The System is acceptingresponses to a Request for Proposal (RFP) in connection with the award of acontract, in accordance with the terms, conditions, and requirements set forthin this RFP, for custody services, as more fully described herein, covering itsendowment fund and operating funds.The EndowmentFund is a pooled, unitized fund consisting of approximately 1,688 sub-fundaccounts with a combined market value of $580.6 million as of 12/31/16. Theendowment fund assets are allocated among 65 investment managers. Please referto Exhibit C for a detailed list of the types of investment managers andcustody accounts currently being used by the System. Some of these managers areunder a directed brokerage arrangement with the System. The System uses FrankRussell Implementation Services for its commission recapture program. Anytransactional cash held by one or more of our separate account managers isautomatically invested at the end of the day in an AAAmf money market fundsponsored by the custodian. The System does not currently have a securitieslending program, and we do not anticipate establishing one; thereforeinformation concerning securities lending is not necessary. Periodic reportingis required at the pooled fund level, asset class level, manager level, andsub-fund account level.Operating fundsof the System are separated into two parts: short term funds (STF) andintermediate term funds (ITF). The STF is unitized and totals $172.3 million asof January 31, 2017. Each of the components of the System owns a portion of theSTF. The STF invests in a nationally recognized AAAmf money market fund. Thecustodian's institution will not be the fund sponsor for the money market fundsin which the System's operating funds are invested. We currently provide writteninstruction to the custodian when we need to purchase or redeem shares from thefund sponsor.
The ITF is unitized and is comprisedof fixed income securities managed by an external investment manager. The fiveSystem components currently invest in the ITF. The ITF has a market value of$246.3 million as of January 31, 2017. Any transactional cash held by the ITFmanager is automatically invested at the end of the day in a AAAmf money marketfund sponsored by the custodian. Reporting for the STF and ITF is by each ofthe five components of the System.
RESPONDENTSARE CAUTIONED TO READ THE INFORMATION CONTAINED IN THIS RFP CAREFULLY AND TOSUBMIT A COMPLETE RESPONSE TO ALL REQUIREMENTS AND QUESTIONS AS DIRECTED.
Anycontract resulting from this RFP will become effective upon the later of theeffective date indicated in the contract or the date that all parties havesigned the contract.
To view bid on Jaeggerwebsite: https://bids01.jaggaer.com/apps/Router/PublicEvent?CustomerOrg=UH
Background
The University of Houston (UH) is issuing a Request for Proposal (RFP) for custody services related to its endowment fund and operating funds. The goal of this contract is to manage and safeguard the financial assets of the university, which includes a pooled endowment fund consisting of approximately 1,688 sub-fund accounts with a combined market value of $580.6 million as of December 31, 2016.
The endowment fund assets are allocated among 65 investment managers, and periodic reporting is required at various levels.
Work Details
The selected contractor will provide custody services for both the Endowment Fund and Operating Funds. Specific responsibilities include:
- Managing approximately 1,688 sub-fund accounts.
- Providing periodic reporting at the pooled fund level, asset class level, manager level, and sub-fund account level.
- Overseeing short-term funds (STF) totaling $172.3 million and intermediate term funds (ITF) valued at $246.3 million.
- Ensuring transactional cash held by managers is invested in AAAmf money market funds.
- Facilitating written instructions for purchasing or redeeming shares from fund sponsors.
Period of Performance
The contract period will commence upon the effective date indicated in the contract or the date that all parties have signed the contract.
Place of Performance
The services will be performed at the University of Houston.
