City of Albany
Post Office Box 447
Albany, Georgia
31702-0447
Central Services Department
Phone: 229.431.3211
FAX: 229.431.2184
Stephen Collier, Director
Yvette Fields, Deputy Director
March 29, 2013
TO:
SUBJECT:
All Potential Proposers
Financial Consulting
Defined Benefit Plan
RFP Ref. #13-041
Proposal Closing Date & Time: April 17, 2013 @ 5:00 p.m.
ADDENDUM NO. 4
The items contained in this addendum are added to and/or deleted and become part of the proposal
documents for the above referenced Request for Proposals.
Answers to Questions
1. Is there a particular rationale associated with having the investment advisory services integrated
with the custodial function of the plan? (i.e. does the custodial bank holding the assets
necessarily need to be ‘owned by the advisory firm’ providing the investment advisory services to
the plan?) Yes, the plan prefers the consultant to be the custodian of the Trust’s funds, but this
is not a requirement.
2. Is the committee necessarily committed to using Separate Accounts only, in the management of
the City’s Pension Assets? If so, could we understand why this is the case? Yes. We are retaining
the existing 6 money managers listed in the proposal document.
3. If there were more economical methods (varieties of investment products) available for the
management of the plan’s assets made available, would the City be open to utilizing such
vehicles? See Addendum #2.
4. Could you explain your expectations regarding the daily monitoring of the plan’s assets? What
would the committee ‘expect’ to receive in return for such oversight? To that end, is the
committee interested in deploying a more ‘tactical’ strategy with respect to the management of
the plan? The Board expects daily (fiduciary) oversight of investment activities. The Board
expects monthly, quarterly, and annual reports on manager activity, trends, and results as
compared to their respective benchmarks. As far as strategy is concerned, each proposer is free
to offer whatever financial consulting method they feel is appropriate.
Ref 13-041, Financial Consulting Services-Defined Benefit Plan
Page 1 of 31
Page 2 of Addendum 4
5. Has the committee considered implementing a ‘Liability Driven Investing’ approach towards the
management of the plans assets? If so, would the committee like to know more about the
benefits of such an approach? The Board is comfortable with the investment strategy outlined
in the Investment Policy disclosed with Addendum #2.
6. On page 1, you mention that the financial consulting firm will be expected to provide custodial
duties. We offer custody services through a wholly-owned subsidiary, Consultiva Securities, Inc,
which is an introducing broker dealer. The assets would be custodied at Wells Fargo through
First Clearing. You may respond with your proposed solution. The Board is seeking the best
proposer for the specified services.
7. On pages 1-2, you mention that we must provide a copy of the Secretary of State’s Certificate of
Incorporation and that we maintain insurance with companies licensed to do business in the
State of Georgia. We are incorporated in the Puerto Rico. I am not sure by that statement if
you mean the firm would need to be incorporated in the state of Georgia. We maintain
all proper and required insurance through local firms in PR. The Secretary of State’s Certificate
of Incorporation is referencing the documentation a firm would receive, if the firm is
“Incorporated”, from the appropriate authority showing proof of incorporation. You would
submit your documentation from your authorizing Board showing proof of your incorporation
status. The selected consultant will be required to obtain and maintain stated insurance from
an insurance company that is “licensed” to do business in the State of Georgia.
All other terms and conditions remain unchanged. Acknowledge receipt of this addendum with your
submittal. If you have any questions, feel free to contact me at (229) 431-3211.
Angela S Calhoun
Angela S Calhoun, CPPB, Buyer
cc: Phil Roberson, Director
File
Attachments: Actuarial Audit of Pension Plan 7/1/2011 (29 pgs)
Ref 13-041, Financial Consulting Services-Defined Benefit Plan
Page 2 of 31