PREFERRED BROKER AGREEMENT EXTENSIONJohn M. Carr
Senior Vice President
M
SAN FRANCISCO
NEW YORK
CHICAGO
ATLANTA
DENVER
April 24, 2008
Steve Moskun
City of Clearwater Pension Fund
Finance Department
Municipal Services Building
3rd Floor, East End
100 South Myrtle Avenue
Clearwater, FL 33756-5520
Dear Steve:
Callan Associates agrees to extend the terms of the current contract (copy attached)
from March 1, 2008 to June 1, 2009. Please note that, per Section 7 of the
contract, as our agreement with BNY terminated in January 2007, we no longer
refer to them as our "preferred broker".
Enclosed is a current copy of Callan's ADV Part II and a List of Managers We Do
Business With.
Thank you for the opportunity to continue to serve the City of Clearwater.
Sincerely,
John M. Carr
Cc: Paul V. Troup
Enclosures
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By the signatures affixed below, the above Agreement is hereby accepted as to all the
terms and conditions.
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6.41a-n Associates Inc.
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Date
Countersigned:
BOARD OF TRUSTEES OF THE EMPLOYEES'
PENSION PLAN OF THE CITY OF
CLEARWATER, FLORIDA
By; - !?
rank V. Hibbard
Chairperson
Cynthia E. Goudeau
ity Clerk
FORM ADV
Part II - Page 1
Uniform Application for Investment Adviser Registration
OMB APPROVAL
OMB Number: 3235-0049
Expires: July 31, 2008
Estimated average burden hours per
response ... 9.402
Name of Investment Adviser:
Callan Associates Inc.
Address: (Number and Street) (City) (State) (Zip Code) Area Code Telephone Number
101 California Street, Suite 3500 San Francisco CA 94111 415 974-5060
This part of Form ADV gives information about the investment adviser and its business for the use of clients.
The information has not been approved or verified by any governmental authority.
Table of Contents
Item Item Page
Number
1 Advisory Services and Fees ............................................ 2
2 Types of Clients ....................................................... 2
3 Types of Investments .................................................. 3
4 Methods of Analysis, Sources of Information and Investment Strategies...... 3
5 Education and Business Standards ....................................... 4
6 Education and Business Background ..................................... 4
7 Other Business Activities ............................................... 4
8 Other Financial Industry Activities or Affiliations ........................... 4
9 Participation or Interest in Client Transactions .............................. 5
10 Conditions for Managing Accounts ....................................... 5
11 Review of Accounts .................................................... 5
12 Investment or Brokerage Discretion ........................................ 6
13 Additional Compensation ................................................ 6
14 Balance Sheet ....................................................... ... 6
Continuation Sheet ............................................. ........ Schedule F
Balance Sheet, if required ....................................... ......... Schedule G
(Schedules A, B, C, D, and E are included with Part I of this Form, for the use of regulatory bodies, and are not distributed to clients.)
Potential Persons who are not to respond to the collection of information contained to this form are not
required to respond unless the form displays a currently valid OMB control number.
Form ADV Applicant:
Part II - Page 2 Callan Associates Inc.
SEC File Number: Date:
801- 9219 3/31/2008
1. A. Advisory Services and Fees. (check the applicable boxes) For each type of service provided, state the
approximate % of total advisory billings
from that service. (See instruction below.)
Applicant:
F (1) Provides investment supervisory services 2 %
F (2) Manages investment advisory accounts not involving investment supervisory services %
F (3) Furnishes investment advice through consultations not included in either service described above 39
F-(4) Issues periodicals about securities by subscription %
F (5) Issues special reports about securities not included in any service described above 45 %
r (6) Issues, not as part of any service described above, any charts, graphs, formulas, or other devices which client may
use to evaluate securities %
F- (7) On more than an occasional basis, furnishes advice to clients on matters not involving securities %
I (8) Provides a timing service %
F (9) Furnishes advice about securities in any manner not described above 14 %
(Percentages should be based on applicant's last fiscal year. If applicant has not completed its first fiscal year,
provide estimates of advisory billings for that year and state that the percentages are estimates.)
B. Does applicant call any of the services it checked above financial planning or some similar term?
Yes No
r r
C. Applicant offers investment advisory services for: (check all that apply)
F (l) A percentage of assets under management f- (4) Subscription fees
F(2) Hourly charges r (5) Commissions
F(3) Fixed fees (not including subscription fees) F(6) Other
D. For each checked box in A above, describe on Schedule F:
the services provided, including the name of any publication or
report issued by the adviser on a subscription basis or for a fee
applicant's basic fee schedule, how fees are charged and whether its
fees are negotiable
when compensation is payable, and if compensation is payable
before service is provided, how a client may get a refund or may
terminate an investment advisory contract before its expiration date
2. Types of Clients -- Applicant generally provides investment advice to: (check those that apply)
F A. Individuals F E. Trusts, estates, or charitable organizations
F B. Banks or thrift institutions r F. Corporations or business entities other than those listed above
r C. Investment companies F G. Other (describe on Schedule F)
F D. Pension and profit sharing plans
Answer all items. Complete amended pages in full, circle amended items and file with execution page (page 1).
Form ADV Applicant:
Part II - Page 3 Callan Associates Inc.
SEC File Number: Date:
801- 9219 3/31/2008
3. Types of Investments Applicant offers advice on the following: (check those that apply)
A. Equity securities r H. United States governmental securities
r (1) exchange-listed securities
r (2) securities traded over-the-counter
r (3) foreign issuers
r B. Warrants
r C. Corporate debt securities
(other than commercial paper)
r D. Commercial paper
r E. Certificates of deposit
r F. Municipal securities
1. Options contracts on:
F- (1) securities
r (2) commodities
J. Futures contracts on:
r (1) tangibles
r (2) intangibles
K. Interests in partnerships investing in:
F (1) real estate
G. Investment company securities: r (2) oil and gas interests
(1) variable life insurance F (3) other (explain on Schedule F)
rl
r (2) variable annuities
F (3) mutual fund shares F L. Other (explain on Schedule F)
4. Methods of Analysis, Sources of Information, and Investment Strategies.
A. Applicant's security analysis methods include: (check those that apply)
(1) r Charting (4) r Cyclical
(2) r Fundamental (5) r Other (explain on Schedule F)
(3) r Technical
B. The main sources of information applicant uses include: (check th
(1) F- Financial newspapers and magazines (5)
(2) r Inspections of corporate activities (6)
(3) r Research materials prepared by others (7)
(4) r Corporate rating services (8)
ose that apply)
r Timing services
F Annual reports, prospectuses, filings with the Securities
and Exchange Commission
r Company press releases
r Other (explain on Schedule F)
C. The investment strategies used to implement any investment advice given to clients include: (check those that apply)
(1) r Long term purchases (securities held at least a year) (5) r Margin transactions
(2) r Short term purchases (securities sold within a year) (6) r Option writing, including covered options, uncovered
options, or spreading strategies
(3) r Trading (securities sold within 30 days) (7) F Other (explain on Schedule F)
(4) r Short sales
Answer all items. Complete amended pages in full, circle amended items and file with execution page (page 1). 1
Form ADV Applicant: SEC File Number: Date:
Part II -Page 4 Callan Associates Inc. 801- 9219 3/31/2008
5. Education and Business Standards. Yes No
Are there any general standards of education or business experience that applicant requires of those involved in determining
or giving investment advice to clients? ............................................................................................................ F' F
(If yes, describe these standards on Schedule F.)
6. Education and Business Background.
For:
• each member of the investment committee or group that determines general investment advice to be given to clients, or
• if the applicant has no investment committee or group, each individual who determines general investment advice given to clients
(if more than five, respond only for their supervisors)
• each principal executive officer of applicant or each person with similar status or performing similar functions.
On Schedule F, give the:
• name formal education after high school
• year of birth business background for the preceding five years
7. Other Business Activities. (check those that apply)
FA. Applicant is actively engaged in a business other than giving investment advice.
F13. Applicant sells products or services other than investment advice to clients.
F- C. The principal business of applicant or its principal executive officers involves something other than providing investment
advice.
(For each checked box describe the other activities, including the time spent on them, on Schedule F.)
8. Other Financial Industry Activities or Affiliations. (check those that apply)
A. Applicant is registered (or has an application pending) as a securities broker-dealer.
B. Applicant is registered (or has an application pending) as a futures commission merchant, commodity pool operator or
commodity trading adviser.
C. Applicant has arrangements that are material to its advisory business or its clients with a related person who is a:
F_ (1) broker-dealer r (7) accounting firm
r" (2) investment company r (8) law firm
r (3) other investment adviser r (9) insurance company or agency
F- (4) financial planning firm r (10) pension consultant
?- (5) commodity pool operator, commodity trading r (11) real estate broker or dealer
adviser or futures commission merchant
r (6) banking or thrift institution r (12) entity that creates or packages limited partnerships
(For each checked box in C, on Schedule F identify the related person and describe the relationship and the
arrangements.) Yes No
D. Is applicant or a related person a general partner in any partnership in which clients are solicited to invest?... F r
(If yes, describe on Schedule F the partnerships and what they invest in.)
Answer all items. Complete amended pages in full, circle amended items and file with execution page (page 1). 777?
Form ASV Applicant:
Part II - Page 5 Callan Associates Inc.
SEC File Number: Date:
801- 9219 3/31/2008
9. Participation of Interest in Client Transactions.
Applicant or a related person: (check those that apply)
F- A. As principal, buys securities for itself from or sells securities it owns to any client.
F- B. As broker or agent effects securities transactions for compensation for any client.
C. As broker or agent for any person other than a client effects transactions in which client securities are sold to
or bought from a brokerage customer.
F D. Recommends to clients that they buy or sell securities or investment products in which the applicant or a
related person has some financial interest.
F E. Buys or sells for itself securities that it also recommends to clients.
(For each box checked, describe on Schedule F when the applicant or a related person engages in these transactions
and what restrictions, internal procedures, or disclosures are used for conflicts of interest in those transactions.)
Describe, on Schedule F, your code of ethics, and state that you will provide a copy of your code of ethics to any
client or prospective client upon request.
10. Conditions for Managing Accounts. Does the applicant provide investment supervisory services, manage yes No
investment advisory accounts or hold itself out as providing financial planning or some similarly termed
services and impose a minimum dollar value of assets or other conditions for starting or maintaining an
F
account?
(If yes, describe on Schedule F.)
11. Review of Accounts. If applicant provides investment supervisory services, manages investment advisory accounts, or
holds itself out as providing financial planning or some similarly termed services:
A. Describe below the reviews and reviewers of the accounts. For reviews, include their frequency, different levels, and
triggers factors. For reviewers, include the number of reviewers, their titles and functions, instructions they receive
from applicant on performing reviews, and number of accounts assigned each.
See Schedule F
B. Describe below the nature and frequency of regular reports to clients on their accounts.
See Schedule F
Answer all items. Complete amended pages in full, circle amended items and file with execution page (page 1).
Form ADV Applicant:
Part II Page 6 Callan Associates Inc.
SEC File Number: Date:
801- 9219 7/31/2006
12. Investment or Brokerage Discretion.
A. Does applicant or any related person have authority to determine, without obtaining specific client consent, the:
Yes No
(1) securities to be bought or sold? ...................................................................................................................... F r
Yes No
(2) amount of the securities to be bought or sold? ...............................................................................................
F
Yes No
(3) broker or dealer to be used? ............................................................................................................................
F
Yes No
(4) commission rates paid? ...................................................................................................................................
Yes No
B. Does applicant or a related person suggest brokers to clients? .............................................................................. F F
For each yes answer to A describe on Schedule F any limitations on the authority. For each yes to A(3), A(4) or B, describ e on
Schedule F the factors considered in selecting brokers and determining the reasonableness of their commissions. If the value of
products, research and services given to the applicant or a related person is a factor, describe:
• the products, research and services
• whether clients may pay commission higher than those obtainable from other brokers in return for those products and
services
• whether research is used to service all of applicant's accounts or just those accounts paying for it; and
• any procedures the applicant used during the last fiscal year to direct client transactions to a particular broker in return for
products and research services received.
13. Additional Compensation.
Does the applicant or a related person have any arrangements, oral or in writing, where it:
A. is paid cash by or receives some economic benefit (including commissions, equipment or non-research services) Yes No
from a non-client in connection with giving advice to clients? ............................................................................... F F
Yes No
B. directly or indirectly compensates any person for client referrals? ......................................................................... F F
(For each yes, describe the arrangements on Schedule F.)
14. Balance Sheet. Applicant must provide a balance sheet for the most recent fiscal year on Schedule G if applicant:
• has custody of client funds or securities (unless applicant is registered or registering only with
the Securities and Exchange Commission); or
• requires prepayment of more than $500 in fees per client and 6 or more months in advance Yes No
Has applicant provided a Schedule G balance sheet? ............................................................................................ F F
Answer all items. Complete amended pages in full, circle amended items and file with execution page (page 1).
Schedule F of Applicant: gnu rue Numoer: GLe.
Form ADV
Continuation Sheet for Form ADV Callan Associates Inc. 801- 9219 3/31/2008
Part II
(Do not use this Schedule as a continuation sheet for corm Aliv ran i or any oiner scneuuies.)
1. Full name of applicant exactly as stated in Item 1A of Form ADV:
Callan Associates Inc. RS Empl. Ident. No.:
94-2192581
Item of Form Answer
(identify)
1 D Following are the principal services with their associated fees which Callan
Associates Inc. (Callan) renders to its clients, which predominantly include fund
sponsor organizations, mutual fund boards of directors, investment management
firms, investment consulting firms and financial intermediaries.
1. Products and services for fund sponsor organizations are offered through the
Fund Sponsor Consulting Group:
Products and services for fund sponsor organizations, which predominantly
include defined benefit plans, defined contribution plans, endowments,
foundations, hospitals, trusts and Taft-Hartley plans are offered through the Fund
Sponsor Consulting Group. Callan also offers certain of these services, including
performance reporting, consulting, research and educational services, to mutual
fund boards of directors through the Mutual Fund Board of Directors Group:
(1) Performance Reporting Services:
(a) Investment Measurement Service - this reporting service provides summary
performance measurement data on an investment portfolio and may include an
analysis of financial and investment data relating to the holdings in a public
security portfolio.
(b) Performance Attribution Service - this service analyzes portfolio and/or fund
performance, broken down into its various sub-component sources of risk and
return.
(c) Trading Cost Analysis - this reporting service provides an analysis of the
execution cost of each broker in an investment portfolio.
(d) Performance Evaluation Program (PEP) - this service provides a flexible PC-
based tool to produce performance analysis reports in color.
(2) Consulting Services:
(a) Investment Policy Service - this service provides assistance to fund sponsors
in formulating and articulating in a formal document the investment policies and
procedures of the retirement program, endowment or foundation.
(b) Asset Allocation/Liability Service - this service provides information concerning
the effect of asset mix on projected assets and cash flows.
Complete amended pages in full, circle amended items and file with execution page (page 1). PAGE 1
Cc) Coovriaht 2008. National Reaulatorv Services. All Riahts Reserved.
Schedule F of Applicant: btu rue ivumner: ate:
Form ADV
Continuation Sheet for Form ADV Callan Associates Inc. 801 9219 3/31/2008
Part II
(Do not use this Schedule as a continuation sheet for Form ADV Part I or any other schedules.)
1. Full name of applicant exactly as stated in Item IA of Form ADV:
Callan Associates Inc. RS Empl. Ident. No.:
94-2192581
Item of Form Answer
(identify)
1 D (c) Manager/Investment Structure Service - this service provides information
concerning the structure of an asset class within a retirement program,
endowment or foundation, taking into consideration the fund's goals and
objectives, market and fund sponsor environments, among other factors.
(d) Manager/Record Keeper Search Service - this service provides fund sponsors
with information concerning the styles and relative attributes of various investment
managers or record keepers.
(e) Fee Analysis - this service-offered to defined contribution plans-analyzes
fees paid by service providers.
(f) Private Markets Service - this service assists in the development,
implementation and evaluation of institutional real estate, hedge fund and other
alternative investment programs.
(g) Custody/Securities Lending/Transition Management/Commission Recapture
Service - this service provides fund sponsors with information concerning the
relative attributes of various custody, securities lending, transition management or
commission recapture service providers.
(3) Callan Investments Institute:
The Callan Investments Institute functions as an educational institution servicing
organizations (including fund sponsors, investment managers, investment
consultants and financial intermediaries) by independently analyzing problems
and opportunities in the industry via research communications and conference
programs. In addition to conference and workshop participation, client
organizations receive research papers, Callan Insights (an electronic news
service that reports developments within the institutional investment arena),
surveys and quarterly performance data produced during the course of a year.
Client organizations also receive periodicals including the Capital Markets
Newsletter, Defined Contribution Opinions and Observations newsletter, Private
Market Trends, Hedge Fund Monitor, and conference summaries, and have
access to the Institute's library, which features past conference materials and
articles via tape and printed media.
Complete amended pages in full, circle amended items and file with execution page (page 1). PAGE 2
Cc) Coovriaht 2008. National Reaulatorv Services. Ali Riahts Reserved.
Schedule F of Applicant: ..V, 11u..W...
Form ADV
Continuation Sheet for Form ADV Callan Associates Inc. 801 9219 3/31/2008
Part II
(Do not use this Schedule as a continuation sheet for Form ADV Part I or any other schedules.)
1. Full name of applicant exactly as stated in Item 1A of Form ADV:
Callan Associates Inc. RS Empl. Ident. No.:
94-2192581
Item of Form Answer
(identify)
1 D (4) Center for Investment Training:
The Center for Investment Training, also known colloquially as "Callan College", is
an approximately two-and-one-half-day program offered several times each year
and via private label. "Callan College" is designed to provide investment
fiduciaries, their advisers and investment consultants with basic-to-intermediate-
level of instruction on prudent investment practices. The subjects discussed
include fiduciary standards and responsibilities, capital market theory, asset
allocation and the writing of investment policy statements, investment manager
structure and search, and performance measurement and evaluation. Additional
one-to two-day "Callan College" programs on such subjects as real estate,
private markets and mutual fund board responsibilities are also periodically
offered to fund sponsors, investment managers, investment consultants and/or
financial intermediaries.
Fees for Fund Sponsor Organizations and Mutual Fund Boards of Directors:
The fees for the Performance Reporting Services varies depending upon a
portfolio's size, the complexity of the report/service, and/or the frequency of the
report/service. A normal fee range is between $2,700 and $4,700 per portfolio per
year plus an annual base performance measurement consulting fee starting at
$28,000. The fee for the above Consulting Services varies depending upon the
type and complexity of the assignment with a normal fee range being between
$15,000 and $650,000 per project service or suite of services (retainer) per year.
All fund sponsor retainer clients subscribing to any services of Callan are provided
Callan Investments Institute services as part of the fees they pay Callan for so
long as they remain clients. The fund sponsor "Callan College" registration fees,
per session, range between $2,350 and $2,500 per person.
II. Products and services for investment management firms are offered through the
Institutional Consulting Group (ICG):
(1) Strategic Consulting - this service provides consulting guidance during the
critical planning and development stages of a firm's growth, transition and
succession planning.
(2) Communications Consulting - this service provides assistance in developing
effective communication materials to ensure the consistency and clarity of
investment manager clients' marketing messages.
Complete amended pages in full, circle amended items and file with execution page (page 1). PAGE 3
(ECoovriaht 2008. National Reaulatorv Services. All Riahts Reserved.
Schedule F of
Form ADV
Continuation Sheet for Form ADV
Part H
ant:
Callan Associates Inc.
1- 9219 13/31/2008
(Do not use this Schedule as a continuation sheet for Form ADV Part I or any other schedules.)
1. Full name of applicant exactly as stated in Item IA of Form ADV:
Callan Associates Inc. RS Empl. Ident. No.:
94-2192581
Item of Form Answer
(identify)
1 D (3) Product Consulting - this service provides an examination of investment
products' market and demand influences, as well as competitive features, and
advises on how to position products to align them with buyers' needs.
(4) Performance Evaluation Program (PEP) - this service provides a flexible PC-
based tool to produce performance analysis reports in color.
(5) Investment Product Analysis - this service is a quarterly report which provides
a comprehensive and comparative review of a product incorporating analysis of
performance, portfolio characteristics, product assets, fees and product
resources.
(6) Style, Trend, Analysis, and Research Report (STAR) - this service provides an
annual report and mid-year update which quantifies the institutional pool of assets
and flows within a style, examines asset concentration and the largest players
and identifies top asset gatherers by product size.
(7) Callan Investments Institute - Refer to the Callan Investments Institute
description under Fund Sponsor Products and Services.
(8) Center for Investment Training - Refer to the Center for Investment Training
description under Fund Sponsor Products and Services.
Fees for Investment Management Organizations:
The fees for the above consulting services varies depending upon the type and
complexity of the assignment, with a normal fee range being between $5,000 and
$325,000 per project service or suite of services (retainer) per year. Callan
Investments Institute fees for investment manager clients, at the election of the
manager, range from $25,000 to $56,000 per organization per year (not per
individual) dependent upon the complexity of the services selected by the client
organization. The investment manager "Callan College" registration fees, per
session, range between $2,350 and $3,000 per person.
Callan is committed to ensuring that it does not consider an investment
manager's business relationship with Callan, or lack thereof, in performing
evaluations for or making suggestions or recommendations to its other
clients. Callan informs its investment manager clients of such policy at the start
of the relationship and informs all clients of such on a routine basis. In addition to
disclosing the existence of its business relationships with investment managers
on request, Callan also discloses these manager relationships in annual
mailings, as part of each manager search, and in the quarterly performance
Complete amended pages in full, circle amended items and file with execution page (page 1). PAGE 4
n Coovriaht 2008. National Reaulatorv Services. All Riahts Reserved.
Schedule F of Applicant: Jrt riic IWILIVCi. ."-
Form ADV
Continuation Sheet for Form ADV Callan Associates Inc. 801 9219 3/31/2008
Part II
(Do not use this Schedule as a continuation sheet for Form ADV Part 1 or any other schedules.
1. Full name of applicant exactly as stated in Item IA of Form ADV:
Callan Associates Inc. RS Empl. Ident. No.:
94-2192581
Item of Form Answer
(identify)
1 D evaluation reports provided to fund sponsors.
III. Products and services for investment consulting firms and financial
intermediaries are offered through the Independent Adviser Group (IAG):
(1) Bundled Consulting Services:
(a) Capital Markets Research and Asset Optimization Program - this service
provides insights on Callan's capital market assumptions and allows the IAG
clients to run customized optimizations based upon their clients' requirements.
Asset Optimization software is also provided.
(b) Consulting Templates - this service provides templates for a range of
investment policy statements, data-gathering checklists, and storyboards to
assist the IAG client in clearly documenting their clients' investment management
processes.
(c) Middle Market Matrix (MAX) - this service provides a set of reports/information
on a collection of separate account managers and mutual funds that have passed
our rigorous due diligence process that provides the IAG client access to
institutional quality investment managers and custodians that were previously
unavailable due to high minimums and fees.
(d) Performance Reporting and Research - this service, provided through an
internet site we call the "OpCenter", allows the consulting firm client access to
most of our service offerings to this type of client. For example, the client can
access detailed profiles of MAX managers or funds, select from an extensive list
of mutual funds to create their own mutual fund performance report, access their
client performance reports or browse through our document archives for a
collection of research support and templates.
(2) Customized Consulting Services:
Refer to the Products and Services descriptions for Fund Sponsor Organizations
as each of these services is available to IAG clients on a customized basis.
(3) Callan Investments Institute:
Refer to the Callan Investments Institute description under Fund Sponsor
Products and Services.
Complete amended pages in full, circle amended items and file with execution page (page 1). PAGE 5
Cc? Coovriaht 2008. National Reoulatorv Services. All Riahts Reserved.
Schedule F of
Form ADV
Continuation Sheet for Form ADV
Part II
Callan Associates Inc.
01- 9219 13/31/2008
(Do not use this Schedule as a continuation sheet for rorm AV V ran i or any oiner scneauies.)
1. Full name of applicant exactly as stated in Item IA of Form ADV:
Callan Associates Inc. RS Empl. Ident. No.:
94-2192581
Item of Form Answer
(identify)
1 D (4)Center for Investment Training:
Refer to the Center for Investment Training description under Fund Sponsor
Products and Services.
(5) Callan Unified Managed Account (UMA) - Callan has developed an open-
architecture platform of investment strategies that have passed our rigorous due
diligence process. This platform includes access to separate account managers
who have been screened by Callan and whose trading activities are coordinated
by an external overlay manager whom Callan has selected. IAG clients can
coordinate the opening of single-custodial UMA accounts for their end clients and
can create customized individual manager allocations on a per-account basis. In
the alternative, IAG clients can utilize asset class model portfolios developed by
the IAG team and subject to Callan's peer review process. Although Callan does
not exercise discretion over the accounts managed through the UMA program,
Callan does have the authority to replace the external overlay manager and to
replace separate account managers from the platform.
Callan charges IAG clients an annual base fee for the bundled consulting services
and access to the UMA platform described above. The amount of the base fee
varies depending on the size and nature of the IAG client and the complexity of
the client relationship. The fees paid by most IAG clients currently range from
$15,000 to $150,000; a few clients pay more or less than this range, based on
their individual circumstances. IAG clients who purchase a certain minimum level
of Callan services are also provided access to the Callan Investments Institute. In
addition to the annual base fee, Callan charges the following fees for its IAG
services:
(a) Project-based fees and/or suite of services (retainer) are charged for Callan's
customized consulting services. These fees generally start at $20,000.
(b) The IAG client "Callan College" registration fees, per session, range from
$2,350 to $2,500 per person.
(c) Callan charges an asset-based fee of 20 by to each client account opened on
the UMA platform. This fee, which compensates Callan for coordinating the UMA
program and client-specific performance measurement, is in addition to the fees
charged by the overlay manager and the separate account managers. This fee is
also separate from the fees the IAG investment consulting firms and financial
intermediaries may charge to the end clients. The fees Callan charges in
connection with the UMA program also do not include portfolio execution or
Complete amended pages in full, circle amended items and file with execution page (page 1). PAGE 6
nc Coovriaht 2008. National Reaulatorv Services. All Riahts Reserved.
Schedule F of Applicant: z5t u rue Numoer: ate:
Form ADV
Continuation Sheet for Form ADV Callan Associates Inc. 801- 9219 3/31/2008
Part It
(Do not use this Schedule as a continuation sheet for corm Ai)V ran i or any oiner scneouies.)
1. Full name of applicant exactly as stated in Item 1 A of Form ADV:
Callan Associates Inc. RS Empl. Ident. No.:
94-2192581
Item of Form Answer
(identify)
1 D custody charges, which are separately assessed against the client accounts.
Callan provides consulting and educational services to, and receives
compensation for those services from, investment managers who may be
evaluated by Callan or recommended by Callan to its other clients. Callan
recognizes that there is a potential conflict between Callan's interest in receiving
compensation from investment managers and Callan's obligation to provide
objective advice to clients who use those managers. Callan has adopted certain
policies and practices designed to prevent such conflicts, including the policies
set forth in its Code of Ethical Responsibility (described in Item 9), disclosure
policies, roles of its oversight committees, separation of the areas of business,
including separate personnel, revenue streams, and compensation arrangements.
Among other policies, Callan is committed to ensure that it does not consider an
investment manager's business relationships with Callan, or lack thereof, in
performing evaluations for or making suggestions or recommendations to its other
clients. Callan informs its investment manager clients of such policy at the start
of the relationship and informs all clients of such on a routine basis. In addition to
disclosing the existence of its business relationships with investment managers
on request, Callan also discloses these manager relationships in annual
mailings, as part of each manager search, and in the quarterly performance
evaluation reports provided to fund sponsors. Fund sponsor clients may also
request specific information regarding the fees paid to Callan by the managers
employed by their fund. Per company policy, information requests regarding fees
are handled by Callan's Compliance Department.
All Callan fees are negotiable and are paid in cash. A client may cancel an
agreement for services with Callan at any time upon notice to Callan. If Callan is
in the process of performing services for a client which the client does not want to
have completed, then Callan will bill the client for the services performed to the
date of cancellation.
IV. Products and services for institutional investors are offered through the Trust
Advisory Group (TAG):
TAG, Callan's asset management division, specializes in the design,
implementation, and on-going management of multi-manager portfolios. TAG
focuses its efforts in two different areas:
(1) Diversified Alpha Group Trust - Callan, through TAG, is the adviser and
sponsor of a diversified, commingled, small cap equity fund (Private Trust). This
Private Trust is a private offering designed for qualified corporate pension plans
and profit sharing plans, and government pension plans. In particular, the Private
Trust is designed for large plans generally with a minimum investment of $200
Complete amended pages in full, circle amended items and file with execution page (page 1). PAGE 7
Cc) Coovrioht 2008. National Reaulatorv Services. All Riahts Reserved.
Schedule F of
Form ADV
Continuation Sheet for Form ADV
Part H
Callan Associates Inc.
01- 9219 13/31/2008
(Do not use this Schedule as a continuation sheet for Form ADV Part I or any other schedules.)
1. Full name of applicant exactly as stated in Item IA of Form ADV:
Callan Associates Inc. RS Empl. Ident. No.:
94-2192581
Item of Form Answer
(identify)
1 D million.
TAG is responsible for the overall management of the Private Trust. TAG does
not offer advice on, nor have discretion over the securities held in the Private
Trust. TAG engages, monitors, and as necessary, replaces the 25-50 sub-
advisers who are responsible for investing and reinvesting the assets of the
Private Trust in accordance with the investment guidelines established for each
sub-adviser by TAG.
TAG, and each sub-adviser, receive a quarterly fee in arrears from the assets of
the Private Trust in accordance with the organizational documents for the Private
Trust. Interests in the Private Trust are offered only by means of a private
placement memorandum which describes the Private Trust's fees and expenses,
the terms and conditions for subscriptions and redemptions, the investment
objectives and policies, and other information. The private placement
memorandum is made available only to qualified investors.
(2) Target Maturity Collective Funds - Callan, through TAG, acts as the non-
discretionary adviser to a series of target maturity collective funds (Collective
Funds) sponsored by a large Delaware state-chartered trust company (Trust
Company). These Collective Funds are broadly diversified by asset class and
investment style. They have an asset allocation that becomes increasingly
conservative over time. The Collective Funds achieve their diversification by
investing in other collective funds and/or mutual funds managed by a diverse
group of investment advisers. The Collective Funds are designed as a single-fund
investment solution for participants of defined contribution plans.
TAG is responsible for the design of the asset allocation (or glidepath) for the
Collective Funds. TAG is also responsible for providing due diligence and advice
to the Trust Company on the underlying collective funds and/or mutual funds in
which the Collective Funds are invested. TAG is further responsible for monitoring
the asset allocation of the Collective Funds, as well as the performance of the
underlying funds over time, and for providing the Trust Company with periodic
rebalancing advice. The Trust Company has final discretionary authority over the
Collective Funds.
Callan receives asset-based fees from the assets of the Collective Funds which
are accrued daily and paid quarterly in arrears. The fees range between 0.10%
and 0.15% of total assets in the Collective Funds.
Complete amended pages in full, circle amended items and file with execution page (page 1). PAGE 8
(c? Coovriaht 2008. National Reaulatorv Services. All Riahts Reserved.
Schedule F of Applicant: Stu rue Numoer: are:
Form ADV
Continuation Sheet for Form ADV Callan Associates Inc. 801- 9219 3/31/2008
Part II
(Do not use this Schedule as a continuation sheet for Form ADV Part I or any other schedules.)
1. Full name of applicant exactly as stated in Item IA of Form ADV:
Callan Associates Inc. RS Empl. Ident. No.:
94-2192581
Item of Form Answer
(identify)
1 D Callan does not and will not provide consulting advice to a Fund Sponsor
Consulting client with respect to an investment of plan assets in either the Private
Trust or the Collective Funds. The reason for this restriction is the fact that Callan
receives compensation from the assets of the Private Trust and the Collective
Funds. Under the Employee Retirement Income Security Act of 1974, as
amended, it is not permissible for Callan, as an investment consultant, to provide
consulting advice to a plan regarding an investment in the Private Trust or
Collective Funds while, at the same time, receiving compensation from the
Private Trust or Collective Funds.
Furthermore, Callan's Fund Sponsor Consulting clients cannot invest their plan
assets in the Private Trust or the Collective Funds unless they amend their
consulting contract with Callan to acknowledge the potential conflict of interest
created by the fact that Callan receives compensation from the assets of the
Private Trust or the Collective Funds. The consulting contract amendment
formally precludes Callan from providing any consulting advice with respect to
plan assets invested in the Private Trust or Collective Funds, either before, during,
or after the investment is made.
2G The clients of Callan are fund sponsors, mutual fund boards of directors,
investment managers, investment consulting firms, financial intermediaries,
and individuals. The clients are typically responsible for investment funds that are
large tax-exempt funds such as pension, profit sharing, thrift, trust, endowment
and foundation funds. The sponsors are private corporations, public governments,
multi-employer groups, and non-profit organizations. The managers and financial
intermediaries are banks, insurance companies and independent investment
management firms.
3 Callan does offer advice to its clients, including manager search services and/or
performance reporting services, on mutual funds and collective investment funds,
hedge fund partnerships, real estate partnerships, and private equity
partnerships. In addition, Callan does offer periodic research papers, surveys and
quarterly capital markets data that may analyze or comment on trends with
respect to specific investment strategies. With the exception of the Collective
Funds which may offer advice on mutual funds, Callan does not offer advice,
including research, with respect to specific securities of individual issuers such
as stocks and bonds and, therefore, we do not check the boxes in Item 3 A-F
and H-J.
3L Manager of a Private Trust and a series of Collective Funds. See Schedule F,
Item 1 D IV for more detail.
Complete amended pages in full, circle amended items and file with execution page (page 1). PAGE 9
(CCoovriaht 2008. National Reaulatorv Services. All Riahts Reserved.
Schedule F of
Form ADV
Continuation Sheet for Form ADV
Part II
not use
Callan Associates Inc.
as a
Part I or any
I - 9219 13/31/2008
1. Full name of applicant exactly as stated in Item 1A of Form ADV:
Callan Associates Inc. RS Empl. Ident. No.:
94-2192581
Item of Form Answer
(identify)
4 Callan does offer advice to its clients, including manager search services and/or
performance reporting services, on mutual funds and collective investment funds,
hedge fund partnerships, real estate partnerships, and private equity
partnerships. With the exception of the Collective Funds which may offer advice
on mututal funds, Callan does not offer advice with respect to specific securities
of individual issuers such as stocks and bonds and, therefore, we do not check
most of the boxes in Item 4. For methods of analysis and sources of information,
see Schedule F, Item 1D.
4138 With respect to the Private Trust for which TAG acts as adviser, all authority for
security-level decisions has been delegated to the sub-advisers for the Private
Trust. TAG has responsibility for selecting, monitoring, and as
needed, replacing those sub-advisers on behalf of the Private Trust.
With respect to the Collective Funds for which TAG acts as adviser, the
sponsoring Trust Company has final authority on all security level decisions
related to the underlying funds. The advisers for the underlying funds have
authority over all security level decisions within those funds. TAG provides due
diligence and advice to the sponsoring Trust Company with respect to the
underlying funds.
In both cases, Callan relies, as its main source of information, on proprietary
research generated by Callan's Global Manager Research Group and/or Callan's
Database group. See Schedule F, Item 1 D IV for information related to TAG, the
Private Trust, or the Collective Funds.
4C7 See Schedule F, Item 1 D IV for more details relating to the Private Trust and
Collective Funds.
Complete amended pages in full, circle amended items and file with execution page (page 1). PAGE 10
n Coovriaht 2008. National Reoulatorv Services. All Riahts Reserved.
Schedule F of
Form ADV
Continuation Sheet for Form ADV
Part II
Callan Associates Inc.
01- 9219 13/31/2008
(Do not use this Schedule as a continuation sheet for Form ADV Part I or any other schedules.)
1. Full name of applicant exactly as stated in Item IA of Form ADV:
Callan Associates Inc. RS Empl. Ident. No.:
94-2192581
Item of Form Answer
(identify)
6 Following is certain information with respect to the executive officers of Callan:
Name: Edwin C. Callan
Year of Birth: 1920
Formal Education after High School:
A.B. 1942
University of California, Berkeley, CA
Business Background for Preceding 5 Years:
Chairman Emeritus & Director of Callan
Chairman & Director of Callan
Name: Ronald D. Peyton
Year of Birth: 1946
Formal Education after High School:
B.S. 1969, M.B.A. 1970
Indiana University, Bloomington, IN
Business Background for Preceding 5 Years:
Chairman, CEO, COO & Director of Callan
President, CEO, COO & Director of Callan
Name: Gregory C. Allen
Year of Birth: 1963
Formal Education after High School:
B.A. 1985, M.S. 1987
University of California, Santa Cruz, CA
Business Background for Preceding 5 Years:
President, Director of Research & Director of Callan
President & Director of Research
Executive Vice President, Director of Research
Investment Officer, Sharpe 4 Capital Management, LLC
Complete amended pages in full, circle amended items and file with execution page (page 1). PAGE 11
CCU Coovriaht 2008. National Reaulatorv Services. All Riahts Reserved.
Schedule F of Applicant: Fitt; rue iNumoer: ate:
Form ADV
3/31/2008
Continuation Sheet for Form ADV Callan Associates Inc. 801-9219
Part H
(Do not use this Schedule as a continuation sheet for roan Alit/ ran i or any oiner scneuuies.)
1. Full name of applicant exactly as stated in Item 1A of Form ADV:
Callan Associates Inc. RS Empl. Ident. No.:
94-2192581
Item of Form Answer
(identify)
6 Name: David F. Bonnette
Year of Birth: 1945
Formal Education after High School:
B.S. 1970
San Jose State University, San Jose, CA
Business Background for Preceding 5 Years:
Executive Vice President & Director of Callan
Executive Vice President of Callan
Name: Susan L. Taylor
Year of Birth: 1955
Formal Education after High School:
B.A. 1976
University of California, Berkeley, CA
Business Background for Preceding 5 Years:
Senior Vice President, CFO & CCO of Callan
Senior Vice President & CFO of Callan
Following is certain information with respect to individuals who determine general
investment advice for the Private Trust and/or Collective Funds. See Schedule F,
Item 1 D IV relating to the Private Trust and/or Collective Funds:
Name: Kelly S. Cliff
Year of Birth: 1969
Formal Education after High School:
B.S. 1991
University of the Pacific, Stockton, CA
Business Background for Preceding 5 Years:
Senior Vice President & Chief Investment Officer
Senior Vice President and Manager of Global Manager Research
Vice President and Manager of Global Manager Research
Complete amended pages in full, circle amended items and file with execution page (page 1). PAGE 12
Cc) Coovriaht 2008. National Reaulatorv Services. All Riahts Reserved.
Schedule F of Applicant: SEC File Number: ate:
Form ADV
Continuation Sheet for Form ADV Callan Associates Inc. 801 9219 3/31/2008
Part II
(Do not use this Schedule as a continuation sheet for Form ADV Part I or any other schedules.)
1. Full name of applicant exactly as stated in Item IA of Form ADV:
Callan Associates Inc. RS Empl. Ident. No.:
94-2192581
Item of Form Answer
(identify)
6 Name: Gregory C. Allen
Year of Birth: 1963
Formal Education after High School:
B.A. 1985, M.S. 1987
University of California, Santa Cruz, CA
Business Background for Preceding 5 Years:
President, Director of Research & Director of Callan
President & Director of Research
Executive Vice President, Director of Research
Investment Officer, Sharpe 4 Capital Management, LLC
Name: Michael J. O'Leary, Jr.
Year of Birth: 1945
Formal Education after High School:
B.S. 1967
Fordham University, Bronx, NY
Business Background for Preceding 5 Years:
Executive Vice President and Manager of Denver Consulting Office
Name: Mark N. Stahl
Year of Birth: 1972
Formal Education after High School:
B.A. 1995
University of California, Davis, CA
Business Background for Preceding 5 Years:
Senior Vice President, Global Manager Research
Vice President for Global Manager Research
Complete amended pages in full, circle amended items and file with execution page (page 1). PAGE 13
nC Coovriaht 2008. National Reaulatorv Services. All Riahts Reserved.
Schedule F of
Form ADV
Continuation Sheet for Form ADV
Part H
Callan Associates Inc.
01- 9219 13/31/2008
(Do not use this Schedule as a continuation sheet for Form ADV Part I or any other schedules.)
1. Full name of applicant exactly as stated in Item IA of Form ADV:
Callan Associates Inc. 1 RS Empl. Ident. No.:
1 94-2192581
Item of Form Answer
(identify)
6 Name: Gregory F. DeForrest
Year of Birth: 1971
Formal Education after High School:
B.A. 1993
Villanova University, Villanova, PA
Business Background for Preceding 5 Years:
Senior Vice President & Manager of Global Manager Research
Vice President & Investment Consultant
Assistant Vice President & Investment Consultant
7 Callan does offer business consulting to its Institutional Consulting Group
clients. A description of such services is contained under Item 1 D, Section II.
9D & 9E Callan does not generally recommend the purchase or sale of specific securities
to its Fund Sponsor Consulting, Institutional Consulting or Independent Adviser
Group clients. However, from time to time there may be situations in which Callan
includes in the hedge fund searches it performs for Fund Sponsor and
Independent Adviser Group clients one or more hedge funds in which a related
party, Sharpe 4 Partners also invests. On rare occasions, Callan may
affirmatively recommend that a Fund Sponsor client purchase or sell such a
hedge fund. Greg Allen has a controlling interest in Sharpe 4 Partners, a hedge
fund that is managed by Sharpe 4 Capital Management, LLC ("Sharpe 4").
Sharpe 4 is not controlled by Callan.
9 In order to control possible conflicts of interest presented by the firm's business
mix, Callan has maintained a Code of Ethical Responsibility (the Code) since
1994. This Code now also complies with Rule 204A-1 under the Investment
Advisers Act of 1940, as amended. Among other things, the Code sets forth the
general standards of conduct that Callan requires of its employees, as well as
specific policies reasonably designed to protect the objectivity and integrity of the
advice Callan renders to its clients. The topics addressed in the Code include
the use and safeguarding of confidential information; the prevention of insider
trading; outside business relationships of Callan employees; gifts, business
entertainment and political and charitable contributions; and communications with
outside parties. The Code pays special attention to the fact that Callan sells
products and services to investment managers and is committed to ensurring that
these relationships do not affect the outcome or process by which any of Callan's
services are conducted, including manager searches and performance
Complete amended pages in full, circle amended items and file with execution page (page 1). PAGE 14
Cc? Coovriaht 2008. National Reaulatorv Services. All Riahts Reserved.
Schedule F of Applicant: JLX rain ivwuUci. acv.
Form ADV
Continuation Sheet for Form ADV Callan Associates Inc. 801 9219 3/31/2008
Part II
(Do not use this Schedule as a continuation sheet for Form ADV Part I or any other schedules.)
1. Full name of applicant exactly as stated in Item IA of Form ADV:
Callan Associates Inc. 1 RS Empl. Ident. No.:
1 94-2192581
Item of Form Answer
(identify)
9 evaluations. Callan has adopted policies and procedures reasonably designed to
prevent Callan's receipt of fees from investment managers from influencing the
Fund Sponsor and Independent Adviser Group services it conducts.
The Code also contains restrictions on the personal trading activities of certain of
Callan's employees and requires those employees to report their personal trades
to the firm's CCO in accordance with applicable regulatory requirements.
Callan's Code is available on its website, www.callan.com. In addition, Callan will
provide a copy of the Code to any client or prospective client upon request.
10 Callan, through TAG, acts as the adviser to the Private Trust, which generally has
a minimum investment of $200 million (subject to waiver by TAG). See Schedule
F, Item 1 D IV.
11A The monitoring and reporting procedures for the Private Trust and the Collective
Funds are the same:
Daily Reviews: Employees of TAG receive and evaluate daily reports on the
activities of the Private Trust and the Collective Funds. This group includes the
CIO, as well as the two managers of Investment Operations. The daily information
that is processed includes: net asset values, returns, returns for relevant indices,
fee accrual information, allocations between underlying funds and sub-advisers,
as well as security level information as needed.
Monthly Reviews: On a monthly basis, TAG reviews a more comprehensive set of
reports on the Private Trust and/or the Collective Funds. In addition to the
information in the daily reports, this includes: securities lending activity, trading-
cost analysis, return comparisons versus peer groups and benchmarks, and a
rebalancing report.
11B Investors in the Private Trust receive monthly reports detailing their account
balance, and return information for the Private Trust, the underlying sub-advisers,
comparative indices, and peer groups. Investors also receive a quarterly report
with detailed performance and portfolio characteristic information. At their
election, investors may also receive daily net asset value information, as well as
security level holdings information for the Private Trust and its sub-advisers.
Complete amended pages in full, circle amended items and file with execution page (page 1). PAGE 15
Cc) Coovriaht 2008. National Reaulatorv Services. All Riahts Reserved.
Schedule F of Applicant: SEC rte Number: ate:
Form ADV
Continuation Sheet for Form ADV Callan Associates Inc. 801- 9219 3/31/2008
Part II
(Do not use this Schedule as a continuation sheet for Form ADV Part t or any other scneaules.)
1. Full name of applicant exactly as stated in Item IA of Form ADV:
Callan Associates Inc. RS Empl. Ident. No.:
94-2192581
Item of Form Answer
(identify)
12A Callan does not typically exercise investment discretion with regard to its Fund
Sponsor Consulting, Institutional Consulting or Independent Adviser Group
clients. With regard to the Private Trust, the day-today investment decisions
regarding the acquisition, disposition and voting of portfolio investments are made
by the sub-advisers Callan selects to manage the Private Trust. Callan does,
however, have the authority to select one or more broker-dealers to perform
transition management services for the Private Trust in connection with the
engagement or termination of sub-advisers. In addition to selecting the transition
management broker-dealers, Callan has the authority to negotiate the
commission rates paid to those broker-dealers. In selecting the transition
management broker-dealers for the Private Trust, Callan considers the quality of
execution and cost, but does not consider supplemental research, market or
statistical information, or ancillary services provided by the broker-dealers.
Information regarding the sub-advisers' brokerage placement practices is set forth
in the Private Trust's private placement memorandum.
See Schedule F, Item 1 D IV relating to the Private Trust.
12B Callan also may assist its Fund Sponsor Consulting clients in conducting
searches for such providers as securities lending, transition management or
commission recapture and, as such, may suggest brokers to its clients as part of
these searches.
13 On occasion, Callan may receive and accept payment for the provision of its fund
sponsor services from a directed brokerage account when such fund sponsor
client directs its broker to send Callan a check to pay its client bill. Callan has no
soft dollar arrangements with any broker, and only accepts these checks as
payment for its hard dollar client fees. Other than payment of the invoice for
client services, no compensation is received from the broker.
Complete amended pages in full, circle amended items and file with execution page (page 1). PAGE 16
(c? Coovriaht 2008. National Reaulatorv Services. All Riahts Reserved.
List of Managers That Do Business with Callan Associates Inc. Quarterly List as of September 30, 2008
Confidential - For Callan Client Use Only
Callan Associates takes its fiduciary and disclosure responsibilities to clients very seriously. The list below is compiled and updated quarterly because we
believe our fund sponsor clients should have a clear understandi ng of the investment management organizations that do business with our firm. As of
09/30/2008, Callan provided educational, consulting, software, database, or reporting services to this list of managers through one or more of the following
business units: Institutional Consulting Group, Independent Advis er Group, Fund Sponsor Consulting, the Callan Investments Institute and the "Callan
College." Per strict policy these manager relationships do not affect the outcome or process by which any of Callan's services are conducted.
Fund sponsor clients may request a copy of this list at any time. Fund sponsor clients may also request specific information regarding the fees paid to
Callan by the managers employed by their fund. Per company pol icy, information requests regarding fees are handled exclusively by Callan's Compliance
Department.
Clients should also be aware that Callan maintains an asset management division, the Trust Advisory Group (TAG). TAG specializes in the design,
implementation and on-going management of multi-manager portfol ios for institutional investors. Currently TAG serves as the sponsor and advisor to a multi-
®
Funds. We are
manager small cap equity fund and as the non-discretionary adviser to a series of Target Maturity Funds known as the Callan GlidePath
happy to provide clients with more specific information regarding TAG, including detail on the portfolios that it oversees. Per company policy these requests
are handled by TAG's Chief Investment Officer.
Manager Name Educational Services Consulting Services
Aberdeen Asset Manaaement Y
Acadian Asset Manaaement. Inc. Y
Affiliated Managers Grouo, Inc. Y Y
AG Asset Manaaement Inc. Y
AIG Global Investment Group Y
Alleaiant Asset Manaaement Grouo Y Y
AllianceBernstein Y Y
Allianz Investor Services. LLC Y
Allstate Investments LLC Y
American Century Investment Manaaement Y Y
AmSouth/Investment Manaaement Grouo Y
Ariel Investments. LLC Y
Ark Asset Manaaement Co.. Inc. Y
Asset Strateav Consultants Y
Atalanta Sosnoff Caoital. LLC Y
Atlanta. Capital Manaaement Co.. L.L.C. Y Y
AXA Rosenbera Investment Manaaement Y
Baille Gifford International LLC Y
Baird Advisors Y Y
Bank of America ' Y
Barclavs Global Investors Y
Baring Asset Manaaement Y
Barrow. Hanlev. Mewhinnev & Strauss. Inc. Y
Battervmarch Financial Manaaement. Inc. Y
Bear Stearns Asset Manaaement Y Y
BlackRock Y
Boston Comoanv Asset Management. LLC (The) Y Y
BNY Mellon Asset Manaaement Y
Brandes Investment Partners. L.P. Y Y
_ Brandvwine Global Investment Manaaement, LLC Y Y
Brown Brothers Harriman & Comoanv Y
Cadence Caoital Manaaement Y
Caoital Guardian Trust Comoanv Y Y
CastleArk Manaaement. LLC Y
Causewav Caoital Manaaement Y
Chartwell Investment Partners. Y
Chicaao Eauity Partners. LLC Y
CIBC Global Asset Manaaement (USA) Ltd. Y
Citi Alternative Investments Y
Clear Bridae Advisors Y Y
Cohen & Steers Caoital Manaaement Y
Columbia Manaaement Advisors. LLC Y Y
Columbus Circle Investors Y Y
Cramer. Rosenthal MCGIvnn. LLC Y
Credit Suisse Asset Manaaement Y
Crocker Partners LLC Y
Davis Hamilton Jackson & Associates Y
DB Advisors Y Y
DDJ Caoital Manaaement. LLC Y
DE Shaw Investment Manaaement. L.L.C. Y
Delaware Investments Y Y
DePrince. Race & Zollo. Inc. Y
Deutsche Asset Manaaement/Deutsche Bank Y Y
DSM Capital Partners Y -
Page 1 of 4
List of Managers That Do Business with Callan Associates Inc. Quarterly List as of September 30, 2008
Confidential - For Callan Client Use Only
Callan Associates takes its fiduciary and disclos ure responsibilities to clients very seriously. The list below is compiled a nd updated quarterly because we
believe our fund sponsor clients should have a clear understanding of the investment management organizations that do business with our firm. As of
09/30/2008, Callan provided educational, consul ting, software, database, or reporting services to this list of managers through one or more of the following
business units: Institutional Consulting Group, Independent Adviser Group, Fund Sponsor Consulting, the Callan Investments Institute and the "Callan
College." Per strict policy these manager relatio nships do not affect the outcome or process by which any of Callan's services are conducted.
Fund sponsor clients may request a copy of th is list at any time. Fund sponsor clients may also request specific infor mation regarding the fees paid to
'
Callan by the managers employed by their fund s Compliance
. Per company policy, information requests regarding fees are handled exclusively by Callan
Department.
Clients should also be aware that Callan main tains an asset management division, the Trust Advisory Group (TAG). TAG specializes in the design,
lementation and on-going management of m
im ulti-manager portfolios for institutional investors. Currently TAG serves as t he sponsor and advisor to a multi-
p
manager small cap equity fund and as the non- discretionary adviser to a series of Target Maturity Funds known as the Callan GlidePath® Funds. We are
happy to provide clients with more specific infor mation regarding TAG, including detail on the portfolios that it oversees. Per company policy these requests
are handled by TAG's Chief Investment Officer.
Manager Name Educational Services Consulting Services
DuPont Capital Manaoement Y
Dwiaht Asset Manaaement Y
Eaole Asset Manaaement. Inc. Y
EARNEST Partners. LLC Y
Eaton Vance Manaoement Y Y
Edaar Lomax Companv (The) Y
EIM Asset Manaaement Y
Enhanced Inv. Technoloaies. LLC (INTECH) Y
Entrust Capital Inc. Y
Everareen Investments Y Y-
Favez Sarofim & Comoanv Y Y
Federated Investors Y Y
Fiduciary Asset Manaaement Y
Fifth ThirdAsset Manaaement. Inc. Y
Fortis Investments Y
Franklin Portfolio Associates Y
Franklin Templeton _ Y
Fred Alaer Manaaement Co., Inc. Y Y
Frolev. Revv Investment Comoanv. Inc. Y
GE Asset Manaaement Y Y
Geode Capital Manaaement. LLC Y
GlobeFlex Capital. L.P. Y
GoldenTree Asset Manaaement. LP Y
Goldman Sachs Asset Manaaement Y Y
Grande-Jean Capital Manaaement Y
Grantham. Mavo. Van Otterloo & Co.. LLC Y
Great Lakes Advisors, Inc. Y
,Harris Investment Manaaement. Inc. Y
Hartford Investment Manaaement Co./The Hartford Y Y
Heartland Advisors, Inc. Y
Henderson Global Investors Y
Hillcrest Asset Manaaement. LLC Y
HSBC Investments (USA) Inc. Y Y
Independence Investments LLC Y Y
ING Clarion Y
ING Investment Manaoement Y Y
INVESCO Y Y
Institutional Capital LLC Y
Investec Asset Manaaement Y
Janus Capital Manaaement. LLC Y
Jensen Investment Manaaement Y
JP Moraan Asset Manaaement Y
Julius Baer Investment Manaaement Y Y
Kellv Capital Manaaement. LLC Y
Kensington Investment Group Y
Kniahtsbridoe Asset Manaaement. LLC Y
Landon Butler & Companv. LP Y
Lazard Asset Manaaement Y Y
Lehman Brothers Inc. Y Y
Loomis. Savles & Companv. L.P. Y Y
Lord Abbett & Companv Y Y
LSV Asset Manaoement Y Y
MacKav-Shields LLC Y Y
Marauette_Asset,Manaaement Y
Page 2 of 4
List of Managers That Do Business with Callan Associates Inc. Quarterly List as of September 30, 2008
Confidential - For Callan Client Use Only
Callan Associates takes its fiduciary and disclosure responsibilities to clients very seriously. The list below is compiled and updated quarterly because we
believe our fund sponsor clients should have a clear understandi ng of the investment management organizations that do business with our firm. As of
09/30/2008, Callan provided educational, consulting, software, database, or reporting services to this list of managers through one or more of the following
"
Callan
business units: Institutional Consulting Group, Independent Adviser Group, Fund Sponsor Consulting, the Callan Investments Institute and the
College." Per strict policy these manager relationships do not affect the outcome or process by which any of Callan's services are conducted.
Fund sponsor clients may request a copy of this list at any time. Fund sponsor clients may also request specific inform ation regarding the fees paid to
'
Callan by the managers employed by their fund. Per company pol s Compliance
icy, information requests regarding fees are handled exclusively by Callan
Department.
Clients should also be aware that Callan maintains an asset management division, the Trust Advisory Group (TAG). TAG specializes in the design,
implementation and on-going management of multi-manager portfo lios for institutional investors. Currently TAG serves as th e sponsor and advisor to a multi-
®
er small cap equity fund and as the non-discretionary advis
mana Funds. We are
er to a series of Target Maturity Funds known as the Callan GlidePath
g
happy to provide clients with more specific information regarding TAG, including detail on the portfolios that it oversees. Per company policy these requests
are handled by TAG's Chief Investment Officer.
Manager Name Educational Services Consulting Services
Marvin & Palmer Associates, I nc. Y
Metrooolitan.Life, Insurance Comoanv Y
Metropolitan West Caoital Management. LLC Y
MFC Global, Investment Manaaement (U.S.) LLC Y -
MFS Investment Manaaement Y Y
Mondrian Investment Partners Limited Y Y
Montag & Caldwell. Inc. Y Y
Moraan Stanlev. Investment Manaaement Y Y
Natixis Global Asset Manaaement Y Y
Newton Caoital Manaaement Y
New York Life Investment Manaaement LLC (NYLIM) Y Y
Nicholas-Aooleoate Caoital Manaaement Y Y
Nomura Asset Manaaement U.S.A.. Inc. Y
Northern Trust Global Investment Services Y Y
Northern Trust Value Investors Y
Nuveen Investments Institutional Services Grouo Y Y
CA Institutional Asset Manaaement Y
Old-Mutual Asset. Manaaement Y Y
Oooenheimer Caoital Y
Optima Fund::Manaaement
Y
Pacific Investment Manaaement Com Danv Y
Paradigm Asset Manaaement Co.. LLC Y
Perearine Caoital Manaaement. Inc. Y
Philadelphia International Advisors. LP Y Y
Phoenix Investment Partners Ltd. Y
Pioneer Investment Manaaement. Inc. Y Y
Principal Global Investors Y Y
Provident investment Counsel Y
Prudential Investment Manaaement Y Y
Putnam Investments Y Y
Pvramis Global Advisors Y
RCM Y Y
Rice Hall James & Associates. LLC Y
RiverSource Investments. LLC Y Y
Robeco Investment Manaaement Y Y
Rothschild Asset Manaaement. Inc. Y Y
RREEF Funds (The) Y
Russell Investment Grouo Y
Schroder Investment Manaaement North America Inc. Y Y
Scottish Widows Investment Partnershio Y
SEI Investments Y Y
Seliaman (J. & W.) & Comoanv. Inc. Y Y
Sit Investment Associates, Inc. Y
Smith Grouo Asset Manaaement Y Y
Southeastern Asset Manaaement. Inc. Y
Standish Mellon Asset Manaaement Comoanv Y
State Street Global Advisors Y Y
Sterne Aaee Asset Manaaement Y
Stockbridae Real Estate Funds Y
Stone Harbor Investment Partners. L.P. Y
Stratton Manaaement Y
Svstematic Financial Manaaement Y Y
T. Rowe Price Associates. Inc. Y Y
Taolin. Canida & Habacht Y
Page 3 of 4
List of Managers That Do Business with Callan Associates Inc. Quarterly List as of September 30, 2008
Confidential - For Callan Client Use Only
Callan Associates takes its fiduciary and disclosure responsibilities to clients very seriously. The list below is compiled and updated quarterly because we
believe our fund sponsor clients should have a clear understanding of the investment management organizations that do business with our firm, As of
09/30/2008, Callan provided educational, consulting, software, database, or reporting services to this list of managers through one or more of the following
business units: Institutional Consulting Group, Independent Adviser Group, Fund Sponsor Consulting, the Callan Investments Institute and the "Callan
College." Per strict policy these manager relationships do not affect the outcome or process by which any of Callan's services are conducted.
Fund sponsor clients may request a copy of this list at any time. Fund sponsor clients may also request specific information regarding the fees paid to
Callan by the managers employed by their fund. Per company policy, information requests regarding fees are handled exclusively by Callan's Compliance
Department.
Clients should also be aware that Callan maintains an asset management division, the Trust Advisory Group (TAG). TAG specializes in the design,
implementation and on-going management of multi-manager portfolios for institutional investors. Currently TAG serves as the sponsor and advisor to a multi-
manager small cap equity fund and as the non-discretionary adviser to a series of Target Maturity Funds known as the Callan GlidePath® Funds. We are
happy to provide clients with more specific information regarding TAG, including detail on the portfolios that it oversees. Per company policy these requests
are handled by TAG's Chief Investment Officer.
Manager Name Educational Services Consulting Services
TD Asset Management (USA) Y
Thrivent Financial for Lutherans Y
Thompson. Siegel & Walmslev LLC Y
Thornburg Investment Management Y
TIAA-CREF Y
TimesSauare Capital Management. LLC Y
TCW Asset Management Comoanv Y
UBP Asset Management LLC Y
UBS Y Y
Union Bank of California Y
Vanguard Group. Inc, (The) Y
Victory CaDltal Management Inc. Y Y
Vovaaeur Asset Management Y
Waddell & Reed Asset Management Group Y
WEDGE Caoital Manaaement Y
Wellington Manaaement Comoanv. LLP Y
Wells Caoital Manaaement Y
Western Asset Manaaement Comoanv Y -
Westoort Caoital Partners LLC Y
William Blair & Co., Inc. Y
Zeohvr Management Y
Page 4 of 4