Introduction

The Will County Treasurer’s Office seeks proposals from approved depositories and investment advisors interested in providing a managed investment product for a maximum of $25-million in the County’s Corporate Class C Fund. The County desires to contract with a firm registered with the Securities and Exchange Commission (SEC) under the Investment Advisor’s Act of 1940.

The firm shall buy and sell investment securities on behalf of the County, provide proper custodial arrangements, and otherwise act as a portfolio manager and broker under the supervision of the Treasurer’s Office and in conformity with applicable Illinois law.

Current Mandate and Discussion

The current incumbent has managed this assignment for approximately four years. The original investment was $25-million. In 2014, our office withdrew $5-million in principal assets to cover operating cash flow needs for the county. This investment is made of county operating funds. It is our intention to replenish the assignment to the $25-million level.

Fund Managers must understand that liquidity is a component of this assignment. For example, the current incumbent allocates 20% to 25% of the portfolio in short-term commercial paper. This mixture allows the Treasurer’s Office to make a withdrawal to accommodate shifting legislative priorities of the Will County Board or unanticipated expenditures of certain county agencies such as the Will County Highway Department or Will County Sheriff’s Police.

Under an extreme circumstance, the Treasurer’s Office could ask the manager to return the entire investment before the end of the assignment for similar reasons. However, it is our expectation that a majority, if not all, of this investment will remain fully invested throughout the duration of the three year assignment.

Minimum Requirements

The following are minimum requirements necessary for a qualified proposal.

  1. Proposing Institutions shall be approved Will County Depositories or Investment Advisors as of October 1, 2015. The Will County Treasurer has final decision on this qualification.
  2. Proposing Institutions must meet requirements in the May 2013 Will County Treasurer’s Investment Policy for Authorized Financial Dealers and Institutions and Safekeeping of Collateral.
  3. Proposing Institutions must be registered with the Securities and Exchange Commission under the Investment Advisor’s Act of 1940.
  4. Proposing Institutions must have Errors & Omissions and Fiduciary Liability Insurance coverage of at least $10-million.
  5. Proposing Institutions must adhere to the Code of Professional and Ethical Standards as described by the CFA Institute.
  6. Proposing Institutions must have a minimum of ten years of experience in managing fixed income assets for state and local governments.
  7. Proposing Institutions must currently manage domestic fixed income assets for public organizations or municipal corporations. A firm’s own funds do not count as public funds.
  8. Proposing Institutions and its personnel must have all authorizations, permits, licenses, and certifications required by federal and state laws and regulations to perform the services specified in this Request for Proposal.
  9. Proposing Institutions must construct a Model Portfolio based upon a $25-million investment with an average duration of no less than 18 months and no more than 5 years. The Model Portfolio should detail for each security the quantity, original face, description, type of security, coupon, maturity date, price, yield to maturity, yield to worst, modified duration, principal amount, and rating by at least two rating agencies. Long-term ratings must be A or better. Short-term ratings must be A1/P1 or better.
  10. Proposing Institutions must restrict investment selection to investments authorized by the Public Funds Investment Act at 30 ILCS 235/2 and otherwise be familiar with applicable Illinois law with regard to qualified investments for public entities. No more than 25% of the portfolio shall be invested in commercial paper.
  11. Proposing Institutions must provide the fee schedule that would apply to this contract as well as a list of expenses not covered by fees.
  12. Proposing Institutions must include arrangements for third-party custody and include custodial fees as part of its overall fee schedule.
  13. Proposing Institutions acknowledge the right of the Will County Treasurer to accept the proposal deemed most favorable to the interest of the taxpayers of the County of Will after all proposals have been examined and evaluated by the Will County Treasurer.

Scope of Service

Specific responsibilities of the Selected Institution will include, but not be limited to, the following:

  • The Selected Institution will serve as a portfolio manager under the supervision of the Will County Treasurer or his designee.
  • The Selected Institution will act as a fiduciary.
  • The Selected Institution will provide monthly, quarterly, and an annual investment reports as to performance, market conditions, and suggested changes to the strategy.
  • This agreement will be assigned to the Selected Institution for a maximum of three years with the Will County Treasurer reserving the right to review or rebid the agreement annually.

Required Information

Responses to this Request for Proposal should set forth the specific manner in with the Proposing Institution will satisfy each Minimum Requirement noted in this document. Please do so by responding in a narrative form. Proposing Institutions may include supplementary narrative describing the general conceptual approach to the delivery of specific services and any other information they believe relevant.

How to Propose

Please submit proposals in person or via US Postal Mail by the deadline to the following address:

Brian McDaniel, Chief Investment Officer
Will County Treasurer’s Office
302 North Chicago Street
Joliet, IL 60432

Deadline

Please submit proposals by Noon Central Time on Friday, October 30, 2015.

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