China Investment Corporation Limited
Notice for the Appointment of External Investment Managers
China Investment Corporation Limited (hereafter the “CIC”) plans to select a group of external investment managers for its business needs. Here below is the notice.
A. Qualification Requirements
To be considered in the selection process, the Applicant shall voluntarily participate in the selection process and must meet all of the following qualification requirements:
1. Financially stable, strong reputation, and robust risk management processes that conform to the laws and regulations of the home country or region as set forth by the regulatory bodies of such home country or region;
2. Applicants must have more than 6 years (as at September 30, 2007) of investment experience in the asset class they apply for; and the firm’s total assets under management must not be less than US$5 billion (or equivalent currencies);
3. Investment professionals responsible for the CIC mandates must have the appropriate qualifications in their home country or region;
4. Strong governance structure and robust internal/compliance/risk management systems; senior management and investment professionals must conform to similarly high standards as the firm they represent;
5. Have not been severely penalized by the regulatory bodies over the past three years in the home country or region (as at 12 December 2007).
B. Mandate Types
External investment managers for the following mandate types shall be selected:
1. Global Equity Active
Benchmark: MSCI All Country Index, measured in USD, dividends reinvested
Target Rate of Return: The annual net-of-fees return is the benchmark rate of return plus 300 basis points.
2. MSCI EAFE Active
Benchmark：MSCI EAFE , measured in USD, dividends reinvested
Target Rate of Return: The annual net-of-fees return is the benchmark rate of return plus 200 basis points.
3. Emerging Market Active
Benchmark：MSCI Emerging Market Index, measured in USD, dividends reinvested
Target Rate of Return: The annual net-of-fees return is the benchmark rate of return plus 300 basis points.
4. Asia ex
Benchmark: Please provide a suitable benchmark.
C. Term of Appointment
There is no specific length of Appointment term. Upon execution of the contract, any one party may terminate the contract with prior written notice as stated in the contract.
D. Selection Procedure
The selection procedure is divided into the following stages: Application, Preliminary Review, Second Review, Fees & Contract Negotiation, and Result Announcement. The CIC shall select managers based on the application documents provided by the Applicant, the interview, the experience of the investment teams and track record of the specific asset class, the management fee proposal, and other relevant considerations.
First Stage: Application
Applicants wishing to participate in the selection procedure must bring along the certification documentation (Letter of Attorney) in person to file an application to the CIC during the period from 12 December to 20 December 2007.
Upon reviewing the qualifications of the applicants, the CIC shall dispatch the relevant application documents to the applicants (including the Request for Proposal, the investment guidelines, the application guidelines, and other relevant documents)
Second Stage：Preliminary Review
Applicants must submit all the application documents to the CIC before 17:00 on January 15 2008.
The CIC shall conduct its preliminarily review based on the application documents to determine which Applicant proceeds to the Second Review stage.
The CIC shall notify the successful Applicants for the Second Review stage.
Third Stage: Second Review
The Second Review stage will be an in-person interview.
The CIC shall form a Second Review Committee (“the Committee”) to evaluate the qualified applicants.
Based on the results of the Second Review, the Committee shall submit a list of qualified applicants for the CIC to decide on the list of finalists. The CIC shall then notify the successful Applicants for the Fee and Contract Negotiation stage.
Fourth Stage: Fee and Contract Negotiation
Based on the proposed fee arrangement submitted by the finalists, the CIC shall negotiate with the finalists and decide on the final fee arrangement.
The CIC shall negotiate the contractual terms with the finalists and sign the contract.
If both parties cannot agree on the contractual terms or the proposed fee arrangement, the CIC shall negotiate with the next most qualified applicant based on the selection results.
Fifth Stage: Result Announcement
E. Enquiries and Contact Details
For any enquiries about the selection procedure, please visit the CIC website or contact the designated contact persons of CIC.
CIC website:
www.china-inv.com
Applicant may access the password-protected web page for details about the selection of external investment manager.
Contacts:
Li Ya Yan Yunfei
Tel.: (8610) 5836-5825 5836-5916
Fax: (8610) 5836-5844 5836-5951
E-mail: [email protected]
Address: Ping An Mansion,
China Investment Corporation Limited
December 12, 2007