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  • External Advisors

    ERS contracts with external investment advisors to complement internal management
    efforts. Interested in being an external advisor to ERS? Begin the registration process.

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  • Considerations for External Advisors

    • Must be a bank, insurance company, or investment advisor as defined by the Registered Investment Advisors Act of 1940.
    • Established organization (3 years or more)
    • Emerging managers on a best effort basis
    • Long-term track record (at least 3 years)
    • Stable investment team
    • Alignment of interest
    • Integrity of investment process

    Advisory relationships require that all trades be conducted through ERS

    1. Trading responsibilities are kept at ERS.
    2. Advisor's trading ideas are communicated to ERS.
    3. ERS staff review trade ideas.
    4. Trades are approved by the Executive Office.
    5. ERS will book trades.
    6. ERS' custodian runs official performance numbers
    7. Proxy voting and corporate action decisions are retained by ERS. Review the Proxy Voting Policy and Guidelines.

     

  • Process for evaluating eligible advisors by ERS

    Stage 1 - Sourcing and Advisor Evaluation

    • Create list of External Advisors
    • Selection process

    Stage 2 - Portfolio Construction and Risk Management

    • Portfolio optimization
    • Qualitative assessment
    • Risk analysis
    • Consultant due diligence and letter of prudence
    • Write-up
    • Recommendation
    • IIC/IAC review and Board approval

    Stage 3 - Fee, Legal and Operation Set-up

    • Fee negotiation
    • Investment guidelines and legal negotiation
    • Coordination of operation set-up
    • Funding arrangements

    Stage 4 - Monitoring, Research and Portfolio Rebalancing

    • Portfolio monitoring
    • Market insights and perspectives shared with internal management
    • Rebalancing of Portfolio