What is the prequalification timeline?
Prequalification forms must be submitted no later than 5:00 p.m. Eastern Time, Wednesday, December 23, 2020. The New York Fed expects to complete its prequalification review in mid-January 2021 and will notify all firms submitting responses after that review is complete. The New York Fed will determine whether to issue an RFP based on information provided in the prequalification submissions and an updated assessment of its business needs.
Can applicants convert the document to Word prior to PDF submission to provide responses without restricted character counts imposed by the editable PDF form?
Applicants can provide additional information in the “additional comments” box at the end of the prequalification form. If the space in the comment box is still prohibitive, applicants may convert the PDF to Word.
What is the anticipated AUM/size of this mandate?
As of November 30, the Facility’s cash investment portfolio held $53 million in assets under management. Those holdings are expected to decrease over the remaining life of the Facility as operating expenses are paid. Assets under management could increase if market conditions evolve in a way that encourages additional Facility usage (i.e., new issuer registrations or additional commercial paper purchases, which generate cash inflows).
Is this a multi-manager mandate or will the full mandate be awarded to one CIM?
The mandate will be awarded to one CIM.
What is the portfolio’s performance benchmark(s)?
The CPFF’s current Investment Account guidelines, including its performance benchmark, are outlined in Exhibit B of the existing Investment Management Agreement, as amended.
What are the eligible investments for this mandate? Can the FRBNY also provide a list of eligible agency issuers, if applicable?
The CPFF’s current Investment Account guidelines, including a glossary, are outlined in Exhibit B of the existing Investment Management Agreement, as amended.
Will this mandate replace PIMCO as the CIM?
This initiative is a competitive procurement for CIM services currently performed by PIMCO as the CPFF’s Investment Manager.
When a security matures while the Facility is still authorized to purchase commercial paper (until March 31, 2021), does that cash go back to the FRBNY and/or is it reinvested by the CIM back into eligible investments?
Net proceeds from the Facility’s maturing commercial paper (payments received on the paper less principal and interest owed to the New York Fed to repay its loan to the Facility) go into the Facility’s Investment Account managed by the CIM.
When a security matures after the Facility’s authorization to purchase commercial paper expires (after March 31, 2021), does that cash go back to the FRBNY and/or is it reinvested by the CIM back into eligible investments?
Net proceeds from the Facility’s maturing commercial paper (payments received on the paper less principal and interest owed to the New York Fed to repay its loan to the Facility) go into the Facility’s Investment Account managed by the CIM.
Following the maturity or resolution of all commercial paper holdings after the Facility’s authorization to purchase commercial paper expires, the Facility will be wound down. Investment Account holdings will be used to settle any outstanding vendor fees and then be distributed according to the waterfall outlined in the Facility’s Limited Liability Company Agreement.
Would the New York Fed accept a joint venture submission relative to this role whereby the prospective adviser has a sub-adviser agreement / relationship with a long existing partner to provide certain sub-investment advisory services to the adviser?
Interested firms using subcontractors may participate in the prequalification process. Prequalification submissions using such structures should clearly identify any subcontractors and clearly describe the relationship, including but not limited to outlining what services would be performed by each party and summarizing how the relationship between the prime vendor and subcontractor(s) would be managed. Additionally, please identify whether any subcontractors are majority owned by individuals who are minorities, women, or veterans or whether any subcontractor has been certified diverse. If certified diverse, please list certifications. (The New York Fed collects this information for analytical purposes; it does not use this information in the selection of vendors for the Facilities.)
