The District of Columbia Retirement Board (DCRB) is seeking a consultant (“Offeror”) to help it fulfill its fiduciary obligation of monitoring its external investment managers’ trading costs and transition management services:
- Trade cost analysis (TCA): The firm will prepare quarterly monitoring reports detailing managers’ equity, fixed income and foreign exchange trade costs during the prior quarter, identifying trends and patterns over multiple quarters, and benchmarking managers’ trade costs relative to peers. The reports must be submitted to DCRB within 30 days after the end of each calendar quarter. While other metrics are welcome, primary emphasis should be implementation shortfall (so as to quantify the loss of asset value incurred by the Funds). The service should also flag significant issues warranting follow-up with managers and work with staff on resolving such issues. DCRB currently employs 11 public equity and fixed income investment managers which manage a total of four separate accounts and 11 fund investments, not including the cash manager.
- Transition management consulting: The firm will be asked to assist DCRB in manager transitions by working with staff to develop optimal transition strategies, objectively evaluate and recommend the selection of transition managers, and prepare pre- and post-transition analysis reports. In providing these services, the firm must render their advice and recommendations as a fiduciary, utilizing a standard consistent with that of an ERISA fiduciary. DCRB typically completes two to three manager transitions per year.
See the RFP attached below for more details. All responses are due on or before Monday, July 29, 2013, at 5:00 pm (EST).
Questions about the Request for Proposals submitted in writing by 5:00 pm EST July 10, 2013, were accepted by DCRB. The questions and DCRB's answers to them may be viewed in the attachment below titled "DCRB Transaction Cost Analysis Consulting RFP Questions."