Chicago teachers fund issues RFP for global custody, securities lending

Chicago Public School Teachers' Pension & Retirement Fund is searching for global custodial and securities-lending services, according to an RFP.

The $9.7 billion fund will consider proposals for both bundling securities lending with custodial services and stand-alone proposals. Northern Trust, the incumbent for both services, will be allowed to rebid.

Carmen Heredia-Lopez, the fund’s chief investment officer, said in an e-mail responding to questions it is not likely CTPF would hire more than one firm for securities lending.

The pension fund is undertaking the search as a best-practice review to gauge the market for best providers for the plan, according to the RFP. Callan Associates, the fund's investment consultant, is assisting with the search.

The RFP is posted at the Chicago teachers' website. Proposals are due Sept. 18. The pension fund expects to make a decision Dec. 12. The contract would begin July 1, 2014.