Request for Information Proxy Voting Services

Transcription

1 Request for Information Proxy Voting Services I Introduction: The Orange County Employees Retirement System (OCERS) is seeking information from service providers with expertise in providing proxy voting services with a full range of proxy analysis and reporting capabilities. II Background/Purpose: OCERS currently requires external investment managers to vote all proxies in accordance with the Proxy Voting template developed by its Proxy Voting Service Provider. Presently, OCERS maintains one separately managed domestic equity account; three separately managed international equity accounts and one master limited partnership. Approximately 900 individual positions are held within the five separately managed equity portfolios. OCERS is currently reviewing its equity structure, which could result in the addition of actively managed portfolios. The scope of proxy voting services required by OCERS includes, but is not limited to the following: 1. Proxy analysis. 2. Review of OCERS Proxy Voting Policy. 3. Proxy voting recommendations in accordance with OCERS Proxy Voting Policy. 4. Vote execution. 5. Record keeping of proxy analysis, recommendations and vote execution. 6. Quarterly and Annual report of proxies voted. 7. Annual presentation to the OCERS Investment Committee. III Respondent Requirements: It is desirable that Respondents have extensive experience in providing proxy voting services. All responses reflecting the organization s current capabilities and size are appreciated. IV Submission Requirements: To respond to this Request for Information, complete and return the enclosed OCERS Proxy Voting Services Questionnaire on or before April 10, Please deliver one (1) hard copy of your response and an electronic (Microsoft Word) version of the response to: Molly A. Murphy, CFA, Chief Investment Officer Orange County Employees Retirement System 2223 E. Wellington Avenue, Suite 100 Santa Ana, CA RFI4Investments@ocers.org 1

2 V General Information: A. Questions regarding the Request for Information may be sent electronically to: Questions must be received by March 23, OCERS will use reasonable efforts to respond to questions in a timely manner. B. Proprietary Information: All responses become the property of OCERS upon submission, and are subject to public inspection and disclosure. If the Respondent seeks to exempt certain pages or items from public inspection, then Respondent should clearly mark the pages or items as Proprietary Information. OCERS will use reasonable efforts to exempt such pages or items from public disclosure pursuant to various disclosure requirements under State and Federal Law, but makes no representations or warranties that such efforts will be successful. Please note that the entire response cannot be considered Proprietary Information. 2

3 OCERS Proxy Voting Services Questionnaire 1. Company Information: Name of Firm: Address: City/State/Zip: RFI Primary Contact Person: Telephone: Fax: Address: 2. Background Information: Number of Institutional Clients and corresponding dollar ($) value of Assets under Management (millions): Number of companies analyzed: U.S.: Non-U.S.: Number of countries outside U.S. where proxies are voted: Total number of California public pension fund clients: Percentage of clients utilizing State Street Bank as Custodian: Number of years the firm has offered Proxy Services: Number of years engaged in Global Proxy Voting Services: Please provide a listing of your office locations: 3. Proxy Voting: Do you review all proxy votes? Do you vote on specific issues on a case-by-case basis? Do you vote according to individual client proxy policies? 3

4 4. General: A. Describe your firm s ownership and operational units/divisions. B. Provide an organizational chart and biographies specific to the individuals expected to oversee the OCERS account. C. What measures do you take to ensure that a client s specific guidelines are followed and all proxies are voted? D. Provide a client list. E. List three client references including contact information and portfolio size. F. How many proxy voting clients have you gained in the past 24 months? G. How many proxy voting clients have you lost in the past 24 months? Please state reason(s) for client losses. H. Have you resigned from any relationships in the past 24 months? If so, why? I. Attach an example of your proxy voting report summary. J. Describe any material litigation that your company has been involved in over the last three years. K. Describe your firm s disaster recovery plan, especially as it relates to your ability to continue providing proxy voting services. L. Provide the percentage of total firm revenue derived from providing proxy services. M. Does your firm, or any affiliate, accept soft dollars in exchange for services? N. Disclose the nature of any relationships your organization may have, or had, with any OCERS Trustees, Consultants or Staff Members. If there are no prior relationships or conflicts, then please reply, There are no prior relationships or conflicts of interest to report. O. Describe how OCERS portfolio holdings would be monitored and updated. P. What would you recommend OCERS do in order to ensure its first year of proxy voting goes smoothly? Q. Please provide a description of the resources available to help educate the Board and staff on proxy voting and governance. R. Discuss training opportunities and any annual conference information. S. Why should OCERS hire your firm? T. Describe your methods and systems in place to protect OCERS data from intrusion and theft. What are you data and cyber security protocols? 5. Policy: A. OCERS relies on its current Proxy Provider s policy to vote proxies, please comment on aspects of the proxy voting policy that might be improved to better align with best practices or recent developments you have seen in other public plans. B. What philosophies and principles would you apply in the administration of our proxy voting policy that might differentiate you from competitors? C. Please provide several examples of applications of your proxy voting principles, strategies or tactics that you can demonstrate to have added value to your public plan clients that might not have been performed by others in the industry. 4

5 D. What do you see or foresee as the greatest challenges on the policy level facing proxy voting firms such as yours? 6. Fees: A. Itemize and quote the fees for research and voting services on an annual basis, based upon the current portfolio as described in Section II. Please describe how cost overages in any year will be charged. 5