2020 Custody RFP & RFI

1. 2020 Custody RFP & RFI June 13, 2019

2. Custody RFP: Cross Impacted Pension Funds and Agencies • Ohio Bureau of Workers’ Compensation • Ohio Police and Fire Pension Fund • Public Employees Retirement System of Ohio • School Employees Retirement System of Ohio • State Highway Patrol Retirement System • State Teachers Retirement System of Ohio • Ohio Tuition Trust Authority • Southern Ohio Agricultural and Community Development • State Treasury

3. Custody RFP: Commitment • The Treasurer’s Office (TOS) will further improve the custodial RFP process to ensure the ongoing engagement and participation of the retirement funds and other agencies (Funds) • For the 2020 RFP TOS commits to continue to provide and further expand • Transparency • Engagement • Participation

4. Custody RFP: 2016 RFP Improvement Recap • RFP Enhancements • Re-write of the RFP • Naming of respondent finalists • Elongated RFP timeline • Onsite respondent finalist oral presentations • Pre-designation legal discussions • Formal fee negotiations • Custodial executed FX included in the RFP allowing for holistic custody fee evaluation and negotiation • Custody consultant engaged to assist in the technical evaluation, oral presentations, fee and custody FX rates, and contract discussions

5. Custody RFP: 2016 RFP Improvements Recap • Fund engagement • Engaged Funds for suggestions on the RFP approach, timeline, and other improvements • Funds asked to review the draft RFP with their feedback incorporated • Fund specific requirements, ancillary services, and questions included • Funds received all the RFP written responses for review • Funds participated in the RFP finalist oral presentations • Pre-fee negotiation Fund placement preference discussion to improve negotiating position • Fund feedback on respondents requested and taken into account • Funds asked to provide respondent rankings and placement preferences

6. Custody RFP: 2020 – Additional Enhancements • For the 2020 RFP, TOS wants to continue to partner with the Funds and provide even greater engagement and transparency • Carry forward all the 2016 RFP enhancements • Assess and incorporate incumbent custodian service performance for last 12 months • Funds asked to assess their incumbent custodian(s) performance • Custodians to self-assess their performance perceptions with RPF response • Reviewed in the oral presentations and accounted for in overall evaluations • Share all the completed TOS technical evaluation/other documents with the Funds for review and feedback • Share all the completed TOS fee evaluation documentation with the Funds for review and feedback • As in 2016, Funds views and preferences will be sought and taken into account

7. Custody RFP: 2020 RFP Timeline • Q1/Q2 2019 • Custody Consultant RFI released - Completed • Custody Consultant RFI responses due - Completed • Custody Consultant RFI selection announced – Completed • TOS/Funds kick off meetings – by 06/14/2019 • TOS edits to RFP/RFI and other templates – by 06/30/2019 • Draft RFI/RFP and other templates provided to the Funds for review – by 06/30/2019 • Q3 2019 • Fund demographic information received – by 08/31/2019 • RFP/RFI feedback and edits from the Funds – by 08/31/2019 • Final draft RFP/RFI provided to the Funds – by 09/30/2019

8. Custody RFP: 2020 RFP Timeline continued • Q4 2019 • Final RFI/RFP provided to the Funds– by 10/25/2019 • Incumbent Custodian Scorecard from the Funds– by 11/01/2019 • Ohio newspaper advertisement publication date 1 – by 10/19/2019 • Ohio newspaper advertisement publication date 2 – by 10/26/2019 • Pension & Investment advertisement publication date – by 10/26/2019 • RFI/RFP release date – 11/01/2019 • Submission deadline for RFP/RFI inquiries – 11/20/2019 • Inquiry responses posted on TOS website – 11/26/2019 • RFP/RFI technical response submission due date – 12/13/2019 • RFP/RFI submissions provided to the Funds for review – 12/16/2019

9. Custody RFP: 2020 RFP Timeline continued • Q1 2020 • Funds provided with TOS Technical Evaluation – by 01/22/2020 • Funds provided with initial Respondent Fee analysis – by 01/22/2020 • Respondent Finalists notifications – by 01/24/2020 • TOS on-site Oral presentations with the Funds - by 02/14/2020 • Pre-designation preferences provided by the Funds – by 02/18/2020 • Legal calls – by 02/28/2020 • Reference check calls conducted – by 02/28/2020 • Respondent Finalist fee negotiations – by 02/28/2020 • Reference call summaries provided to the Funds – by 03/02/2020 • Final Fee Analysis provided to the Funds – by 03/02/2020 • Final Fund placement preferences provided to TOS – by 03/06/2020 • Domestic and Global Custodian designation – by 03/16/2020

10. Custody RFP: 2020 RFP Documents • RFP/RFI • Domestic Custody RFP • Global Custody RFI • RFP/RFI Exhibits • Letter of Transmittal • Business Requirements • Deviations from RFP/RFI Business Requirements • Minimum Technical Requirements – Transaction File • Minimum Technical Requirements – Holding File • Fee Proposal • Custodian Self-Evaluation Template • RFP/RFI Appendixes • Beneficial Owner Profile Templates

11. Custody RFP: 2020 RFP Evaluation Documents • RFP/RFI Respondent Evaluation Documents • Technical (written) Response Evaluation Templates • Fee Evaluation Templates • Reference Check Templates • Beneficial Owner - Incumbent Custodian Evaluation Forms • Oral Presentation Evaluation Templates • Contract Discussion Overview Templates • Beneficial Owner Preference Templates