? Please describe your peer review process for routine client services, such as performance reporting.

4. Describe your organization’s backup procedures in the event that key personnel should leave the firm or be unable to service the OCERS and VEBA accounts. Please provide your company’s retention rates for your investment consultants over the past five years.

5. Describe the team’s experience with similar work performed for other public pension and retiree health care funds or similarly situated institutional investors.

C. Investment Policy / Asset Allocation

1. Provide an outline of the principal steps you would follow when developing a statement of Investment Policy and Objectives. Does your investment policy and asset allocation analysis fully integrate liabilities with assets? How do you interface with the actuary?

2. Provide an outline of the issues and items that would be covered in a typical investment policy statement. What is your approach with respect to the applicable Act 314 legal parameters/restrictions under which OCERS and the VEBA must operate?

3. What is your approach to development of asset allocation guidelines? Please describe this process in detail, including application of major variables (e.g., risk tolerance, emerging liabilities, time frames, etc.).

4. How often do you recommend a formal review of asset allocation policies?

5. What geographic areas of the world do you consider appropriate for investments?

6. Does your approach include passive strategies such as indexation? If so, please describe your firm’s approach on the use of active versus passive management in the public asset classes.

7. What are your firm’s capabilities and experience with illiquid or less liquid investments such as real estate, private equity, and other alternative investments? Include factors considered in recommending these asset classes, your approach to benchmarking such investments, and the elements of a due diligence process for assessing the risk control and performance characteristics of these asset classes.

D. Investment Manager Selection and Oversight

1. Describe your investment manager database and your process of gathering and maintaining the data collected. How many firms do you track for manager search purposes?

How many managers have made final presentations from the total search data base in the past 24 months?

2. What procedure and criteria do you follow in the selection of investment managers?

How long might the process take from start to finish? Please describe, in detail, the optimal role that your firm would like to take in manager presentations to the Retirement Board.

3. Do the consultants who would be assigned to our account actually interface with prospective managers? How much time do they spend in an average week interviewing managers? How many managers a week do our assigned consultants see? Is due diligence performed at all managers’ offices? If so, please explain your due diligence process. How are consultants apprised with respect to developments about managers?

4. What tools and decision-making process(es) do you utilize to screen investment managers?

5. Please explain how you would handle reviews of new and existing real estate, private equity, and other alternative investments.

6. Please explain how you would handle specific requests from the Retirement Board or Investment Subcommittee to conduct due diligence on a prospective investment manager.

7. How do you monitor your success in selecting managers? Explain how you measure the level of success of existing managers. Please be specific.

8. What criteria are used to recommend termination of a manager? Do you have a watch list for managers you deem to be unsuccessful? How long are they on the watch list before termination?

9. Please explain how the Retirement Board should evaluate and define the success of your consulting services. Do you believe that when a manager is not performing, including failing to accomplish the performance level projected in the manager’s pitch book, that the consultant who presented this manager also be held accountable? If so, how?

10. Do you have any affiliations, relationships, or arrangements with broker-dealers under which you or a related company will benefit if money managers place trades for their clients with such broker-dealers?

11. Does your organization, any affiliate, or any individual employed by your organization or an affiliate pay or receive compensation, finder’s fees, or any other benefit from investment managers or third parties? Please describe.

E. Performance Evaluation and Reporting

1. Specifically describe your performance evaluation system and the philosophy behind it.

Is your system proprietary or did you obtain it from another supplier? What factors do you consider to be critical in reporting performance?

2. Please explain how you evaluate the performance of investment managers for traditional asset classes and alternative/real estate investment managers.

3. How soon following the end of the reporting period can you have copies of performance evaluation reports to the Retirement Board?

4. Provide a sample of the report(s) you would submit to the Retirement Board. How much variation is available from your standard report? What other reports do you offer?

5. Are all performance reports compliant with AIMR Performance Presentation Standards?

GIPS?

5. Describe and illustrate any special indices which your firm has constructed. Are you able to provide custom benchmarks and peer universe rankings? Provide information on the composition of the overall fund universe that you utilize, as well as the universe you would use for OCERS and the VEBA, if different.

6. Do you have the capability of using rates of return calculated by the plans’ custodial bank in your performance evaluation reports? Do you calculate performance independent of the custodian? If so, do you reconcile your calculated performance with investment managers’ and custodian reports? If yes, please describe.

7. How are performance benchmarks for the total fund, asset classes, and individual managers chosen, constructed, and evaluated?

F. Research

1. Describe the internal structure and organization of your research department. If no separate department exists, describe how this function is performed at your firm.

2. Describe the method in which external resources and sources of information are used in the research process. How does your firm integrate internal and external research?

3. Describe your firm's capabilities and resources related to alternative investments and analysis (public and private markets).

4. Describe your firm's process for monitoring industry and market trends affecting DB plans and their investment strategies, and provide your outlook on current trends and challenges in the DB industry.

5. Please describe your firm’s use of Artificial Intelligence (AI).

G. Standards of Conduct

1. Does your firm have a written code of conduct or ethics policy? If so, how is compliance monitored and enforced? Has your firm adopted the CFA Institute’s Code of Ethics and Standards of Professional Conduct?

2. Please provide all complaints regarding you and your firm made with any governmental regulatory body together with a resolution of those complaints.

3. Has your firm or any individual officer or employee been the subject of a non-routine SEC investigation within the last ten (10) years? If so, please provide as much detail as possible regarding the specific circumstances and resolution.

4. Has your firm been involved in litigation within the last five years or is there any pending litigation arising with respect to your consulting services? If your answer is yes, explain fully.

5. Has your firm ever been required to pay damages or penalties under any of its existing or former contracts for consulting services? If so, describe the situation.

6. How does your firm identify and manage conflicts of interest? Are there any potential (perceived or actual) conflicts of interest your firm has or may have in providing the services contemplated under this RFP? If so, describe them.

7. Please provide detailed disclosures relating to any lines of business your firm, affiliates, or parent company performs, other than investment consulting.

8. In the last five years has your firm, or anyone in your firm, provided gifts, travel, entertainment, meals, or any other payments (e.g., salary/wages, political contributions, service fees, etc.) to any current or former member of the Retirement Board, any current or former member of the Oakland County Board of Commissioners, the Oakland County Executive, the Oakland County Treasurer, or any other County elected official? If yes, describe the circumstances in as much detail as possible.

9. List and describe any professional relationship(s) you have had with OCERS, the VEBA, or the County during the past five years.

10. Please identify and describe any past or existing relationships with any member of the Retirement Board, any elected County official, or any Retirement System and VEBA staff members.

H. Subcontracting

1. If your firm utilizes the services of subcontractors in the performance of consulting services, please identify all such subcontractors and describe the skills and qualifications of each subcontractor and their employees. Please clearly state if you do not use subcontractors in your consulting business.

2. Describe what percentage of the relationship will be assigned to subcontractors, if any.

3. If your firm uses subcontractors, confirm that you will accept all liability and indemnify OCERS, the VEBA, and Retirement Board for the acts or omissions of any agents, subcontractors, or other entities that your firm may use in the performance of services to OCERS and the VEBA.

I. Other Services

1. Are you able to provide assistance in the evaluation and selection of a custodial bank? If so, describe your firm’s process and experience in conducting analyses of custodians.

2. How many custodial bank searches has your firm assisted in during the past three years?

3. Does your firm, any affiliate, or any individual employed by your firm pay or receive compensation, finder’s fees, or any other benefit from custodial banks, investment managers, investment funds, etc.? If so, please describe.

4. Describe the types of training and education you would be able to provide to the Retirement Board and/or staff.

J. Fees

1. Provide a detailed proposal of the fees to be charged for providing the services required under this RFP, for the duration of the 5-year contract term. The proposal should include a fixed fee for all services identified herein, that includes at least one asset/liability study during the contract period. Fees should be inclusive of all travel and additional expenses.

2. Please describe fee arrangements for special projects or services that fall outside the scope of services contemplated in this RFP.

3. Has the firm providing investment consulting services under alternative fee arrangements? If so, please describe.

4. Please identify any special fee arrangements your firm has negotiated with any of the Retirement System’s and VEBA’s current investment managers. Were the fee arrangements negotiated on behalf of a specific client or are they available to all of your firm’s clients?

K. References

1. Please supply a list of your five largest client relationships, including the size of each respective fund.

2. Please provide a list of all public fund clients, including the size of each fund and length of service.

3. Please provide at least three (3) specific references who are current clients for whom work similar to that required under this RFP has been performed. Public sector references are preferred, as are references with experience with the proposed consulting team.

VIII. INSURANCE

The selected Consultant shall be required to maintain, at its own expense, all insurance coverages as set forth below, protecting OCERS, the VEBA, and Retirement Board against loss or claims which may arise out of the consultant’s performance or non-performance of services under the terms of the awarded contract. The insurance shall be written for not less than any minimum limits or as specified by applicable law, whichever is greater.

A. Generally

All insurance shall be endorsed, as applicable, and shall contain the following terms, conditions, and/or endorsements:

1. All coverage shall be on a primary, non-contributory basis with any other insurance or self-insurance carried by the County, OCERS, the VEBA, and the Retirement Board.

2. Any and all deductibles or self-insured retentions shall be assumed by and be at the sole risk of the consultant.

3. All policies, except where explicitly prohibited by the insurance carrier, shall be endorsed to include a written waiver of subrogation in favor of OCERS, the VEBA, the Retirement Board, and the County.

4. All insurance policies, with the exception of Workers’ Compensation and Errors & Omissions, shall be endorsed to name as additional insured:

a. Oakland County Employees’ Retirement System;

b. Oakland County VEBA;

c. Oakland County Retirement and Deferred Compensation Board; and

d. Oakland County, Michigan, and its departments, divisions, authorities, boards, committees, and agents.

5. All insurance carriers must be licensed and approved to do business in Michigan and shall have and maintain a minimum A.M. Best rating of A or greater.

6. The selected consultant shall require their vendors, contractors, and subcontractors not protected under the consultant’s insurance policies, to procure and maintain insurance with coverages, limits, provisions and/or conditions equivalent to those required of the consultant.

7. Consultant is to provide at least thirty (30) days advance written notice of any material change, non-renewal, or cancellation of required insurance coverages. Certificates of Insurance must be provided no less than ten (10) days prior to commencement of work under the awarded contract.

B. Commercial General Liability Insurance

Commercial General Liability insurance shall be maintained with the following minimum limits:

$1,000,000 – Bodily injury & property damage, each occurrence $1,000,000 – Personal & advertising injury limit $1,000,000 – General Aggregate Limit $1,000,000 – Products/Completed Operations Limit

Commercial General Liability insurance shall contain the following minimum coverages:

Occurrence Form Premises/Operations Personal and Advertising Injury Independent Contractors Products and Completed Operations Broad Form Contractual Liability (including coverage for obligations assumed in this contract)

C. Workers' Compensation Insurance

Workers' Compensation insurance coverage shall be maintained in accordance with all applicable statutory limits as required under applicable federal and/or state law.

D. Errors & Omissions Liability Insurance

Errors & Omissions insurance coverage shall be maintained with minimum limits of $1,000,000 each claim and $5,000,000 aggregate to cover all claims or damages from all acts, errors, or omissions resulting from professional services provided by the selected consultant. If coverage is written on a claims made basis, tail or extended reporting form coverage shall be maintained for a period of no less than three (3) years following the termination of the awarded contract (including any renewals, extensions, or restatements thereof). Evidence of tail or extended reporting period coverage shall be provided to the Retirement Board no less than ten (10) days following the termination of the contract.

IX. OTHER REQUIREMENTS

1. Pre-Qualification: Inviting a proposal does not assume a "pre-qualification" of any proposer.

2. Proposal Preparation Cost: The Retirement Board will not be liable for any costs incurred in preparation of proposals.

3. Certification as to Request for Proposal Content: By submitting a proposal, the proposer certifies that it has fully read and understands the RFP and has full knowledge of the scope, nature, quantity, and quality of work to be performed. Unless specified to the contrary, submitting a proposal will be interpreted as agreement to all provisions in and requirements of the RFP.

4. Additional Information and Instruction: The Respondent shall furnish such additional information as the Retirement Board may reasonably request. The Retirement Board reserves the right to investigate the qualifications of all respondents as it deems appropriate.

5. Negotiations: The Retirement Board reserves the right to conduct pre-contract negotiations with any or all respondents.

6. Proposal Rejection: The Retirement Board reserves the right to reject any or all proposals, the right in its sole discretion to accept the proposal which it considers most favorable to the Retirement Board's interest, and the right to waive minor irregularities in the procedures. The Retirement Board further reserves the right to seek new proposals when such a procedure is in its best interest.

7. Proposals Binding for 180 Days: All proposals submitted shall be binding for one hundred eighty (180) calendar days following the deadline for…