1071 -2018 First Overseas Discretionary Investment of Labor
Pension Fund & Labor Retirement Fund & National Pension
Insurance FundRequest for Service Proposal for Absolute Return
Equity
In case of inconsistency between this RFP and the Investment
Management Agreement, the Investment Management Agreement shall
prevail.
Information Collection Form to be completed by candidates [The
information below refers to the entity that does the actual
investment management, unless otherwise indicated]
BC
The Bureau of Labor Funds (hereafter the "BLF") is currently
seeking to appoint five Absolute Return Equity investment managers
for Labor Pension Fund, Labor Retirement Fund and National Pension
Insurance Fund separately. To be included in our consideration,
please complete the tables below (Sections B to C). Please
endeavour to keep responses accurate and concise, abiding by the
word limits specified in the questions (where relevant).
It would be appreciated if you can complete this document and
reply in conjunction with other application documentations prior to
the application deadline as specified in the Application
Guidelines. Soft copy submission is required.
Data as of:
09/30/2017
If not available, please provide the latest data with date
specified
A Section A The Mandate
Mandate Profile
Fund
Labor Pension Fund
Labor Retirement Fund
National Pension Insurance Fund
Size
4US$400 million
per manager
0.8US$80 million
per manager
0.8US$80 million
per manager
Performance Target
USD 3-Month LIBOR +5% ()
To generate investment returns higher than USD 3-Month LIBOR +5%
p.a. (net of all fees and taxes) during the mandate tenure
Risk target
12%
Standard deviation: not higher than 12% p.a.
Vehicle
Segregated portfolio
Mandate Benchmark
Asset Class
%Strategic Allocation (%)
Proposed Benchmark Index
Absolute Return Equity
100
USD 3-Month LIBOR + 5%
Proposed Product
Manager Name
Proposed Product
Applying Fund (Please check the applicable boxes)
Labor Pension Fund
Labor Retirement Fund
National Pension Insurance Fund
:,,107110711071Applicants can check more than one fund. For
further details on investment guidelines and restrictions, please
refer to Investment Guidelines for 2018 First Overseas
Discretionary Investment of Labor Pension Fund, Investment
Guidelines for 2018 First Overseas Discretionary Investment of
Labor Retirement Fund, Investment Guidelines for 2018 First
Overseas Discretionary Investment of National Pension Insurance
Fund.
1071 -2018 First Overseas Discretionary Investment of Labor
Pension Fund & Labor Retirement Fund & National Pension
Insurance FundRequest for Service Proposal for Absolute Return
Equity
B ()Section B Data Collection Tables (1. Business)
-
-
B.1
200Company history and organisational structure (In less than
200 words)
B.2
200Brief description of management team and its capability (In
less than 200 words)
B.3
200Brief description of company culture and long term business
goals (In less than 200 words)
B.4
300Please specify the level of resources dedicated into main
area of business and this stated mandate (In less than 300
words)
B.5
(AUM)Firm-wide AUM and AUM for institutional clients
As of
/Firm/groups total AUM(10)(US$ bn)
Total AUM forInstitutional clients
AUM(10)(US$ bn)
No. of clients
2012/12
2013/12
2014/12
2015/12
2016/12
2017/09
B.6
Total assets (total AUM for all mandates) gained and lost
As of
Worldwide
For clients in Taiwan
Asset inflow (US$ mn)
Asset outflow (US$ mn)
Asset inflow (US$ mn)
Asset outflow (US$ mn)
2012/12
2013/12
2014/12
2015/12
2016/12
2017/09
B.7
Equity products AUM and number of clients
As of
Worldwide
For clients in Taiwan
AUM(10)(US$ bn)
No. of clients
AUM(10)(US$ bn)
No. of clients
2012/12
2013/12
2014/12
2015/12
2016/12
2017/09
B.8
Equity products assets gained and lost
As of
Worldwide
For clients in Taiwan
Asset inflow (US$ mn)
Asset outflow (US$ mn)
Asset inflow (US$ mn)
Asset outflow (US$ mn)
2012/12
2013/12
2014/12
2015/12
2016/12
2017/09
B.9
Proposed products AUM and number of clients
As of
Worldwide
For clients in Taiwan
AUM(10)(US$ bn)
No. of clients
AUM(10)(US$ bn)
No. of clients
2012/12
2013/12
2014/12
2015/12
2016/12
2017/09
B.10
Proposed products assets gained and lost
As of
Worldwide
For clients in Taiwan
Asset inflow (US$ mn)
Asset outflow (US$ mn)
Asset inflow (US$ mn)
Asset outflow (US$ mn)
2012/12
2013/12
2014/12
2015/12
2016/12
2017/09
B.11
/Revenue relating to asset management business, and contribution
to the group/parent
As of
Revenue in the year(US$ mn)
% % contribution to the whole group or parent
2012/12
2013/12
2014/12
2015/12
2016/12
2017/09
B.12
/Profit of asset management business, and contribution to the
group/parent
As of
Profit in the year(US$ mn)
% % contribution to the whole group or parent
2012/12
2013/12
2014/12
2015/12
2016/12
2017/09
P.1
B.13
Details and % of employee ownership of the firm (as of the end
of year)
Descriptions:
As of
%% of employee ownership
2012/12
2013/12
2014/12
2015/12
2016/12
2017/09
B.14
A200
Please explain why the BLF should appoint your organisation to
manage the stated mandate in Section A, in preference to your
competitors? What are the unique advantages of your organisation?
(less than 200 words)
B.15
Please explain how your organisation manages to absorb new
business without affecting the existing clients interests.
B.16
(a) ()()For the 3 years ending the date which this RFP is
submitted, has your organisation breached any related regulation;
involved in any penalty case by the regulatory authority; been
named as a defendant in various legal proceedings (including those
with clients); has received subpoenas in connection with government
investigations or involved in the seek of compensation arising in
the ordinary course of business? (b) Please also provide details in
relation to any major loss/ write-offs of your organisation over
the past 1 year.(c) Please provide any latest developments related
to the above to the BLF during the evaluation process.
B.17
200
Are these legal proceedings or investigations expected to have a
material adverse impact on your financial condition or your ability
to perform the service proposed?
B.18
()()Are there any notices to be given to prospective clients by
the investment managers, required by your financial (securities)
supervisory body? If yes, please provide (if no, please skip this
question):(a) ()The name of the supervisory body(b) ()()Important
points in the notice (The related notice, including Chinese
translation, will be delivered to the BLF after execution of
the
contract. The notice should be consistent with the guidelines of
this mandate. When inconsistencies exist, the guidelines of this
mandate shall prevail.)
1071 -2018 First Overseas Discretionary Investment of Labor
Pension Fund & Labor Retirement Fund & National Pension
Insurance FundRequest for Service Proposal for Absolute Return
Equity
B ()Section B Data Collection Tables (2. Investment
Professionals)
-
-
B.19
[1]Total number of investment profession-als [1] and average
years of experience
As of
No. of Fund Mana-gers
Avg. Yrs. ofExperience
No. of Analys-ts
Avg. Yrs. ofExperience
No. of OtherInvestment Profession-als
Avg. Yrs. ofExperience
Total no. of Profess-ionals
With Indus-try
With Firm
With Indus-try
With Firm
With Indus-try
With Firm
2012/12
2013/12
2014/12
2015/12
2016/12
2017/09
B.20
Total number of investment profession-als related to the equity
products
As of
No. of Fund Mana-gers
Avg. Yrs. ofExperience
No. of Analys-ts
Avg. Yrs. ofExperience
No. of OtherInvestment Profession-als
Avg. Yrs. ofExperience
Total no. of Profess-ionals
With Indus-try
With Firm
With Indus-try
With Firm
With Indus-try
With Firm
2012/12
2013/12
2014/12
2015/12
2016/12
2017/09
B.21
Total number of investment profession-als related to the
proposed product
As of
No. of Fund Mana-gers
Avg. Yrs. ofExperience
No. of Analys-ts
Avg. Yrs. ofExperience
No. of OtherInvestment Profession-als
Avg. Yrs. ofExperience
Total no. of Profess-ionals
With Indus-try
With Firm
With Indus-try
With Firm
With Indus-try
With Firm
2012/12
2013/12
2014/12
2015/12
2016/12
2017/09
B.22
Turnover for all investment professionals- No. of joiners- No.
of leavers
As of
Number of Joiners
Number of Leavers
Fund Manager
Analyst
OtherInvestment Professional
Fund Manager
Analyst
OtherInvestment Professional
2012/12
2013/12
2014/12
2015/12
2016/12
2017/09
B.23
Turnover of investment professionals related to the proposed
product- No. of joiners- No. of leavers
As of
Number of Joiners
Number of Leavers
Fund Manager
Analyst
OtherInvestment Professional
Fund Manager
Analyst
OtherInvestment Professional
2012/12
2013/12
2014/12
2015/12
2016/12
2017/09
B.24
Name of the key professionals of the proposed product and their
roles
B.25
200 Appropriateness of resources required for investment
activities (In less than 200 words)
B.26
200Please highlight the skillset of the team members and how
they complement each other (In less than 200 words).
B.27
Name of key departures, roles and the respective departure
reasons
B.28
Remuneration structure- %- Bonus as % of total remuneration- -
Payment method- /- Lock-up period or deferred benefits- - Deferred
CompensationIf the remuneration structures for the portfolio
management team and the research team differ, please describe them
respectively.
B.29
Basis of discretionary bonus (e.g. what % is related to
investment performance, team based or individual based, etc.) and
the funding source
B.30
Key portfolio manager(s) experience in managing the same or
similar strategies. Please provide 2 relevant client references
with contact information.
B.31
36, 200
Please briefly highlight the key changes and development over
the past 36 months for the investment team which is responsible for
managing the proposed product. (in less than 200 words)
B.32
CHow long has your current investment team responsible for the
proposed product been in place? And how long has the key
individual(s) been with the team? To what extent has your
performance record shown in Section C been produced by the current
investment team?
B.33
//How do you propose to notify BLF on changes to your team?
(e.g. communicate beforehand / notify beforehand / notify after
fact)
[1] CIOInvestment Professional is defined as any employees who
are involved directly with or indirectly with the investment of the
assets, i.e. including e.g. CIO, fund managers, analysts,
economists, but excluding e.g. trader, dealer, back room staff and
secretaries.
1071 -2018 First Overseas Discretionary Investment of Labor
Pension Fund &Labor Retirement Fund & National Pension
Insurance FundRequest for Service Proposal for Absolute Return
Equity
B ()Section B Data Collection Tables (3. Investment Process)
-
-
B.34
500General descriptions of investment philosophy (In less than
500 words)
B.35
500Asset allocation process (In less than 500 words)
B.36
500Security research process (In less than 500 words)
B.37
: 500Portfolio construction process: Please describe in detail
how investment ideas are brought into the investment portfolio and
the interaction between portfolio managers and regional analysts
(In less than 500 words).
B.38
3200Please describe the changes of the investment process over
the past 3 years (In less than 200 words).
B.39
300Please describe the competitive advantages and innovative
elements of the proposed product (In less than 300 words).
B.40
/2017930 [2]Asset allocation as of 30 September 2017 of typical
/model portfolio and proposed product [2]
B.41
/ [2]Does your organisation have pooled funds/mutual funds for
the proposed mandate [2]?
B.42
/[2]If yes, please provide the details for the pooled
funds/mutual funds [2].
Fund Name:
________________
B.43
2017930
Funds total asset (as of 30 September 2017)
US$ ____________
B.44
The adopted benchmark:
________________
B.45
2017930
The number of institutional clients invested in the Fund (as of
30 September 2017) :
________________
B.46
2017930/Factsheet
Please provide the monthly Factsheet as of 30 September 2017 of
the pooled funds/mutual funds
B.47
/2017930[2]Please provide the asset allocation as of 30
September 2017 for the pooled funds/mutual funds [2].
B.48
Risk management processPlease briefly describe the following
internal control and auditing procedures:-- Performance evaluation-
- Self regulating and ethics-()- Management of conflict of interest
(including firewalls and confidentiality, etc.)-()- Risk control in
trading process (including the standard and principles of selecting
brokers, principle of trade allocation, whether collective trade
exists, etc.)-- Internal operation control-- Internal auditing and
monitoring Scheme
B.49
/Target risk (standard deviation, % p.a.) and performance of
typical /model portfolio and proposed product
typical /model portfolio
proposed product
Target standard deviation
Target performance
B.50
What are the sources of return for this proposed product?
weighting
Sources of return
1
Last 1 year
3
Last 3 years
Long position return
Short position return
Dividend income
Costs related to short position
Currency
Residual
B.51
Based on the current market conditions, please provide and
explain the expected asset allocation for the proposed mandate.
Sector
Long weighting%
Short weighting%
Net weighting%
Sector name
Sector name
Sector name
Sector name
Sector name
Sector name
Region
Long weighting%
Short weighting%
Net weighting%
U.S.
Europe
Japan
Asia
Latin America
EMEA
_____
Others___
Currency
Long weighting%
Short weighting%
Net weighting%
USD
EUR
JPY
_____*
Others___*
_____*
Others___*
_____*
Others___*
_____*
Others___*
*
Examples of Others include GBP, CHF, CAD, AUD, etc.
B.52
??Please describe the currency management process for the
proposed strategy. Is active currency management adopted?
B.53
/(09/2016 - 09/2017) (, ) / (09/2016 - 09/2017)
Target average annual turnover (% p.a.) of typical /model
portfolio and proposed product. Notes: Turnover defined as lesser
of purchases and sales divided by mean value of portfolio = Min
(Purchases, Sales) / (Mean value of portfolio between 09/2016 -
09/2017).
B.54
/ (09/2016 - 09/2017)Cash ratio of typical /model portfolio and
proposed product (average between 09/2016 - 09/2017)
B.55
20179305Maximum drawdown over the last 5 years as of 30
September 2017.
B.56
20179305Drawdown duration (in months) over the last 5 years as
of 30 September 2017
B.57
20179305USD 3-Month LIBOR
Sharpe ratio over the last 5 years as of 30 September 2017 (take
USD 3-month LIBOR as the risk-free index)
B.58
20179305USD 3-Month LIBORSortino ratio over the last 5 years as
of 30 September 2017 (take USD 3-month LIBOR as the risk-free
index)
B.59
2017930
Market exposure of long positions as of 30 September 2017
B.60
2017930
Market exposure of short positions as of 30 September 2017
B.61
2017930beta
Market beta of long positions as of 30 September 2017
B.62
2017930beta
Market beta of short positions as of 30 September 2017
B.63
2017930
Number of holdings of long positions as of 30 September 2017
B.64
2017930
Number of holdings of short positions as of 30 September
2017
B.65
2017930
Average market capitalisation of long positions as of 30
September 2017
B.66
2017930
Average market capitalisation of short positions as of 30
September 2017
B.67
Investment performance attribution analysis capability and
method.
B.68
/Approaches and solution to investing in markets that restrict
direct investment or have low liquidity for typical /model
portfolio and proposed product.
B.69
?(SRI)?How the transaction costs to be managed to maximize the
efficiency of the mandate? Please provide the average transaction
costs. Do you take the concept of corporate governance and Socially
Responsible Investing into consideration in your stock selection
process?
B.70
Please elaborate your proxy voting policy.
B.71
?What major difficulties (if any) do you envisage against the
proposed target return?
B.72
? ?What is your expectation on the tax impact for this mandate?
How is the tax impact minimised?
B.73
Capacity management
200
What is the expected capacity for this mandate under current
resources with your firm and the key manager(s)? Is there any
measure to protect existing clients? (In less than 200 words)
B.74
Please explain if there is any stop-loss mechanism and limit for
the equity investment of the proposed product.
B.75
Does your transaction process or related risk management of the
use of derivatives comply with your domestic regulations? Please
include the following aspects in your explanation:- - The
transaction process of derivatives (transaction process should
include transaction analysis, decision making, execution and
evaluation etc.)- - The risk controls in place for the derivatives
transactions- ?- Are the segregated responsibilities of related
people in derivatives transactions and its outsourcing covered by
your internal audit and internal control?- - Expected derivatives
to be used in the proposed product- - If the derivatives are used
for non-hedging purposes, please elaborate their expected stop-loss
mechanism and limit.
B.76
/:??1Please provide the usage of derivatives in typical /model
portfolio (e.g. percentage of overall allocation). Is there any
analysis and data in relation to the contribution from derivatives
towards the overall investment portfolio performance? If yes,
please provide the latest 1 year data.
B.77
/?(,)Please separately describe the use of derivatives for
hedging purposes and non-hedging purposes of typical /model
portfolio (items, values, percentage of overall allocation,
etc)
B.78
In addition to institutional clients, what percentage of
investment in the proposed product is from your firm or investment
managers of your firm?
B.79
200Please specify the level of resources dedicated into main
area of business and this stated mandate (In less than 200
words).
B.80
2018What would you expect for the global economic outlook in one
year time and the relevant investment strategy? Please also provide
the expected return (expressed in %) over year 2018 for the
investment strategy adopted for this mandate. Please highlight the
accuracy of the economic outlook in the past and provide the
relevant performance data for the adopted investment strategy.
B.81
What measures will you use to control drawdowns in bear markets?
Please also explain the measures used in the past under the
downward pressure and their effectiveness.
B.82
Please describe the strategy for dealing with the short
positions and how the strategy impacts the overall investment
portfolio.
[2]
If more than one portfolio are used to construct the composite
portfolio, please provide the relevant information of all the
underlying portfolios simultaneously.
1071 -2018 First Overseas Discretionary Investment of Labor
Pension Fund & Labor Retirement Fund & National Pension
Insurance FundRequest for Service Proposal for Absolute Return
Equity
B ()Section B Data Collection Tables (4. Service)
-
-
B.83
Primary servicing contact and location
B.84
Lead and back-up portfolio manager and location
B.85
Location of investment office
B.86
Please highlight how you will be able to provide satisfactory
customer service, location of branch, and service team in
Taiwan.
B.87
200Please highlight how you can demonstrate your commitment to
Taiwanese market and the cooperation with local asset management
industry in Taiwan, if selected by the Bureau. (less than 200
words)
B.88
( )Reporting capability (Please refer to the reporting
requirements in the Investment Management Agreement and elaborate
whether you can meet these requirements).
B.89
Please specifically describe the client training service and
other services that you can provide to enhance clients capability,
also your past experience of providing client training.
B.90
(:,)
Your proposed fee as per the breakdown. Please state other fees
(if there are any, e.g. custodian, administration etc.). Please
confirm that you would derive no other remuneration (other than
those listed) from this portfolio.
:
Total proposed fee:
(Please make sure that the quoted fee includes all fees
including investment management fee)
Breakdown of total proposed fee
1. :Investment Management fee
2.:():Other fees(please specify):
B.91
(Standard Fee Schedule)Standard fee scales for institutional
clients.
B.92
()/Does your company entrust any services other than investment
advice (such as back office operationsetc) to other organisations?
If yes, please specify the name of the entrusted organisations and
the scope of delegation.
1071 -2018 First Overseas Discretionary Investment of Labor
Pension Fund & Labor Retirement Fund & National Pension
Insurance FundRequest for Service Proposal for Absolute Return
Equity
C Section C Monthly Performance & Portfolio Breakdown
-
-
Excel
Please provide monthly returns (both gross and net of fees)
since the proposed products inception in US dollar terms (please
indicate the fees that are deducted) and the corresponding
benchmark returns as per the Excel spreadsheet provided separately.
(Please also provide performance of relevant product if the
performance for the proposed product is below 3 years)
In providing the returns, please describe the methodology
behind.
Portfolio weights and returns by country should also be inserted
into the Excel spreadsheet for calculation of standardised
attribution analysis.
CFA InstituteGIPSCFA Institute GIPSCFA InstituteGIPSCFA
InstituteGIPSGIPSGIPS
The evaluation and expression of the proposed product component
investment performance shall be in line with the requirements of
GIPS as provided by CFA Institute or the standards of other
countries, provided that the applicant shall submit a certificate
of equivalence of GIPS requirements at the time of application. If
the applicant provide with composite performance, each component
performance should be GIPS-compliant, or compliant of the standards
of other countries. The composite performance does not necessarily
be GIPS-compliant, or compliant of the standards of other countries
but its construction should be explained in details. If the
standards of other countries are adopted, apart from the original
performance track record, please provide the performance data
calculated based on GIPS standard. The certificate of equivalence
of GIPS requirements shall be issued by local monetary authority,
asset management association, accounting firms or GIPS
verifiers.
: Note: Preference on performance data
To facilitate fair comparison of manager's performance,
performance is preferred in the following order:
1
Performance of a portfolio tracking the mandate benchmark.
2
Performance of a composite portfolio tracking the mandate
benchmark. If more than one portfolio are used to construct the
composite portfolio, please provide the performance of all the
underlying portfolios separately.
3
Performance of a composite portfolio tracking benchmark that is
not the mandate benchmark but fulfills the requirement listed in
the Application Guidelines. Please provide the performance of all
the underlying portfolios separately.
Thank you, this is the end of the Information Collection Form -
please provide the contact details of the person who completed this
form for enquiry purpose.
Name:
Tel:
Email: