SAMP Industry Day - Fact Sheet - Final.pdf

Smaller Asset Manager

Fixed Income Investment Manager Services Smaller Asset Manager Program

Procurement Fact Sheet

Target Audience – Any fixed income asset manager interested in and capable of providing fixed income management services to PBGC in support of its Smaller Asset Manager Program (SAMP). PBGC encourages smaller asset managers to participate.

Purpose – Inform prospective offerors of PBGC’s SAMP and its upcoming investment manager selection process.

Further, this industry day will provide PBGC with valuable information regarding firms’ capabilities and business sizes.

PBGC will collect the names of participating firms and will share the names with industry day attendees to help facilitate networking opportunities.

Where and When – PBGC intends to post a solicitation for the SAMP requirement on www.sam.gov in late- November 2022. A brief description of SAMP, the procurement process, and the planned key criteria for investment manager selection is as follows:

SAMP Description – PBGC is seeking active investment management services for fixed income portfolios that will, over a full market cycle, provide a total rate of return that exceeds the benchmark of the respective portfolio, consistent with appropriate levels of risk. The intent of SAMP is to increase smaller asset managers’ opportunities to manage PBGC investment mandates.

Targeted Solicitation Release Date: Late-November 2022 Solicitation Posting Location: www.sam.gov Projected Duration for Firms to Respond: 45 days following issuance of solicitation

Number of Awarded Contracts: PBGC's goal is to expand the current number of contracts (with each firm winning no more than one (1) contract). PBGC reserves the right to award fewer or more contracts depending on the quality of proposals received Expected Duration of each Awarded Contract: Ten (10) years NAICS Code: 523920: “Portfolio Management”

Quick Procurement Highlights SAM Registration – Firm registration in active status at www.sam.gov is required prior to submitting a proposal Questions about the Solicitation – Firms will be provided an opportunity to ask the Government questions about the solicitation. Instructions on when and how to submit the questions will be provided in the solicitation. PBGC’s responses to all firms’ questions will be posted under the solicitation posting on www.sam.gov. Firm names will be omitted from the responses

Proposal Preparation – Firms shall draft their proposals in accordance with the instructions to offerors listed in the solicitation

Firm Selection – Proposals will be evaluated in accordance with the evaluation criteria listed in the solicitation https://sam.gov/content/home https://sam.gov/content/home https://sam.gov/content/home

Selection Process

When selecting investment managers for SAMP, PBGC will employ a two-phased approach. In Phase 1, PBGC will consider whether your firm’s proposal meets a list of minimum eligibility requirements. If your proposal meets the minimum eligibility requirements, your proposal will proceed to Phase 2.

A brief summary of the key discriminators for award per phase is as follows:

Discriminators for Award

Phase 1 –A list of the minimum eligibility requirements may be found in this fact sheet’s Appendix B, which is located on Page 4. Proposals that meet all minimum eligibility requirements will advance to Phase 2, while proposals that do not meet all minimum eligibility requirements will no longer be considered.

Phase 2 – In Phase 2, PBGC plans to review the following in your proposal:

1) The business issues and strength of your firm; your firm’s support, infrastructure, and operations; your regulatory compliance, and your corporate governance framework.

2) Your firm’s investment management philosophy and process for the product; your professional staff and resources; your investment results; and your portfolio stability and growth.

3) Your firm’s proposed price.

APPENDIX A – INDUSTRY DAY REGISTRATION FORM

Instructions

Please enter the appropriate response for the questions listed below. Please email a completed Appendix A to smallmgrprogram@pbgc.gov by 12:00 noon, ET on Monday, November 7, 2022. In your email, please use the email subject line: “SAMP Virtual Industry Day” followed by your firm’s name.

1) Your Firm’s Name:

2) Your Firm’s Address:

3) Your Firm’s Socio-Economic Status*:

4) Name of Your Firm’s Point of Contact:

5) Job Title:

6) Email Address:

7) Phone Number:

8) “Yes/No” confirmation that your firm will attend the PBGC SAMP Industry Day:

9) “Yes/No” confirmation that your firm can meet all minimum eligibility requirements listed in Appendix B below:

*All federal contractors are required to register in www.sam.gov. When registering your firm, you will select the NAICS codes on the Goods and Services page that capture the NAICS codes under which your firm conducts business. The NAICS codes your firm selects on the Goods and Services page of the registration are listed in the table under 52.219-1(c) on www.sam.gov.

Under each NAICS code, your firm will select whether your firm is a small business concern based on the size standards listed here.

Per the Procurement Fact Sheet above, the anticipated NAICS code for this procurement is 523920: “Portfolio Management.”

When completing your firm’s www.sam.gov registration under FAR 52.219-1, in addition to listing whether your firm is a small business under NAICS code 523920: “Portfolio Management,” your firm will need to select whether it is a small business concern that falls into a particular socio-economic category (e.g., a women-owned small business concern (WOSB), service-disabled veteran-owned small business (SDVOSB)). A list of the small business concerns may be found here.

https://www.sba.gov/federal-contracting/contracting-assistance-programs/small-disadvantaged-business https://www.law.cornell.edu/cfr/text/13/121.201

APPENDIX B – MINIMUM ELIGIBILITY REQUIREMENTS

FIRM LEVEL MINIMUM ELIGIBILITY REQUIREMENTS

A. The firm has been registered with the SEC as an investment advisor consistent with the Investment Advisors Act of 1940 for at least five years as of 3/31/22 (please note that this date is subject to change in the solicitation) or, if exempt from registration, the nature of the exemption is disclosed. *(Most current Registration number for Form ADV, Parts I and II to be provided in Tab 1 of Firm Mandatory Volume or, if exempt from registration the nature of the exemption is disclosed and the best proxy for this documentation included).

B. The firm shall act in accordance with the fiduciary standards of an ERISA fiduciary under this contract.

C. The firm should have at least $250,000,000.00 in Assets Under Management (AUM) as a fiduciary.

D. The firm has a positive net worth.

E. Within six months of contract award, the firm shall acquire an ERISA fidelity bond, with the PBGC as a loss payee, in the minimum amount of $1,000,000.00 and no deductible. The bond shall cover, at a minimum, losses due to dishonest or fraudulent acts by the contractor.

F. Within six months of contract award, the firm shall acquire errors and omissions coverage, and any other fiduciary coverage in the minimum amount of $2,000,000.00 with a maximum deductible of $75,000.00 per claim. The policy shall cover, at a minimum, losses caused by errors, omissions, or negligent acts of the contractor.

PRODUCT LEVEL MINIMUM ELIGIBILITY REQUIREMENTS (CORE FIXED INCOME)

A. The firm’s proposed qualifying product is actively managed against the Bloomberg U.S. Aggregate Bond Index and available in a separate account format.

B. The firm must manage at least a combined $250,000,000 USD as of 3/31/22 (please note that this date is subject to change in the solicitation) in multi-sector, U.S. Core and Core Plus products suitable for a tax-exempt sponsor.

Advisory assets shall not be included in this total.

C. The firm currently has at least one tax exempt institutional account with at least $25,000,000.00 USD invested in the proposed qualifying product as of 3/31/22 (please note that this date is subject to change in the solicitation).

(A tax-exempt account is defined as a separate account or a commingled fund managed on behalf of institutional investors that are tax-exempt. This definition excludes mutual funds, closed-end funds, and partnerships that are available for purchase by taxable entities).

D. The firm’s proposed qualifying product must have at least 5 years of live performance history as of 3/31/22 (please note that this date is subject to change in the solicitation) (simulated results are not acceptable).

E. The firm’s presented performance history complies with the CFA Institute (CFAI) Global Investment

Performance Standards (GIPS).

F. The firm must calculate the average of all rolling 36-month information ratios for the past 10 years or since product inception, whichever is shorter, through 3/31/22 (please note that this date is subject to change in the solicitation). Rolling quarterly calculations are not acceptable. The average, using the GIPs compliant performance information presented in the proposal, must exceed the following value: 0.50.