About Fresno County Employees’ Retirement System



About Fresno County Employees’ Retirement Association and Purpose of RFP

The Fresno County Employees’ Retirement Association (FCERA) is a retirement plan organized under the 1937 California Act establishing County Retirement Plans.

The plan has approximately $2.5 billion in plan assets with a current real estate allocation of 2%.

The purpose of this RFP is to select a core private real estate investment manager for a $50 million allocation for the FCERA retirement plan. Wurts & Associates will be assisting FCERA staff with the RFP process and manager selection.

Criteria For Selection

FCERA will seek to select a core private real estate manager based on the following criteria:

• Experience and stability managing real estate

• Competitiveness of fund performance

• Competitiveness of fees

• Appropriate fund diversification and use of leverage

• Thoroughness of RFP response

Response Requirements

Responses are due to Wurts & Associates no later than 5:00 pm (PDT) on Monday, May 8th, 2006. Responses should be sent via email to JWasnock@.

Please be sure the e-mailed RFP responses are not in a read-only format such as PDF. Word format is preferred. Attachments may be in PDF or similar format.

Upon receipt of the responses, Wurts & Associates will evaluate the information and prepare a report for FCERA staff. Together, they will review the information and select finalists. If you have any questions regarding this RFP, please email them to John Wasnock at JWasnock@.

Please provide a proposal to provide real estate investment management services to the Fresno County Employees’ Retirement Association by responding to the following questions:

Contact Information

Please provide the name, title, and contact information for the individual(s) that will be involved with this client relationship and Request For Proposal.

Organization Background

Please provide a brief history of your firm.

When was your company founded?

Where is the location of your headquarters? Please detail other offices you maintain.

Describe the ownership structure of your firm.

Have there been any changes in ownership over the past five years? If so, please explain.

Is the firm a Registered Investment Advisor?

Is the firm a Qualified Professional Asset Manager (QPAM)?

Firm assets by client type (as of 3/31/06):

| Client Type |Assets Managed ($mm) |

|Top of Form | |

|Corporate | |

|Public Fund | |

|Union/Multi-Employer | |

|Foundation & Endowment | |

|Healthcare | |

|Insurance | |

|High Net Worth Individuals | |

|Wrap Accounts | |

|Mutual Funds | |

|Sub-advisory | |

|Other* | |

|TOTAL | |

*Provide detailed description of “other”:

Firm assets by product type (as of 3/31/06):

|Product Type |Assets Managed ($mm) |

|U.S. Equity | |

|U.S. Fixed Income | |

|Non U.S. Equity | |

|Non U.S. Fixed Income | |

|Balanced | |

|Real Estate | |

|Alternatives | |

|Other* | |

|TOTAL | |

*Provide detailed description of “other”:

Administration and Staff Information

1. Please provide an organization chart and a discussion of your staff structure.

2. Please list your firm’s key professionals in the format below:

|Name |Title/Function |Years with Firm |Total Years |

| | | |Experience |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

3. Provide the total number of real estate employees broken down by function in the format below:

|Function |Professionals |Non-Professionals |Total Employees |

|Acquisitions | | | |

|Client Relations | | | |

|Dispositions | | | |

|Finance/Accounting | | | |

|General Counsel | | | |

|Information Technology | | | |

|Portfolio Management | | | |

|Property Management | | | |

|Real Estate Securities | | | |

|Real Estate Research | | | |

|Other: | | | |

|TOTALS | | | |

4. How does the firm address turnover of investment professionals? Describe the firm’s compensation structure.

5. Describe the firm’s plans for succession, if any.

Investment Philosophy and Approach

6. Describe your firm’s investment philosophy with regard to real estate investing as part of a multi asset class portfolio.

7. Describe the research process your firm utilizes for real estate. What is distinctive about the research process relative to your peers?

8. Acquisitions

a. Provide an overview of the acquisition process.

b. How does your firm source new investment opportunities?

c. Describe your due diligence and approval process for new acquisitions.

d. How does the firm allocate assets to investment accounts/funds within the firm?

9. Portfolio Management

a. Describe your firm’s asset and portfolio management process.

b. What is the typical number of accounts and value of assets managed per portfolio manager?

10. Property Management

a. Does your firm or affiliate provide property management services?

b. Under what circumstances will your firm or affiliate provide in-house property management services? How are fees determined?

c. If your firm uses third party property managers, what process does it use to select such firms?

11. Dispositions

a. Provide an overview of the disposition process.

b. Does your firm have a dedicated Dispositions group?

12. What are your firm’s competitive advantages over other real estate advisors?

Fund Specific Information

13. What is the name of the fund you are proposing?

14. What is the inception date of the fund?

15. How do you define your strategy in terms of style (core, value added, opportunistic, etc.)?

16. What is the legal structure and type of fund (closed-end, open-end, private REIT, etc)?

17. What are the liquidity terms of the fund?

18. Has your firm made any co-investments with the fund? If so, what is the size of the co-investment?

19. Is there a current investment queue for the fund proposed? If so, what is the asset level in your queue?

20. If a decision was made to select your firm for a $50 million placement by the end of June, what would be the estimated timeframe for investing the capital? Would the capital be called all at once or over a period of installments?

21. Please describe in detail the investment strategy and objective of the fund.

22. Current number of clients invested in fund?

23. Detail the growth of the fund using the table below:

|  |# |Amount of Assets |# Clients |Amount of Assets |Gross Asset Value at End of|

| |Clients Gained |Gained ($ millions) |Lost |Lost ($ millions) |Period |

| | | | | |($ million) |

|2002 |  |  |  |  |  |

|2003 |  |  |  |  |  |

|2004 |  |  |  |  |  |

|2005 |  |  |  |  |  |

|YTD 2006 |  |  |  |  |  |

24. Please list all investment professionals for this product below:

|Name |Title/Function |Years with Firm |Total Years |

| | | |Experience |

| | | | |

| | | | |

| | | | |

| | | | |

| | | | |

25. Please detail any departures on the product over the last five years. Include name, title and year of departure.

26. Describe the Fund’s valuation process. How often are external appraisals performed?

Portfolio Characteristics

27. What is the current number of properties in the fund?

28. Are there any mortgage or debt investments in the fund? If so, how many and what is the overall percentage?

29. Describe the Fund’s use of leverage. What are the maximum allowable percentages at the fund and property level?

30. What is the current leverage? What has the range of leverage been over the last five years?

31. Please complete the table below detailing the Fund’s diversification as of 3/31/06:

|Property Type |% |Geographic Region |% |Property Size |% |

|Office |  |East |  |$0 - $10 million |  |

|Retail |  |West |  |$10 - $20 million |  |

|Residential |  |Midwest |  |$20 - $50 million |  |

|Industrial |  |South |  |$50 - $100 million |  |

|Hotel |  |  |  |$100 - $200 million |  |

|Other |  |  |  |Over $200 million |  |

|Total |  |Total |  |Total |  |

32. Please complete the table below detailing the Fund’s diversification by life cycle as of 3/31/06:

|Life Cycle |% |

|Existing |  |

|Redevelopment |  |

|Developmental |  |

|Land | |

|Total |  |

Performance Summary

33. Please complete the table below with historical quarterly performance since 1996:

|Year |Quarter |Income |Appreciation |GROSS |NET |Dividend Paid |

| | | | |Total Return |Total Return |Out |

|  |  |  |  |  |  |  |

|  |  |  |  |  |  |  |

34. If the fund you are proposing has less than 10 years of history, please include the information above for your firm’s core real estate composite.

35. Describe the distribution process. Do investors receive dividends?

Fees

36. List all fees associated with the vehicle.

37. What are the estimated total fees for a $50 million account?

38. How are fees paid?

39. What is the minimum investment size?

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