Provision of Custody services to the Global Fund Provident Fund

Structure

The Provident Fund is not established as a separate legal entity from The Global Fund. The Provident Fund therefore shares all the privileges and immunities that are enjoyed by The Global Fund itself under the terms of its Headquarters Agreement with the Swiss Federal Council and other laws, and any other similar agreements or arrangements that may be in effect from time to time. These privileges and immunities exempt the Provident Fund and its assets from, inter alia, taxation and pension regulations in Switzerland and other applicable countries.

However, the Provident Fund assets are segregated from all other assets of The Global Fund and are restricted for use wholly and exclusively for the stated purpose of Provident Fund in accordance with rules and procedures established for its operation.

The assets of the GFPF are currently deposited with a custodian bank.

Financials

The Provident Fund’s liability is denominated in CHF, which is the Provident Fund’s reference currency. A majority of investments are CHF- denominated or hedged into CHF. The value of Provident Fund’s assets is currently about CHF180m at year-end 2019, invested, through a custodian bank, in 8 investment funds in the following asset classes: sovereign and corporate bonds, global equities, real estate, and emerging market debts. In addition, the Provident Fund maintains a cash balance in CHF.

Custody services

1. Transaction and holding of main asset classes, jurisdictions and types of securities (provide any restrictions)
2. Investment in funds share classes with special tax status
3. Provision of segregated account (for situations where omnibus account is not possible)

Cash management

1. Cash management and payment services
2. Ability to operate in multiple currencies
3. Online banking platform (E-banking) (separate from investment reporting capability)
4. Conditions on CHF balances and balances in other currencies, including applicable interest
5. SWIFT connectivity for payments and reporting through FileAct/XML
6. Other cash management and payments services, including multi-currency capabilities, zero-based account (ZBA)

Reporting

1. Standard reporting capability for pension funds: performance reporting, performance attribution, transactions, compliance with SAA parameters
2. Online reporting tool(s)
3. Sustainability reporting
4. Cost reporting (TER, etc.)
5. Ability to report on underlying securities in investment funds: describe range and asset classes of funds included (look-through)
6. Reporting in CHF
7. Tax reporting, including tax matters within investment funds (and preparation of tax reclaim if applicable)
8. Ability to customize reporting according to client needs.

Transition

1. Transfer of securities from the existing custodian
2. Transfer of historical transaction data and financial performance since 1 January 2015

Innovation

1. The Global Fund is looking for an innovative and flexible solution to its current and future requirements. The bidder is encouraged to supply additional information and ideas relating to The Global Fund requirements in a separate appendix.

Relationship and quality management

1. Dedicated relationship manager with systematic backup
2. Dedicated trading/transaction desk

Risk management

1. Financial risk management: rating and capitalisation
2. Operational risk management
3. Segregation/independence of custody services and other bank services