Pasadena City College Foundation Investment RFP - PCC Foundation

The Pasadena City College Foundation is receiving Requests for Proposals for Investment Management Consulting Services. Click on any of the documents below for more details.

Answers to Questions from Potential Investment Management Consultants

What is your main objective or objectives in issuing this RFP?

Please refer to the RFP and IPS.

How long have you been with your current Investment Management Consultant?

9 years.

Aside from investment management, are there currently any other services provided by the Incumbent that are beneficial to the Foundation?

Verification of assets held at other institutions, cash flow advisement, IPS updates and recommendations, update on market trends, quarterly meeting updates on performance.

Who is your current custodian?

Charles Schwab

Can you provide 5-year cash flows for the Foundation, as well as anticipated future cash flow requirements?

We expect cash flows to be immaterial to the fund’s longer term objectives and in influencing the investment strategy.

Will the Finance Committee and Board be responsible for evaluating and selecting the discretionary Investment Consultant?

Yes.

How will you weight the evaluation criteria?

The RFP was constructed in such a way as to allow us to select the managers that offer the greatest fit. The categories we will focus on are: Firm, Investment Management, Communication, Relationship, Management & Governance and Differentiators/Unique Value Proposition.

Do you have any specific reporting or operational requirements?

We expect basic requirements would be balances, rate of return, benchmark performances and holdings. In addition to the basic requirements, we anticipate quarterly meetings in person or by zoom. There may be specific reporting and operational requirements from time to time and we look for managers that would have the ability and willingness to assist in those requirements.

In addition to the benchmark, do you use any additional performance metrics to evaluate the managers?

Peer comparisons and the return rate v. our spending requirements.

Do you have a preference for a completely external manager solution?

No.

Have you identified specific ESG investing objectives, or are you looking for guidance in this area?

We are open to guidance in this area.

Does the Finance Committee, Board or staff have any wish list items to create efficiencies, streamline processes or facilitate other objectives?

We do not have specific items identified.

Are you able to provide a current statement with details on investment allocations?

Please refer to the PCC Foundation website.

Have there been any notable changes in investment strategy or allocation over the past 2 years?

No notable changes.

To further clarify the IPS guidance related to private investments (section VI, C), can you confirm that all partnership vehicles and therefore illiquid private equity, debt and real estate investments with longer life spans (5 to 10 years+) are excluded? If that is the case, can you provide insight into the factors driving those limitations?

Yes, they are currently excluded for a variety of reasons including risk and transparency. Notwithstanding, we are open to differing points of view.

Have there been any recent Board or Finance Committee inputs that have influenced the investment program?

Yes.

Is the current portfolio managed with full discretion by the incumbent advisor? How has the investment governance – including discretionary vs. non-discretionary approach - of the Foundation evolved over time?

It is a full discretionary approach and has been so for the last nine years.

In the RFP it states that the selected frim will manage “some portion” of the assets. Can you provide some insight as to the size of the investable portfolio? Will there be multiple advisors?

To be determined. Please refer to the introductory letter for the investable portfolio

Given the sizable gift from Ms. Scott, does the Foundation have a desire to incorporate environmental, social, and governance (ESG) or diversity, equity, and inclusion (DEI) into the investment portfolio?

Refer to the RFP on the PCC Foundation website.

The IPS states that investments in limited partnerships (including venture capital) are prohibited. Is this still accurate? Is the Foundation willing to consider these types of investments given increase in the portfolio size and the need to meet the 7.5% spend rate?

Yes, they are currently excluded for a variety of reasons including risk and transparency. Notwithstanding, we are open to differing points of view.

Are you able to share details as to what the Foundation is currently paying in all-in expenses related to the management of the portfolio (consultant, manager, custody fees)?

See financial statements on PCC Foundation website.