Custody Services for Investments of United Nations Treasury

A. Introduction United Nations (UN), an international intergovernmental organization headquartered in New York, is seeking a qualified bank to participate in a competitive solicitation for the provision of Custody Services for Investments of UN Treasury. UN Treasury manages fixed income and short-term money market investments with a market value of USD 8-10 billion (with a small portion invested in EUR and CHF denominated investments). Investments are processed by Investments Accounting Unit (IAU) Accounts Division, an in-house back office whose process is fully automated to the custodian using SWIFT message communication. The UN accounting ERP system is SAP. Some of the instruments invested/traded are: • US Treasury - bills and notes; • US Agencies - callable, bullets, fixed, variable and discounted; • Certificates of Deposit - Yankee and Eurodollar; • Commercial Paper – Yankee and ECP; • Euro Sovereign, Supranational and Agency Bonds - fixed, variable and discounted; and • Repurchase Agreements (collateral held at a different custodian in tri-party repurchase agreements). The role of a custodian is the following: a. Hold in safekeeping assets/securities; b. Arrange settlement of any purchases and sales and deliveries in/out; c. Collect information, income and administer tax reclamation; d. Administer voluntary and involuntary corporate actions; e. Provide rating information on the securities; f. Provide asset pricing on the securities; g. Maintain accounts, effect deposits and withdrawals, and manage transactions; and h. Invest excess balances in Bank Deposits or Commercial Paper or other investment vehicle (excluding mutual funds). B. Objectives The primary objectives of this solicitation are to: • Ensure the safety of all securities held; • Efficient, effective, and timely services and reporting; • Ensure the highest level of customer service; and • Establish optimal pricing for the services defined within this RFP. C. Current Volumes The UN receives approximately USD 15 billion annually in contributions from 193 member states and non-governmental donors. These contributions are received and spent throughout the year. There are approximately 20 investment trades per month. Overnight amounts held at the custodian ranges from USD 400 million to USD 2 billion. The portfolio currently has an 11 month turnover. The UN does not warrant or represent that any such volume will be maintained during the term of the contract with the successful Proposer.