State Universities Retirement System of Illinois

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1 State Universities Retirement System of Illinois Serving Illinois Community Colleges and Universities 1901 Fox Drive Champaign, IL (217) (217) (FAX) Investment Department To: Investment Committee From: Daniel L. Allen Date: October 3, 2013 Re: Investment Consultant Search Recommendation Overview At the May 2, 2013 Investment Committee meeting, the Board of Trustees authorized a search to identify qualified candidates for the role of external investment consultant. The search team for the project included SURS Trustees and Staff. Trustees McCrohon, Engstrom, Johnson, and Matthews participated in initial due diligence interviews on August 14, 15 and 22, 2013 with each of the six investment consulting firms responding to the Request for Proposal (RFP). At the September 12, 2013 Investment Committee meeting, the following three firms were identified as finalists in the search: Investment Consultant Callan Associates Hewitt EnnisKnupp NEPC Location / Servicing Office San Francisco / Chicago Chicago / Chicago Cambridge, Mass. / Chicago Trustees McCrohon, Engstrom, Johnson, and Figueroa joined Bill Mabe, Dan Allen and Doug Wesley in the on-site due diligence interviews for Hewitt EnnisKnupp ( HEK ) and Callan Associates ( Callan ) conducted in Chicago on September 17-18, 2013, respectively. In addition, Trustee McCrohon participated, along with Dan Allen and Doug Wesley, in the NEPC on-site due diligence interview conducted in Boston on September 20, Search Process The search process has been conducted consistent with legislative requirements and SURS normal practice as defined in the Investment Policy: SURS drafted a request for proposal, which was issued in May SURS posted the RFP on its website and advertised in Pensions & Investments as well as the state newspaper. The search team reviewed RFP responses based on the following evaluation criteria: o Organization / Business Model - Stability, ownership, independence o Consulting Philosophy / Strategies - Investment philosophy, expertise in wide variety of investment strategies o Investment Staffing / Depth of Resources - Depth and expertise of consulting staff, research capabilities

2 o Proposed SURS team - Qualification and experience of individuals on SURS team o Performance Reporting and Risk Analytics - Investment manager data collection and monitoring systems, risk management tools, performance measurement systems o Consulting fees for services requested Interviews were conducted with key personnel of all six respondents. On September 12, 2013, the Board narrowed the list of candidates to the following finalists: o Callan Associates o Hewitt EnnisKnupp o NEPC SURS staff and Trustees conducted on-site meetings with the finalist firms. Each meeting lasted approximately four hours and covered the evaluation criteria listed above. References were interviewed for each of the finalist candidates and were satisfactory. Fee proposals have been reviewed. Finalist candidates are scheduled to present to the SURS Investment Committee at the October 17, 2013 Investment Committee meeting. Expectations of the Investment Consulting Relationship Staff believes the three firms presenting on October 17 th are all capable of servicing the relationship. The areas of expertise which should be considered in identifying a premier investment consultant to partner with SURS include: Commitment of Necessary Resources to Support SURS Board and Investment Staff Ability to Provide Trustee and Staff Education and Training Willingness to Listen and Be Challenged Recommendations Regarding Strategy, Investment Policy and Asset Allocation Depth of resources in all Asset Classes, including defined contribution plans Firm Independence Expertise of the Public Pension Fund Industry Awareness of the Illinois Legislative Climate Extensive Knowledge of Minority, Female and Persons with a Disability-Owned Investment Firms Ability to Lead Manager Searches for Complex Investment Strategies Insight of the Latest Trends, Topical Issues and Access to Best Thinking Diversity of the Organization Reasonable Fee Structure Willingness to Provide Recommendations Outside of the Norm Evaluation of Candidates The following evaluation criteria have been used in the search process: Organization / Business Model Proposed SURS Team Consulting Philosophy / Strategies Performance Reporting and Analytics Staffing / Depth of Resources Fees

3 The search team developed a matrix with comments on each finalist to better compare the firms. The three firms were similar in the areas of Staffing / Depth of Resources and Proposed SURS Team. Each firm is similar with respect to strengths in the defined contribution marketplace, with each firm having a dedicated team of DC specialists. More significant differences emerged, however, in the other four categories. In the Organization / Business Model category, NEPC scores best due to its independence and employee ownership. Callan also is employee-owned but has the perception of potential conflicts of interest due to its business model. HEK does not score quite as well in this area due to changes in its business model over the past couple of years and its status as a wholly owned subsidiary of Aon and the remaining uncertainty created resulting from its acquisitions, first by Hewitt Associates, followed by Aon Corporation, three years ago. In the Consulting Philosophy / Strategies category, Callan appears to be more traditional and conservative in its investment approach. NEPC has a greater focus on alternative investment strategies and other newer strategies. HEK, formerly favoring more traditional, conservative strategies, appears to have migrated toward a more aggressive approach. Callan has the largest client base in private equity ($55 billion) and real estate ($62 billion) followed by HEK ($35 billion in private equity and $20 billion in real estate) and NEPC ($23 billion in private equity and $6 billion in real estate). In terms of Performance Reporting and Risk Analytics, the search team believes Callan has an advantage. Callan is the only firm to have its own proprietary manager performance database. In addition, Callan provides its clients access to its databases and performance analytics software, which provides potential efficiencies with current staff reporting. Finally, Callan and NEPC provided similar fee proposals over the five year term and were both significantly lower than the fee proposal provided by HEK. A five-year fee analysis is provided in the information following this memo. The fee analysis assumes one custodian/securities lending search, one public market and one private market search per year, two asset/liability studies (one is included, second incurs additional cost), an SMP provider search and change of one SMP investment option. Callan s fee proposal averages approximately $543,000 per year, followed by NEPC ($550,000 per year) and Hewitt EnnisKnupp (ranges from $681,500 to $743,000 per year depending on the ultimate cost of each search). Investment Committee Evaluation of Candidates The Exhibits following this memo are designed to assist the Committee in the consultant evaluation process and include: Exhibit A - Matrix comparing key information for each of the finalist candidates Exhibit B - Brief summary profile of each finalist Exhibit C - Comparison of distinguishing characteristics for each candidate Exhibit D - Five-year fee analysis Exhibit E - Blank rating sheet

4 Conclusion The SURS consultant search team believes the comprehensive search process conducted over the past several months has resulted in the identification of three highly qualified, experienced and well respected finalist candidates. Each of the three candidates is capable of serving as general investment consultant for a large, complex public plan such as SURS. Exhibit 3

5 Exhibit A Exhibit 3 SURS INVESTMENT CONSULTANT SEARCH SUMMARY OF CANDIDATES October 2013 Callan Associates Hewitt EnnisKnupp (AON) NEPC Organizational Overview Clients / Assets SURS Consultants Headquarters / Service Team Location San Francisco, CA / Chicago, IL Chicago, IL / Chicago, IL Cambridge, MA / Chicago, IL Meets SURS Minimum Qualifications Willing to Assume Fiduciary Role / Registered Adviser Professional Staff Turnover (5yrs) 25 additions / 10 departures 13 additions / 14 departures (partners only) (12% turnover across all position types over past 1 year) 46 additions / 22 departures Exp with Plans that have Serious Funding Issues # Clients / # Public Fund Clients 366 / / / 61 # Consultants Avg Client/Consultant Ratio 33 General Consultants / 17 Fund Sponsor Consulting Group / 39 Specialty Consultants 70 Manager Research, 19 Investment Policy Solutions, 11 Global Asset Allocation, 7 Fiduciary Services 55 client service (52 FTEs) / 27 asset alloc, trad & alt assets research Varies by client. 10 to to 15 to 1 for smaller clients 10 to 1 6 to 1 Total Client Assets $1.8 Trillion $2.2 Trillion $716 Billion Assets of Public Fund Clients $1.5 Trillion $1.9 Trillion $408 Billion Largest Public Fund Retainer Client CALPERS, CALSTERS, FSBA US Treasury ($700 B), FTSA ($310B), NY Common Retirement Fund ($120 B) Confidential; includes OPERS and SWIB ($80B) Avg Assets of Public Fund Clients $12.1 Billion $43.3 Billion $11.7 Billion Clients Gained / Lost Last 3 Yrs 100 / / 68 Not disclosed / 22 lost (institutional cients with assets >$100M) Lead/Backup SURS Consultant John Jackson, CFA (Lead) Angel Haddad Greg Allen PJ Kelly, CFA, CAIA (Lead) Russ Ivinjack (Senior Resource) Douglas Moseley (Lead), Kevin Leonard, Kristin Finney-Cooke, CAIA, Kevin Cress, CFA (for DC plan) Yrs Consulting Experience 20 / 11 / / / 6 / 6 / 20 Yrs with the Firm 1 / 1 / / / 6 / 3 / 1 # of Clients for Lead / Backup Consultant 7 / 5 / Not provided 10 / 8 7 / 9 / 6 / 2 Max Number of Clients Assigned to Consultant Up to 15, 10 average Depends on the complexity of the client, average of 10 clients 6 (average) Broker/dealer affiliate? No, PE only through Hewitt EnnisKnupp Secondary Market Services, LLC. AON Benfield is an insurance broker-dealer operating independently from HEK No Independence Sell services to managers? No Provide investment management services? No Lines of Business and % of Revenue Fund Sponsor Consulting 69% revs, 158 employees Independent Advisor Group 8% 8 employees Institutional Consulting Group 18% revs, 4 employees Trust Advisory Group 5% 5 employees Aon's two main business lines are risk solutions, and HR Solutions. HEK is part of HR Solutions. Risk Solutions $7,632 HR Solutions $3,925 Investment consulting 100%

6 Exhibit A Exhibit 3 Callan Associates Hewitt EnnisKnupp (AON) NEPC Manager Databases / Other Alternative Assets Self Managed Plan Investment Philosophy / Portfolio Structure Research Typical Active/Passive Allocation Frequency of A/L Studies HEK prefers core passive allocations and Depends on the client, A sample of largest satellite active managers. Index allocations Illinois clients illustrates a passive allocation provide risk and costs controls % of 23% - 37% including both fixed income passive in US equity; smaller alloc to and equity strategies passive in int'l eq and fixed income. Depends on client characteristics, 3-5 years average Every 3-5 years or when major changes to the financial system occur % passive in US LC equity; smaller alloc to passive in US SC and int'l eq 3-5 years Experience with Minority Firms Frequency of On-Site Due Diligence with Clients' Mgrs Do not have a set schedule; focus is on managers who have common clients, org./performance issues or products of particular interest Every 1-3 years Did not provide Approved Manager List / # of Firms No / approximately 700 / approximately 570 Sec Lending w/ Custodian or 3rd Party Depends based on client's asset size, port. structures, risk management and aversion to risk. Callan is a firm believer that risk management takes precedence over revenue generation HEK believes there is merit to non-custodial lending models Both Recommend Transition Manager Pool Recommend Permanent Cash Allocation Did not address in answer directly. based on SURS experience with firm. Typically not recommended for two reasons 1) Belief in fully invested portfolios 2) If liquidity concerns exits, there are strategies for maintaining market exposures Maintaining a pool of transition managers is best practice, however TMs can be hired on an ad-hoc basis Typically only a frictional amount of cash is recommended. This recommendation varies based on the liquidity needs of the client. For those with high liquidity demands, an allocation to cash may be appropriate 1% target due to significant monthly net cash outflows Capital Market Assumptions 5-10 year 10 year 5-7 year Risk Budget Model Manager Databases Used Risk exposure should suit the situation and risk tolerance of the client. A three-pronged approach: 1) Allocation of market risk in light of liabilities, cash flows, time horizon and risk tolerance. 2) design of asset class implementation, budgeting active management risk. 3) explicit incorporation of liquidity needs and liquidity risk Proprietary, supplemented with data from Mellon and InvestorForce Are any investment managers generating an undue amount of benchmark risk? Do the contributions to risk from each manager coincide with expectations for being compensated for those risks? Is the fund spending its active management risk efficiently? Proprietary, evestment Determine contribution to portfolio's volatility from each asset class. evestment Alliance, WinTech, Ibbotson, Style Advisor, Morningstar, Private i, Plan Sponsor Network, proprietary # Firms in Database 1,406 12,962 2,898 # Products in Database 7,388 24,735 13,163 # Minority Firms in Database 150 firms, offering 300 products (evestment) Client access to consultant resources Educational offerings Provider due diligence Private equity experience Real estate experience Either lead generalist consultant or 5 member specialist group in Chicago Callan Investments Institute to disseminate research; Callan College; customized program presentations Comprehensive database updated at least annually by all major providers; onsite visit bi-annually with providers serving clients and quarterly visits at Callan's office $55 billion in client assets $62 billion in client assets 16-member DC Plan Consulting Team Customized education sessions based on SURS needs 130+ providers in proprietary database; meet routinely on-site and at office $35 billion in client assets $20 billion in client assets Lead consultant and team of 18 DC consultants and analysts Customized educational programs, annual client conference Regular due diligence on-site and office visits, conducts annual Plan and Fee Survey, maintains proprietary database of 24 providers $23 billion in client assets $6 billion in client assets Provide Educational Opportunities Adopted "PRI" No (Aon Hewitt UK) No Board Member Conflicts Nothing Disclosed Nothing Disclosed Nothing Disclosed

7 Exhibit B Callan Associates, Inc. Organization Callan Associates, Inc. ( Callan ) is an independent, privately owned investment consulting firm. Callan was formed in 1973 when Edwin Callan and other professionals purchased the performance measurement division of Mitchum, Jones & Templeton. Callan has provided consulting services to U.S. tax-exempt clients since the firm s inception. Callan is registered as investment adviser under the federal Investment Advisers Act of The firm is headquartered in San Francisco, CA, with additional offices in Chicago, Atlanta, Denver and Florham Park, NJ. Beginning in 1989, Ed Callan began the transition of ownership to second and third generation employees. That transition was completed at the end of Currently, 71 active employees own the stock of the firm (100% employee-owned). Callan has four distinct business divisions. The Fund Sponsor Consulting Group is the primary line of business, generating 69% of Callan s annual revenue. Staffing Callan s staff consists of 171 employees, of which over 150 associates are dedicated to Fund Sponsor Consulting. Within the Fund Sponsor Consulting group, 33 general consultants are assisted by a team of 39 specialty consultants, 17 Fund Sponsor support professionals, and 26 client report services specialists. Remaining staff in the Fund Sponsor Consulting group provide information technology, database/analytic solutions, or administrative support. Consultants working with clients who have large and complex investment programs typically do not have more than eight to ten client relationships. The proposed SURS consulting team includes John Jackson, CFA, Senior Vice President, Yosangel Haddad, Vice President, and Greg Allen, President and Director of Research. John Jackson and Angel Haddad will serve as the primary consultants, while Greg Allen will serve as a resource on projects as he has in the past three years of the relationship. Clients/Assets Callan has 366 clients with assets under management of $1.8 trillion. Callan has 123 public fund clients that are collectively responsible for $1.4 trillion in assets. Callan maintains a diverse client base, which includes public, corporate, endowment, not-for-profit, and Taft-Hartley funds. The average assets of Callan s public fund clients are $12.1 billion. Philosophy Callan utilizes a custom approach to consulting. By understanding the evolution of each client s investment program and using a disciplined process, they are able to make optimal long term decisions based on their unique circumstances. Callan maintains general beliefs that underpin the firm s investment advice across all clients that would impact portfolio structure recommendations. First, they are ardent believers in diversification at the total fund level and in each asset class. Second, they believe that the investment decisions for each client should be driven by a carefully constructed longterm strategic investment plan. This plan should be reviewed regularly and take into account the unique liability structure or spending requirements of the plan; its governance structure and staffing levels; its size, and the risk tolerance and investment experience of the plan s fiduciaries. Callan recommends a formal review of asset allocation policies every three to five years, unless changes in the Plan s circumstances warrant it to occur more frequently.

8 Exhibit B Hewitt EnnisKnupp, Inc. Organization Hewitt EnnisKnupp, Inc. ( Hewitt EnnisKnupp ) is a global investment consulting firm with headquarters in Chicago and multiple U.S. offices. The firm was founded in 1981 as Ennis, Knupp & Associates ( EnnisKnupp ) by Richard Ennis and Jim Knupp, who established the first consulting practice at A.G. Becker (the forerunner of SEI), in Hewitt EnnisKnupp was formed in 2010 when Hewitt Associates, a global human resources and outsourcing company, purchased Ennis, Knupp & Associates and was subsequently acquired by Aon, a global provider of risk management services, insurance and reinsurance brokerage, and human resource consulting and outsourcing. The firm is currently an indirect wholly owned subsidiary of Aon, a publicly held company. Aon s two main business lines are Risk Solutions and Human Resources Solutions. Hewitt EnnisKnupp is a component of HR Solutions, which, as a group, contributed 66% of Aon s total revenues in Staffing Hewitt EnnisKnupp has a staff of 305 employees, of which 273 are considered consulting staff. Other professionals in this area include 70 professionals in manager research, 19 professionals in investment policy solutions, 11 professionals in global asset allocation, and 7 professionals in fiduciary services. The average client to consultant ratio is 10 to 1. The number of clients with whom each primary consultant works is determined by the complexity of each assignment and the ancillary responsibilities of the consultant. PJ Kelly, Partner, would lead the SURS service team and serve as primary general consultant. Cate Polleys would serve as the lead real estate consultant, and Russ Ivinjack, Senior Partner, would serve as a senior resource to the team. A general and real estate consulting manager and performance analysts would assist with the work product and provide additional general support to PJ and Cate. In addition, Jeanna Cullins, Partner, and Karen Rode, Partner, will serve as specialty consultants for the SURS relationship for fiduciary services and private equity, respectively. Clients/Assets Hewitt EnnisKnupp serves a total of 478 U.S. clients, representing assets of $2.2 trillion. Of the 478 clients, 44 are public fund clients, representing $1.9 trillion in assets. Hewitt EnnisKnupp s largest public fund clients include the U.S. Treasury ($700 billion) and Federal Thrift Savings Plan ($310 billion). Average assets of public fund clients are $43 billion. Philosophy Hewitt EnnisKnupp views its mission as improving its clients financial results by being the premier provider of research-driven advice and innovative solutions. The firm focuses on policy orientation which is based upon robust, independent research attempting to focus attention on the issues believed to have the largest impact on future performance. The firm believes asset allocation is the most important decision for long-term investment results. Hewitt EnnisKnupp recommends a formal asset liability study once every three to five years or when major changes to the financial system occur.

9 Exhibit B NEPC, LLC Organization NEPC, LLC is an investment consulting firm based in Cambridge, Massachusetts. Richard Charlton founded the firm in January 1986 and currently serves as Chairman of the Board. Michael Manning serves as Managing Partner. NEPC is registered as investment adviser under the federal Investment Advisers Act of In addition to the Cambridge office, NEPC maintains offices in Atlanta, Charlotte, Detroit, Las Vegas, San Francisco, and Chicago. NEPC is 100% employee-owned. Ownership is shared among 33 senior employees with no single partner having a majority ownership position. NEPC plans to continue the distribution of the firm s equity and to include additional employees in the ownership on an ongoing basis. NEPC is an independent consulting firm whose sole line of business is investment consulting; therefore, 100% of the firm s revenues are derived from investment consulting services. NEPC does not provide investment management or brokerage services to clients, nor does the firm accept investment managers as clients. NEPC has six consulting practice teams focused on different market segments (Taft-Hartley, Public Funds, Endowment/Foundation, Healthcare Organizations, Corporations, and Defined Contribution Plans). Staffing NEPC has a staff of 218 professional employees, including 55 consultants. The consultants are primarily responsible for client interaction, account servicing and product delivery. In addition, 27 consultants are involved in asset allocation and manager research. NEPC also has 99 analysts function under the areas of consultant support, research across traditional and alternative asset classes and preparation of performance measurement, manager search, and asset allocation studies. The average client to consultant ratio is 6 to 1. NEPC limits the number of accounts that a consultant may handle based on the complexity and servicing requirements of the client. The SURS service team would consist of Douglas Moseley, Partner, Kevin Leonard, Partner, and Kristin Finney-Cooke, Senior Consultant, working on the defined benefit plan, and Kevin Cress, Senior Consultant with a focus on the Self-Managed Plan. Clients/Assets NEPC serves 321 retainer clients, representing assets of $726 billion. Of the 321 clients, 61 are public fund clients, representing $408 billion. The average assets of NEPC s public fund clients are $11.7 billion. Philosophy NEPC seeks to be the Institutional Investment Consulting Firm of Choice by providing customized, research-driven solutions and innovative strategies to meet each client s needs. NEPC recommends that a formal liability-driven asset allocation study be conducted for each client every three to five years, the length of a typical planning cycle. Annually, the firm recommends an asset-based asset allocation study to review the current mix. With regard to the role of passive management, NEPC regards active and passive strategies as complementary strategies in efficient markets such as core bonds and U.S. equities. In less efficient asset classes, NEPC advocates active management

10 Exhibit C Callan Associates Hewitt EnnisKnupp NEPC 100% employee owned SURS INVESTMENT CONSULTANT SEARCH October 2013 Distinguishing Characteristics of Finalists Indirect, wholly owned subsidiary of Aon, a publicly held company 100% employee owned Organization / Business Model Perception of conflicts of interest (asset management division, investment managers as clients) Perception of conflicts of interest (provide services to certain investment managers) Independent -- do not sell services to investment managers or provide investment management services Major ownership change in acquisitions by Hewitt and then Aon Focus on traditional asset classes Historically conservative but appear to be moving more toward alternatives/higher risk strategies Greater focus on alternatives and newer investment strategies Perception of being more conservative Board governance expertise (for additional fee) Perception of being more proactive Consulting Philosophy / Strategies No "pre-approved" manager list Maintains approved manager list Maintains approved manager list Strong expertise in custodian / securities lending / transition management $55 billion in private equity client assets $35 billion in private equity client assets $23 billion in private equity client assets $62 billion in real estate client assets $20 billion in real estate client assets $6 billion in real estate client assets Staffing / Depth of Resources Deep staffing resources Deepest staffing resources Deep staffing resources Lowest client-to-consultant ratio (6 to 1) Proposed SURS Team Experienced staff assigned to SURS account Extensive SURS knowledge Experienced staff assigned to SURS account Extensive SURS knowledge Experienced staff assigned to SURS account Performance Reporting and Risk Analytics Comprehensive proprietary manager database Client access to databases and performance analytics software Potential efficiencies with current staff reporting Reliance on third party databases No client access to databases Reliance on third party databases No client access to databases Fees Average fee -- approximately $543,000 per yr Highest avg fee - range of $681,500 to 743,000 per yr Average fee -- approximately $550,000 per yr

11 Exhibit D Callan Associates Total Retainer $ 395,000 $ 406,000 $ 419,000 $ 431,000 $ 444,000 $ 2,095,000 custodian/ SecLending 80,000 additional Asset/Liability 55,000 public manager 30,000 30,000 30,000 30,000 30,000 private manager 40,000 40,000 40,000 40,000 40,000 TOTAL DB $ 465,000 $ 476,000 $ 569,000 $ 556,000 $ 514,000 $ 2,580,000 SMP Investment Options fees SMP Investment Option (Public Markets) 30,000 SMP Investment Provider search 85,000 plus travel required billed at cost SMP Communication Review 20, ,000 GRAND TOTAL $ 2,715,000 Hewitt EnnisKnupp Total Retainer $ 465,000 $ 480,000 $ 498,000 $ 515,000 $ 532,000 $ 2,490,000 custodian/ SecLending 50,000 additional Asset/Liability 60,000 public manager (Range: $25-60k) 40,000 40,000 40,000 40,000 40,000 private manager (Range: $50-75k) 60,000 60,000 60,000 60,000 60,000 MDP manager level Due Diligence 65,000 65,000 65,000 65,000 65,000 TOTAL DB $ 630,000 $ 645,000 $ 713,000 $ 740,000 $ 697,000 $ 3,425,000 If Minimum search fee $ 3,300,000 SMP Investment Options fees If Maximum search fee $ 3,600,000 SMP Investment Option (Public Markets) 25,000 SMP Investment Provider search 75,000 Communications Review (range $7.5-15k) 10, ,000 GRAND TOTAL $ 3,535,000 Extras (not included in total pricing) estimated at mid point Fiduciary Training 14,000 Minimium 3,407,500 Strategic Planning 30,000 Maximum 3,715,000 Governance Consulting 40,000 Trustee Orientation 37,500 NEPC Total Retainer $ 445,000 $ 445,000 $ 445,000 $ 460,000 $ 460,000 $ 2,255,000 custodian/ SecLending 20,000 additional Asset/Liability 55,000 public manager 25,000 25,000 25,000 25,000 25,000 private manager 30,000 30,000 30,000 30,000 30,000 Private Equity pacing models 15,000 15,000 15,000 TOTAL DB $ 515,000 $ 500,000 $ 535,000 $ 570,000 $ 530,000 $ 2,650,000 SMP Investment Provider search 75,000 or $15,000 per year for 5 years SMP Investment Option (Public Markets) 25,000 SMP fees 100,000 GRAND TOTAL $ 2,750,000

12 Exhibit E SURS INVESTMENT CONSULTANT SEARCH CANDIDATE RATING SHEET October 2013 Callan Associates Hewitt EnnisKnupp NEPC Organization / Business Model Consulting Philosophy / Strategies Ratings (1-5 Scale) Staffing / Depth of Resources - including Defined Contribution Proposed SURS Team Performance Reporting and Risk Analytics Diversity Fees Total Rank Scale of 1 to 5 (1 = lowest, 5 = highest) Definitions: Organization - Consulting Philosophy / Strategies - Staffing / Depth of Resources - Proposed SURS Team - Performance Reporting and Risk Analytics - Stability, ownership, independence Investment philosophy, expertise in wide variety of investment strategies Depth and expertise of consulting staff, research capabilities Qualification and experience of individuals on SURS team Investment manager data collection and monitoring systems, risk management tools, performance measurement systems