The Iowa state treasurer issued a joint RFP for global custody and securities lending services for the $25.1 billion Iowa Public Employees' Retirement System, as well as two other state retirement systems and 12 other state investment funds, all based in Des Moines.
Michael L. Fitzgerald, state treasurer and custodian of the retirement systems and investment funds, is seeking both bundled responses combining custody and securities lending, and separate responses for only securities lending services.
Of the funds included in the RFP, only Iowa PERS, the $329 million Iowa Public Safety Peace Officers' Retirement, Accident and Disability System, and the $129 million Iowa Judicial Retirement System use securities lending.
Stefanie Devine, Iowa deputy treasurer, said Mr. Fitzgerald could hire separate firms for global custody and securities lending. She expects all the funds would use the same firm or firms for the services.
Bank of New York Mellon is the incumbent custodian and securities lending agent for all the funds. Its contract is expiring on June 30, 2014, triggering the search, Ms. Devine said.
BNY Mellon is allowed to rebid, Ms. Devine said.
The other funds included in the RFP are the $3.6 billion state pooled treasury operating fund and 11 other funds, whose assets range from $200,000 to $32.2 million.
The RFP is available here. Proposals are due Nov. 22.
A decision by Mr. Fitzgerald, who has full discretion, is expected in January.
The contract start date is scheduled for July 1.
