Fixed_Income_Questions_5_(2-19-15).pdf

Questions #5

1. Section C Statement of Work: Fidelity Bond and Insurance Coverage

We maintain all required fidelity bond and E&O coverage well in excess of PBGC's stated requirements. However we are self insured for the deductible of these policies therefore cannot name PBGC as loss payee. We are happy to provide evidence on an annual basis to illustrate the strength of our balance sheet that allows us to self insure for the deductibles and the coverage beyond that. Will this be sufficient with the PBGC?

Answer: All Offerors are required to meet the fidelity bond and E&O insurance coverage as stated Section C of the solicitation.

2. With reference to Section H ‘Special Contract Clauses’ we have the following comments/points of clarification which we would look forward to discussing with you as they relate to the Contractor where in a case such as ours the Contractor is a UK investment manager operating from its London office with a collective investment team approach which applies to all accounts we manage. As you would appreciate, there are also local law clauses where we will obtain local advice to the extent required to ensure we are fully cognizant of all obligations under the agreement. Our comments relate to various clauses including the following key ones:

a. Section H.1 PBGC-03-001: our contracts of employment govern employee’s use of confidential information so we could provide you with an extract of such a contract to ensure this meets your requirements because it is not feasible to have each employee sign up to a separate agreement, nor do we believe this is needed to protect the Government’s confidentiality as all our employees are already subject to general duties which cover this for all our clients to whom we owe fiduciary responsibilities. We would also like to discuss how (d) and (e) operate in the case of sub-contractors.

Answer: PBGC expects most offerors have their own confidentiality policy in place.

It is incumbent upon offerors to ensure their policies are consistent with PBGC’s confidentiality clause. At this time, offerors are not required to submit nondisclosure agreements for each of their employees. In the event PBGC requests confidentiality agreements, PBGC would be willing to review confidentiality agreements already in place to determine if they are sufficient under this clause.

3. Would it be possible to get a copy of a sample Investment Management Agreement?

Answer: The terms and conditions in the contract form the basis for the Investment

Management Agreement.