APPENDIX C SERVICES QUESTIONNAIRE A. Corporate Information Provide a summary (no longer than 2 pages) within which you summarize the key value proposition of your organization. Ensure that you identify how the organization, service model, team assigned, services offered, transparency of business/revenue model, and overall economics are designed to provide exceptional services with a market-leading standard of care and dedication befitting the Florida Prepaid College Board. Please indicate month and year Respondent became operative. Please indicate the month and year Respondent began providing services. Please indicate SEC file number for the Respondent or any subcontractor(s) that will manage the account. Please indicate exact date of SEC 1940 registration for the Respondent or any subcontractor(s) that will manage the proposed product. List the office location (primary and secondary) from which the work is to be delivered. Are there any current organizational issues (i.e., mergers, acquisitions, personnel changes, business concerns, etc.) at your institution that we should know about? Have there been any organizational issues over the last three years? List “related” firms and provide a brief description of the services offered by each firm. List all investment management services offered by the firm (i.e. Domestic Equity, Foreign Equity, Domestic Fixed Income, etc). Does the firm provide any other product or service other than portfolio management? Please list. Provide details of any SEC, state regulatory, self-regulatory organization, or professional organization action taken against your firm or any of its owners, principals, or personnel. Provide details of all SEC fidelity bonds, errors and omissions coverage, and any other fiduciary insurance, which your firm carries. Describe all arrangements or understandings (written or oral) between your firm and any advisor, broker, law firm, or other individual or entity in connection with the solicitation or referral of clients between the firms. Has your firm adopted policies consistent with CFA Institute management/soft dollar guidelines? If so, provide details. Is there any current or pending litigation? If so, provide details. B. Personnel Attach an organizational chart and biographies of key personnel which would be assigned to this account, including length of experience and expected retention. Key personnel include investment officers, portfolio managers, and analysts. Complete the following chart: Firm Total Small Cap. Core Domestic Equity
The manager should generate a positive alpha calculated in accordance to the Jensen methodology. The manager’s tracking error relative to the Russell 2000 Index is expected to rank below the highest quartile of managers in the Small Cap peer group over rolling three year time periods. PART VIII INTERNATIONAL EQUITY INVESTMENT GUIDELINES OBJECTIVE The Board hopes to achieve its goal of reducing total portfolio volatility while enhancing total return through diversification of the equity asset class using multiple styles of management. International equity manager(s) will be retained as part of a multi-manager investment strategy. Their function within this strategy is to manage an equity only portfolio utilizing an active international equity style of investment. For purposes of this CIP, this strategy seeks access to companies that are domiciled outside of the US equity market. This allocation will be represented in the policy benchmark by the MSCI EAFE (i.e., Europe, Australasia, Far East) Index which is designed to measure the equity market performance of developed markets, excluding the US and Canada. The manager is expected to add value over a passively managed benchmark over a three to five year time frame. ASSET ALLOCATION The portfolio is expected to be fully invested at all times, relying on the manager's ability to generate return through the selection of securities and not through the timing of market movements. Therefore, during these time periods the manager shall be allowed to maintain a maximum cash position of only five percent. Asset allocation shall be determined based on the average position over any three month time period and shall operate within the following constraints set forth herein: EQUITY INVESTMENT GUIDELINES The prefers the manager to invest only in equity securities that have a publicly available operating history of at least three years. However, the manager can invest up to five percent of the portfolio in initial public offerings that have been spun off by a
The following ranges will apply to each of the age brackets within Option 11: Age Bracket Years to Enrollment Targeted Equity Allocation Allowable Equity Targeted Fixed Income Allocation Allowable Fixed Income Range 0 – 4 years 14 or more years 100% 98 - 100% 0% 0 – 2% 5 – 8 10 – 13 75% 73 – 77% 25% 23 – 27% 9 – 12 years 6 – 9 years 50% 48 – 52% 50% 48 – 52% 13 – 15 3 – 5 years 25% 23 – 27% 75 % 73 – 77 % Age 16 & 0 – 2 years 0% 0 – 2% 100% 98 - 100% Beneficiary account balances shall be moved to the next age bracket on the day following their birthdate during which they reach age 5, 9, 13 and 16. Accounts established based on the year’s to enrollment option will move to the next age bracket on the day following the beneficiaries birthdate when their projected enrollment year is 13, 9, 5 and 2 years from enrollment in college. IMPLEMENTATION All assets invested for the Program by the Investment Manager(s) after the adoption of this CIP shall conform to this Statement. The following portfolio-specific guidelines have been established to: Ensure that the managers continually adhere to all regulations administered by any regulatory authority charged with oversight responsibility Limit the Program’s exposure to unintended risks Ensure that each investment option adheres to its specific objectives Communicate objective, reasonable criteria of the Board's expectations to the managers. The following sections contain the investment guidelines and policies for each option of the Florida College Savings Program: OPTION 1 CAP GROWTH PORTFOLIO INVESTMENT GUIDELINES
The performance objectives specified in Options 7 and 9, above, will apply to each respective portion of Option 10. OPTION 11 AGE-RATED INVESTMENT GUIDELINES OBJECTIVE The age-rated investment option is intended to provide Program participants with an asset allocation profile that links the amount of volatility in the portfolio directly to the investment horizon of the participant. As the participant approaches the date at which account balances will be used for college expenses, a lower tolerance for risk is assumed and the equity component of the portfolio is reduced accordingly. ASSET ALLOCATION The assets of each participant’s account will be invested in fixed income (Option 7) and equity (Option 9) in accordance with the guidelines described under the “Investment Options” section of this CIP. The Board may periodically request an audit to ensure that participant balances are managed in accordance with these guidelines. INVESTMENT GUIDELINES The investment guidelines specified in Options 7 and 9, above, will apply to each account balance maintained under Option 11. PERFORMANCE OBJECTIVES The performance objectives specified in Options 7 and 9, above, will apply to each account balance maintained under Option 11.