The Vendor is required to provide the investment portfolio is built up over time from annual premiums that agency member institutions pay on insured deposits.
- Provide liquidity as necessary for member resolution and agency operations, to preserve capital and to provide a reasonable yield considering overall investment constraints.
- Reviews of treasury activities, management is seeking assistance in reviewing agency investment strategy, sources of liquidity and financial risk policies.
- This may include the review of the current investment strategy, liquidity management, and resolution funding to identify alternatives if required, potential outsourcing arrangements and compliance with the minister for corporations.
- Provide services in respect of the review of the financial risk policies, investment strategy, liquidity management and resolution funding, including:
1. Conduct an efficient frontier analysis to assess current asset allocation and as support for any proposed amendments to asset allocation strategies;
2. Propose additions to, or exclusions from, current asset allocation including how such changes align with agency investment objectives, its liquidity management, resolution funding priorities, and risk tolerance statement and how such additions or exclusions compare to agency existing policy constraints;
3. Review agency risk tolerance, stress testing, and value at risk approach and provide a comparison against industry best practices;
4. Propose improvements to agency practices and procedures for investments and sources of liquidity and resolution funding that are consistent with industry best practices (e.g., a duration-based target); and
5. Provide such other related services as agency may require and the successful candidate may agree to provide, including but not limited to:
• Make recommendations, including a cost and benefits analysis, of an interest rate and foreign currency hedging program (e.g., floating -rate bonds, fixed-for floating rate interest rate swaps, USD foreign-currency denominated bonds, etc.);
• Assess the impact of stressed environments on asset allocation strategies, sources of liquidity or other recommendations (e.g., a rising rate environment, declining rate environment, moderate recession, a severe crisis, an idiosyncratic regional stress event, etc.);
• Assess opportunities for outsourcing the management of agency investment portfolio, liquidity management and resolution funding considering agency role in state financial safety net including but not limited to analyses of pros and cons, and an evaluation of how such opportunities meet “know your client” and anti-money laundering requirements; etc.
- Contract Period/Term: 1 year
- Questions/Inquires Deadline: May 15, 2025