Specifications include, but are not limited to: 3.1. Category - Banking Services 3.1.1. The Contractor providing Banking Services must be a bank qualified to act as an eligible depository pursuant to A.R.S. § 35-310(1). 3.1.2. The Contractor providing Banking Services must maintain the availability of a branch banking system that provides reasonable proximity to the offices of the Funds, presently located at 100 N. 15th. Avenue, Ste. 261, Phoenix, AZ 85007. 3.1.3. The Contractor providing Banking Services shall ensure that customary treasury management services are available to both of the Funds. 3.1.4. Guaranty Funds Past Performance A) ALDIGF In calendar year 2022, total expenditures (claim payments and operating expenses) were $12M. At the end of calendar year 2022, ALDIGF had investments of $27.7M. B) APCIGF In calendar year 2022, total expenditures (claim payments and operating expenses) were $8.5M. At the end of calendar year 2022, APCIGF had investments of $206.4M. 3.1.5. The Contractor providing Banking Services will be required to provide, at the sole election of the Boards, any or all banking services that may include, but not be limited to, one or more of the following: A) For the ALDIGF: a. Administrative checking account; b. Disability claims checking account; c. Life claims checking account; d. Annuity claims checking account; e. One or more money market savings accounts; f. One or more zero balance accounts (ZBA’s); g. Wire transfer capability; h. Automated clearing house (ACH) and/or electronic data interface (EDI) services; i. Automatic transfers of assets, in accordance with instructions from the Board, to cover disbursements from checking accounts; j. Lock box service, wherein Contractor receives payments from post office deposits payments pursuant to instructions, and provides deposit detail to the Executive Director or designee; k. A revolving line of credit in an amount not to exceed $3 million; B) For the APCIGF: a. Two Administrative Expense checking accounts; b. Two Claims checking account; c. One or more money market savings accounts; d. One or more zero balance accounts (ZBA’s); e. Wire transfer facility; f. Automated clearing house (ACH) and/or electronic data interface (EDI) services; g. Automatic transfers of assets, in accordance with instructions from the Board, to cover disbursements from checking accounts; h. Lock box service, wherein Contractor receives payments from post office deposits payments pursuant to instructions, and provides deposit detail to the Executive Director or designee; i. A revolving line of credit in an amount not to exceed $3 million; 3.3.2 During the course of the contract period, bank accounts may be added or deleted according to the business requirements of the Funds. 3.2. Category - Investment Management 3.2.1. Contractor providing Investment Management Services must be an investment management firm registered with the U.S. Securities and Exchange Commission. 3.2.2. Contractor providing Investment Management Services is required to have been in business for a minimum of 2 years, and the primary individual(s) assigned to the Funds as lead advisors must have a minimum of 5 years professional experience in the investment advisory field. 3.2.3. The Contractor providing Investment Management Services shall act as investment manager of the assets that are currently or subsequently placed in the Funds’ portfolio of investments (“Portfolio”) and shall: a) Develop strategies for managing the Portfolio; b) Ensure the safety of the Funds’ assets, c) Earn maximum returns; and d) Provide timely advice to the Boards regarding investments and investment strategies. 3.2.4. The Contractor providing Investment Management Services shall have full designated authority and investment discretion in the management of the Portfolio and to direct the purchase, sale, exchange, conversion and/or transfer of securities in the Portfolio consistent with the Funds’ written investment policies and guidelines, objectives and restrictions. Refer to Exhibit 1 ALDIGF Investment Policy, Exhibit 2 APCIGF Investment Policy Auto & Other, and Exhibit 3 IAPCIGF Investment Policy WC for specifications on policies and guidelines for each Fund. 3.2.5. The Contractor providing Investment Management Services, as agent with respect to the Investment Portfolio, may: a) buy, sell, exchange, convert and otherwise trade in any and all stocks, bonds and other securities as the Contractor selects; b) establish accounts with one or more securities brokerage firms to effect purchases or sales of securities, and c) execute, sign, deliver and file any agreements, contracts, instruments, certificates or documents as deemed necessary by Contractor to carry out its investment management activities as set forth in the investment guidelines attached hereto as Exhibit 1, Exhibit 2, and Exhibit 3. 3.2.6. IN addition to section 3.2.5 the Contractor providing Investment Management Services is required to: a) Provide on a monthly basis or as required by the Boards a report on the investment activity of the Portfolio. b) Review the Funds’ investment policy and guidelines once a year or as required by the Boards and will adhere to any adjustments and modifications made to the investment guidelines. c) Assign an account representative to be the main point of contact. Once assigned to work under the contract the account representative shall not be removed or replaced without the prior written approval of the Agency. 3.2.7. The Contractor providing Investment Management Services is authorized to instruct the Investment Custodian to make and accept payments for, and to deliver or to receive, securities, cash or other investments purchased, sold, redeemed exchanged, pledged or loaned for the Portfolio. The Funds will notify the Investment Manager in writing, or agrees to instruct the Investment Custodian to notify the Investment Manager in writing, promptly of any anticipated additions to, or withdrawals from, the Investment Portfolio. 3.2.8. Subject to acceptance by the Boards, the Contractor will be required to provide qualified assistance in connection with the investment of the assets of the Funds, pursuant to and in accordance with the formal statement of investment policy and guidelines adopted by each of the Boards. Refer to Exhibit 1, Exhibit 2, and Exhibit 3 to review each Fund’s policy and guidelines. 3.2.9. The Contractor providing Investment Management Services shall perform special functions in connection with the financial services to be rendered hereunder, as from time to time are deemed necessary by the Funds. Such requested special functions must be in accord with this RFP and the resultant contract.
