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1071 -2018 First Overseas Discretionary Investment of Labor Pension Fund & Labor Retirement Fund & National Pension Insurance FundRequest for Service Proposal for Absolute Return Equity

In case of inconsistency between this RFP and the Investment Management Agreement, the Investment Management Agreement shall prevail.

Information Collection Form to be completed by candidates [The information below refers to the entity that does the actual investment management, unless otherwise indicated]

BC

The Bureau of Labor Funds (hereafter the "BLF") is currently seeking to appoint five Absolute Return Equity investment managers for Labor Pension Fund, Labor Retirement Fund and National Pension Insurance Fund separately. To be included in our consideration, please complete the tables below (Sections B to C). Please endeavour to keep responses accurate and concise, abiding by the word limits specified in the questions (where relevant).

It would be appreciated if you can complete this document and reply in conjunction with other application documentations prior to the application deadline as specified in the Application Guidelines. Soft copy submission is required.

Data as of:

09/30/2017

If not available, please provide the latest data with date specified

A Section A The Mandate

Mandate Profile

Fund

Labor Pension Fund

Labor Retirement Fund

National Pension Insurance Fund

Size

4US$400 million

per manager

0.8US$80 million

per manager

0.8US$80 million

per manager

Performance Target

USD 3-Month LIBOR +5% ()

To generate investment returns higher than USD 3-Month LIBOR +5% p.a. (net of all fees and taxes) during the mandate tenure

Risk target

12%

Standard deviation: not higher than 12% p.a.

Vehicle

Segregated portfolio

Mandate Benchmark

Asset Class

%Strategic Allocation (%)

Proposed Benchmark Index

Absolute Return Equity

100

USD 3-Month LIBOR + 5%

Proposed Product

Manager Name

Proposed Product

Applying Fund (Please check the applicable boxes)

Labor Pension Fund

Labor Retirement Fund

National Pension Insurance Fund

:,,107110711071Applicants can check more than one fund. For further details on investment guidelines and restrictions, please refer to Investment Guidelines for 2018 First Overseas Discretionary Investment of Labor Pension Fund, Investment Guidelines for 2018 First Overseas Discretionary Investment of Labor Retirement Fund, Investment Guidelines for 2018 First Overseas Discretionary Investment of National Pension Insurance Fund.


B ()Section B Data Collection Tables (1. Business)

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-

B.1

200Company history and organisational structure (In less than 200 words)

B.2

200Brief description of management team and its capability (In less than 200 words)

B.3

200Brief description of company culture and long term business goals (In less than 200 words)

B.4

300Please specify the level of resources dedicated into main area of business and this stated mandate (In less than 300 words)

B.5

(AUM)Firm-wide AUM and AUM for institutional clients

As of

/Firm/groups total AUM(10)(US$ bn)

Total AUM forInstitutional clients

AUM(10)(US$ bn)

No. of clients

2012/12

2013/12

2014/12

2015/12

2016/12

2017/09

B.6

Total assets (total AUM for all mandates) gained and lost

As of

Worldwide

For clients in Taiwan

Asset inflow (US$ mn)

Asset outflow (US$ mn)



2012/12

2013/12

2014/12

2015/12

2016/12

2017/09

B.7

Equity products AUM and number of clients

As of

Worldwide


AUM(10)(US$ bn)

No. of clients

AUM(10)(US$ bn)

No. of clients

2012/12

2013/12

2014/12

2015/12

2016/12

2017/09

B.8

Equity products assets gained and lost

As of

Worldwide






2012/12

2013/12

2014/12

2015/12

2016/12

2017/09

B.9

Proposed products AUM and number of clients

As of

Worldwide


AUM(10)(US$ bn)

No. of clients

AUM(10)(US$ bn)

No. of clients

2012/12

2013/12

2014/12

2015/12

2016/12

2017/09

B.10

Proposed products assets gained and lost

As of

Worldwide






2012/12

2013/12

2014/12

2015/12

2016/12

2017/09

B.11

/Revenue relating to asset management business, and contribution to the group/parent

As of

Revenue in the year(US$ mn)

% % contribution to the whole group or parent

2012/12

2013/12

2014/12

2015/12

2016/12

2017/09

B.12

/Profit of asset management business, and contribution to the group/parent

As of

Profit in the year(US$ mn)

% % contribution to the whole group or parent

2012/12

2013/12

2014/12

2015/12

2016/12

2017/09

P.1

B.13

Details and % of employee ownership of the firm (as of the end of year)

Descriptions:

As of

%% of employee ownership

2012/12

2013/12

2014/12

2015/12

2016/12

2017/09

B.14

A200

Please explain why the BLF should appoint your organisation to manage the stated mandate in Section A, in preference to your competitors? What are the unique advantages of your organisation? (less than 200 words)

B.15

Please explain how your organisation manages to absorb new business without affecting the existing clients interests.

B.16

(a) ()()For the 3 years ending the date which this RFP is submitted, has your organisation breached any related regulation; involved in any penalty case by the regulatory authority; been named as a defendant in various legal proceedings (including those with clients); has received subpoenas in connection with government investigations or involved in the seek of compensation arising in the ordinary course of business? (b) Please also provide details in relation to any major loss/ write-offs of your organisation over the past 1 year.(c) Please provide any latest developments related to the above to the BLF during the evaluation process.

B.17

200

Are these legal proceedings or investigations expected to have a material adverse impact on your financial condition or your ability to perform the service proposed?

B.18

()()Are there any notices to be given to prospective clients by the investment managers, required by your financial (securities) supervisory body? If yes, please provide (if no, please skip this question):(a) ()The name of the supervisory body(b) ()()Important points in the notice (The related notice, including Chinese translation, will be delivered to the BLF after execution of the

contract. The notice should be consistent with the guidelines of this mandate. When inconsistencies exist, the guidelines of this mandate shall prevail.)


B ()Section B Data Collection Tables (2. Investment Professionals)

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-

B.19

[1]Total number of investment profession-als [1] and average years of experience

As of

No. of Fund Mana-gers

Avg. Yrs. ofExperience

No. of Analys-ts


No. of OtherInvestment Profession-als


Total no. of Profess-ionals

With Indus-try

With Firm

With Indus-try

With Firm

With Indus-try

With Firm

2012/12

2013/12

2014/12

2015/12

2016/12

2017/09

B.20

Total number of investment profession-als related to the equity products

As of



No. of Analys-ts





With Indus-try

With Firm

With Indus-try

With Firm

With Indus-try

With Firm

2012/12

2013/12

2014/12

2015/12

2016/12

2017/09

B.21

Total number of investment profession-als related to the proposed product

As of



No. of Analys-ts





With Indus-try

With Firm

With Indus-try

With Firm

With Indus-try

With Firm

2012/12

2013/12

2014/12

2015/12

2016/12

2017/09

B.22

Turnover for all investment professionals- No. of joiners- No. of leavers

As of

Number of Joiners

Number of Leavers

Fund Manager

Analyst

OtherInvestment Professional

Fund Manager

Analyst


2012/12

2013/12

2014/12

2015/12

2016/12

2017/09

B.23

Turnover of investment professionals related to the proposed product- No. of joiners- No. of leavers

As of

Number of Joiners

Number of Leavers

Fund Manager

Analyst


Fund Manager

Analyst


2012/12

2013/12

2014/12

2015/12

2016/12

2017/09

B.24

Name of the key professionals of the proposed product and their roles

B.25

200 Appropriateness of resources required for investment activities (In less than 200 words)

B.26

200Please highlight the skillset of the team members and how they complement each other (In less than 200 words).

B.27

Name of key departures, roles and the respective departure reasons

B.28

Remuneration structure- %- Bonus as % of total remuneration- - Payment method- /- Lock-up period or deferred benefits- - Deferred CompensationIf the remuneration structures for the portfolio management team and the research team differ, please describe them respectively.

B.29

Basis of discretionary bonus (e.g. what % is related to investment performance, team based or individual based, etc.) and the funding source

B.30

Key portfolio manager(s) experience in managing the same or similar strategies. Please provide 2 relevant client references with contact information.

B.31

36, 200

Please briefly highlight the key changes and development over the past 36 months for the investment team which is responsible for managing the proposed product. (in less than 200 words)

B.32

CHow long has your current investment team responsible for the proposed product been in place? And how long has the key individual(s) been with the team? To what extent has your performance record shown in Section C been produced by the current investment team?

B.33

//How do you propose to notify BLF on changes to your team? (e.g. communicate beforehand / notify beforehand / notify after fact)

[1] CIOInvestment Professional is defined as any employees who are involved directly with or indirectly with the investment of the assets, i.e. including e.g. CIO, fund managers, analysts, economists, but excluding e.g. trader, dealer, back room staff and secretaries.

1071 -2018 First Overseas Discretionary Investment of Labor Pension Fund &Labor Retirement Fund & National Pension Insurance FundRequest for Service Proposal for Absolute Return Equity

B ()Section B Data Collection Tables (3. Investment Process)

-

-

B.34

500General descriptions of investment philosophy (In less than 500 words)

B.35

500Asset allocation process (In less than 500 words)

B.36

500Security research process (In less than 500 words)

B.37

: 500Portfolio construction process: Please describe in detail how investment ideas are brought into the investment portfolio and the interaction between portfolio managers and regional analysts (In less than 500 words).

B.38

3200Please describe the changes of the investment process over the past 3 years (In less than 200 words).

B.39

300Please describe the competitive advantages and innovative elements of the proposed product (In less than 300 words).

B.40

/2017930 [2]Asset allocation as of 30 September 2017 of typical /model portfolio and proposed product [2]

B.41

/ [2]Does your organisation have pooled funds/mutual funds for the proposed mandate [2]?

B.42

/[2]If yes, please provide the details for the pooled funds/mutual funds [2].

Fund Name:

________________

B.43

2017930

Funds total asset (as of 30 September 2017)

US$ ____________

B.44

The adopted benchmark:

________________

B.45

2017930

The number of institutional clients invested in the Fund (as of 30 September 2017) :

________________

B.46

2017930/Factsheet

Please provide the monthly Factsheet as of 30 September 2017 of the pooled funds/mutual funds

B.47

/2017930[2]Please provide the asset allocation as of 30 September 2017 for the pooled funds/mutual funds [2].

B.48

Risk management processPlease briefly describe the following internal control and auditing procedures:-- Performance evaluation- - Self regulating and ethics-()- Management of conflict of interest (including firewalls and confidentiality, etc.)-()- Risk control in trading process (including the standard and principles of selecting brokers, principle of trade allocation, whether collective trade exists, etc.)-- Internal operation control-- Internal auditing and monitoring Scheme

B.49

/Target risk (standard deviation, % p.a.) and performance of typical /model portfolio and proposed product

typical /model portfolio

proposed product

Target standard deviation

Target performance

B.50

What are the sources of return for this proposed product?

weighting

Sources of return

1

Last 1 year

3

Last 3 years

Long position return

Short position return

Dividend income

Costs related to short position

Currency

Residual

B.51

Based on the current market conditions, please provide and explain the expected asset allocation for the proposed mandate.

Sector

Long weighting%

Short weighting%

Net weighting%

Sector name

Sector name

Sector name

Sector name

Sector name

Sector name

Region

Long weighting%

Short weighting%

Net weighting%

U.S.

Europe

Japan

Asia

Latin America

EMEA

_____

Others___

Currency

Long weighting%

Short weighting%

Net weighting%

USD

EUR

JPY

_____*

Others___*

_____*

Others___*

_____*

Others___*

_____*

Others___*

*

Examples of Others include GBP, CHF, CAD, AUD, etc.

B.52

??Please describe the currency management process for the proposed strategy. Is active currency management adopted?

B.53

/(09/2016 - 09/2017) (, ) / (09/2016 - 09/2017)

Target average annual turnover (% p.a.) of typical /model portfolio and proposed product. Notes: Turnover defined as lesser of purchases and sales divided by mean value of portfolio = Min (Purchases, Sales) / (Mean value of portfolio between 09/2016 - 09/2017).

B.54

/ (09/2016 - 09/2017)Cash ratio of typical /model portfolio and proposed product (average between 09/2016 - 09/2017)

B.55

20179305Maximum drawdown over the last 5 years as of 30 September 2017.

B.56

20179305Drawdown duration (in months) over the last 5 years as of 30 September 2017

B.57

20179305USD 3-Month LIBOR

Sharpe ratio over the last 5 years as of 30 September 2017 (take USD 3-month LIBOR as the risk-free index)

B.58

20179305USD 3-Month LIBORSortino ratio over the last 5 years as of 30 September 2017 (take USD 3-month LIBOR as the risk-free index)

B.59

2017930

Market exposure of long positions as of 30 September 2017

B.60

2017930

Market exposure of short positions as of 30 September 2017

B.61

2017930beta

Market beta of long positions as of 30 September 2017

B.62

2017930beta

Market beta of short positions as of 30 September 2017

B.63

2017930

Number of holdings of long positions as of 30 September 2017

B.64

2017930

Number of holdings of short positions as of 30 September 2017

B.65

2017930

Average market capitalisation of long positions as of 30 September 2017

B.66

2017930

Average market capitalisation of short positions as of 30 September 2017

B.67

Investment performance attribution analysis capability and method.

B.68

/Approaches and solution to investing in markets that restrict direct investment or have low liquidity for typical /model portfolio and proposed product.

B.69

?(SRI)?How the transaction costs to be managed to maximize the efficiency of the mandate? Please provide the average transaction costs. Do you take the concept of corporate governance and Socially Responsible Investing into consideration in your stock selection process?

B.70

Please elaborate your proxy voting policy.

B.71

?What major difficulties (if any) do you envisage against the proposed target return?

B.72

? ?What is your expectation on the tax impact for this mandate? How is the tax impact minimised?

B.73

Capacity management

200

What is the expected capacity for this mandate under current resources with your firm and the key manager(s)? Is there any measure to protect existing clients? (In less than 200 words)

B.74

Please explain if there is any stop-loss mechanism and limit for the equity investment of the proposed product.

B.75

Does your transaction process or related risk management of the use of derivatives comply with your domestic regulations? Please include the following aspects in your explanation:- - The transaction process of derivatives (transaction process should include transaction analysis, decision making, execution and evaluation etc.)- - The risk controls in place for the derivatives transactions- ?- Are the segregated responsibilities of related people in derivatives transactions and its outsourcing covered by your internal audit and internal control?- - Expected derivatives to be used in the proposed product- - If the derivatives are used for non-hedging purposes, please elaborate their expected stop-loss mechanism and limit.

B.76

/:??1Please provide the usage of derivatives in typical /model portfolio (e.g. percentage of overall allocation). Is there any analysis and data in relation to the contribution from derivatives towards the overall investment portfolio performance? If yes, please provide the latest 1 year data.

B.77

/?(,)Please separately describe the use of derivatives for hedging purposes and non-hedging purposes of typical /model portfolio (items, values, percentage of overall allocation, etc)

B.78

In addition to institutional clients, what percentage of investment in the proposed product is from your firm or investment managers of your firm?

B.79

200Please specify the level of resources dedicated into main area of business and this stated mandate (In less than 200 words).

B.80

2018What would you expect for the global economic outlook in one year time and the relevant investment strategy? Please also provide the expected return (expressed in %) over year 2018 for the investment strategy adopted for this mandate. Please highlight the accuracy of the economic outlook in the past and provide the relevant performance data for the adopted investment strategy.

B.81

What measures will you use to control drawdowns in bear markets? Please also explain the measures used in the past under the downward pressure and their effectiveness.

B.82

Please describe the strategy for dealing with the short positions and how the strategy impacts the overall investment portfolio.

[2]

If more than one portfolio are used to construct the composite portfolio, please provide the relevant information of all the underlying portfolios simultaneously.


B ()Section B Data Collection Tables (4. Service)

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-

B.83

Primary servicing contact and location

B.84

Lead and back-up portfolio manager and location

B.85

Location of investment office

B.86

Please highlight how you will be able to provide satisfactory customer service, location of branch, and service team in Taiwan.

B.87

200Please highlight how you can demonstrate your commitment to Taiwanese market and the cooperation with local asset management industry in Taiwan, if selected by the Bureau. (less than 200 words)

B.88

( )Reporting capability (Please refer to the reporting requirements in the Investment Management Agreement and elaborate whether you can meet these requirements).

B.89

Please specifically describe the client training service and other services that you can provide to enhance clients capability, also your past experience of providing client training.

B.90

(:,)

Your proposed fee as per the breakdown. Please state other fees (if there are any, e.g. custodian, administration etc.). Please confirm that you would derive no other remuneration (other than those listed) from this portfolio.

:

Total proposed fee:

(Please make sure that the quoted fee includes all fees including investment management fee)

Breakdown of total proposed fee

1. :Investment Management fee

2.:():Other fees(please specify):

B.91

(Standard Fee Schedule)Standard fee scales for institutional clients.

B.92

()/Does your company entrust any services other than investment advice (such as back office operationsetc) to other organisations? If yes, please specify the name of the entrusted organisations and the scope of delegation.


C Section C Monthly Performance & Portfolio Breakdown

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-

Excel

Please provide monthly returns (both gross and net of fees) since the proposed products inception in US dollar terms (please indicate the fees that are deducted) and the corresponding benchmark returns as per the Excel spreadsheet provided separately. (Please also provide performance of relevant product if the performance for the proposed product is below 3 years)

In providing the returns, please describe the methodology behind.

Portfolio weights and returns by country should also be inserted into the Excel spreadsheet for calculation of standardised attribution analysis.

CFA InstituteGIPSCFA Institute GIPSCFA InstituteGIPSCFA InstituteGIPSGIPSGIPS

The evaluation and expression of the proposed product component investment performance shall be in line with the requirements of GIPS as provided by CFA Institute or the standards of other countries, provided that the applicant shall submit a certificate of equivalence of GIPS requirements at the time of application. If the applicant provide with composite performance, each component performance should be GIPS-compliant, or compliant of the standards of other countries. The composite performance does not necessarily be GIPS-compliant, or compliant of the standards of other countries but its construction should be explained in details. If the standards of other countries are adopted, apart from the original performance track record, please provide the performance data calculated based on GIPS standard. The certificate of equivalence of GIPS requirements shall be issued by local monetary authority, asset management association, accounting firms or GIPS verifiers.

: Note: Preference on performance data

To facilitate fair comparison of manager's performance, performance is preferred in the following order:

1

Performance of a portfolio tracking the mandate benchmark.

2

Performance of a composite portfolio tracking the mandate benchmark. If more than one portfolio are used to construct the composite portfolio, please provide the performance of all the underlying portfolios separately.

3

Performance of a composite portfolio tracking benchmark that is not the mandate benchmark but fulfills the requirement listed in the Application Guidelines. Please provide the performance of all the underlying portfolios separately.

Thank you, this is the end of the Information Collection Form - please provide the contact details of the person who completed this form for enquiry purpose.

Name:

Tel:

Email:

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