Investment Advisory Services and Municiple Financial Products Advisory Services

Background
The City of Waco, Texas is seeking qualified firms to provide professional advisory services in two distinct but complementary service areas: Investment Advisory Services under the Texas Public Funds Investment Act and Municipal Financial Products (MFP) Advisory Services. The goal is to engage firms that can demonstrate expertise and qualifications in these areas to assist the City in managing its investment portfolio and financial products effectively.

Work Details
The contract encompasses two service areas:

1. **Investment Advisory Services**:
- Provide sub-advised discretionary investment advisory services for the City's investment portfolio in compliance with the Texas Public Funds Investment Act (TFPIA).
- Core services include:
- Investment strategy and policy development, including updates to the City's Investment Policy.
- Comprehensive oversight of all investment purchases and transactions.
- Safekeeping and custody oversight for all City investments.
- Portfolio management guidance, including recommendations for composition and adjustments based on market conditions.
- Performance monitoring and reporting, including quarterly reports to the City Council.
- Regulatory compliance with TFPIA requirements.

2. **Municipal Financial Products (MFP) Advisory Services**:
- Provide specialized investment structuring, hedging, and optimization strategies related to debt-related funds, construction funds, and operational risk management.
- Core services include:
- Financial products advisory for structuring investments for debt-related funds.
- Swap and derivative advisory services for interest rate swaps and commodity hedging transactions.
- Trade maintenance and compliance reporting for GASB requirements.
- Energy risk management advisory services for evaluating energy commodity contracts.

Period of Performance
The initial term of engagement is three (3) years from contract execution, with options for two (2) additional one-year terms at the City's discretion.

Place of Performance
Services will be performed within the City of Waco, Texas.

Bidder Requirements
Bidders must demonstrate fiduciary duty to the City with no conflicts of interest. For Service Area 1, qualifications include registration as a Registered Investment Advisor (RIA) with at least five years of experience providing investment advisory services to Texas public entities. For Service Area 2, qualifications include registration as a Municipal Advisor with the SEC and MSRB, along with specialized expertise in municipal financial products. Both service areas require professional liability insurance of at least $2 million.