FOR RELEASE
September 25, 2008

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Kate Hendrickson
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New Model RFPs Now Available to Meet the Needs of Small Institutional Investors
Four Industry Groups Work Together to Create New Tools

DENVER—September 25, 2008—Three new Model Request for Proposals (Model RFPs)—one each for equity investments, fixed income investments, and real estate investments—are now available to help smaller institutional investors streamline and improve their processes of selecting money managers. The Model RFPs are the result of collaboration between the CFA Institute Centre for Financial Market Integrity, Investment Management Consultants Association, Institute for Private Investors, and the Investment Adviser Association. They were unveiled this morning at IMCA’s Fall Professional Development Conference in Denver.

“We heard from CFA Institute members that there is a real need in the industry for guidelines and templates that help smaller investors appropriately evaluate managers without greatly taxing their limited resources,” said Kurt Schacht, CFA, managing director of the CFA Institute Centre. “The Model RFP is one initial tool in the longer process of reviewing and selecting a manager. Each money manager search should be tailored to an investor’s specific circumstances and situation.”

A group of volunteer experts from each of the four partner organizations and other industry experts worked together for more than a year to create the Model RFPs. Each Model RFP is separated into three sections: (1) firm information, (2) product information, and (3) performance information, with questions that can be customized to fit an investor’s particular needs. Investors are encouraged by the template to ask questions of potential money managers about firm personnel, compliance history and procedures, governance and proxy structure, and trading and soft dollar practices. Other questions address the specific proposed product, including investment philosophy and process, research, and fees, as well as product performance and compliance with the Global Investment Performance Standards (GIPS^®). The GIPS standards are a set of standardized, industry-wide ethical principles that provide investment firms with guidance on how to calculate and report their investment results to prospective clients.

“Greater consistency and a more targeted focus in the RFP process would serve the interests of both investors and investment managers,” said David Tittsworth, executive director of the Investment Adviser Association. “The Model RFP project is a positive step toward that goal.”

“This project is a perfect example of the positive outcomes that can occur when like-minded organizations work together,” said Dede Pahl, IMCA’s executive director. “The Model RFPs that resulted from this collaborative effort showcase a variety of universal best practices, and provide assistance to investment professionals with the sometimes arduous RFP process.”

“Due diligence is more important than ever today, and these templates offer concrete assistance to anyone who seeks a more systematic approach to manager selection” said Charlotte Beyer, founder and CEO of the Institute for Private Investors. “Trusted advisors to families will benefit as well by using these Model RFPs.”

The Model RFPs are available on the Web sites of the partner organizations and at IMCA’s Fall Professional Development Conference. IMCA members can access the Model RFPs in the "Membership" area of "My IMCA."