Skip to main content
Publish date:

Request for Proposals-Investment Management Services/Trustee

Request for Proposals

Investment Management Services/Trustee

Issued: 11/17/21

0 Overview:

      The Tonto Apache Indian Tribe (the Tribe) is seeking to hire an investment firm/financial advisor (Advisor) and trustee services firm (Trustee), which may or may not be the same entity, to assist the Tribe in meeting its investment objectives concerning its minor trust accounts. The purpose of this Request for Proposal (RFP) is to solicit responses from experienced and qualified firms that can meet the needs of this proposal in an effective and cost-effective manner.

      The Tribe is a federally recognized Indian tribe located on its Reservation lands which are adjacent to the town of Payson, Arizona in the northeastern part of the state about 80 miles from Phoenix.

     The Tribe currently receives revenue from various sources, including its gaming operations. The Tribe has enacted a Per Capita Ordinance and Revenue Allocation Plan, which authorize per capita payments from gaming revenue to all Tribal members. The Indian Gaming Regulatory Act (or IGRA) requires per capita payments to minors to be paid into a trust for the benefit of the minors. This RFP is for the management and trustee services of these minor trusts, for which there are currently less than 100 minors.

0.1 Submit Proposal to:

Mailing Address (10 copies):

Chairman Calvin Johnson

Tonto Apache Tribe

Tonto Apache Reservation #30

Payson, AZ 85541

Electronic delivery address (PDF document with the title “RFP: Tonto Apache / (Advisor Name) submission”):

REQUEST FOR PROPOSAL DEADLINE: The deadline will be 5:00 PM PST on (December 31, 2021). Any proposals received after the deadline may not be accepted.

0.2 Inquiries

    The Tribe has hired an outside consultant to assist in the RFP process. Questions should be directed to the consultant, and not the Tribe. Contact Hugh Cohen at Portfolio Monitoring LLC, email:

1 Firm Basics: The following information will be submitted for both the Advisor and Trustee (if different).

1.1 Firm Name.

1.2 Address (local- which will be doing business with the Tribe).

1.3 Type of Organization.

1.4 Name and contact information (phone and email) of individual filling out the form.

1.5 Additional contact person and contact information as appropriate.

1.6 Assets under management by firm and AUM by proposed manager, if different.

1.7 In the event of an adverse judgement:

1.7.1 What levels of insurance policies are in place at your firm? (Do not provide copies at this time of the application process). Error and omission insurance. Other fiduciary and professional liability insurance.

1.7.2 Approximately what owner’s equity, not AUM, is available to pay a claim?

2 Your Team – both Advisor / Trustee.

2.1 Please provide the names, educational background, securities licenses held, and number of years of relevant experience of the principal members of your team who you propose will be providing services, including back-office services to the Tribe.

2.2 Provide an organizational overview of your firm, including its corporate and ownership structure.

2.3 Provide all affiliated companies, including parent and subsidiary companies. We are specifically asking for the names of any affiliated entities that might benefit from your proposal.

2.4 Over the past seven (7) years, please detail any litigation (including criminal, civil, and administrative actions, regardless of whether matters were fully adjudicated) involving:

2.4.1 The principal members of your team.

2.4.2 Your firm.

2.4.3 Affiliates of your firm.

2.5 Describe your experience in managing Tribal Minor Trusts, both in number of clients and size of accounts, also include the range (lowest and highest) of the values of your current minor trust accounts.

2.6 How many accounts and for how many years, has this team of FA and Trustee worked together?

2.7 List, but do not provide copies, of all appropriate state and national licenses required to act in this capacity.

2.8 List any senior staff that has departed your team in the past two years, and the reason for their departure.

3 Investment Philosophy

      Currently, our Minors trust is broken up into two separate portfolios: age 15 and under, and age 16 and above. Starting at age 18, minors begin scheduled redemptions, 10% per year over the next 10 years. Redemptions may also be made early based on individual circumstances. The current investments are in stocks, bonds, and cash with different target asset class allocations for the different portfolios.

3.1 What target asset class allocations would you propose? (You may change the number of portfolios).

3.2 Include a specific portfolio(s) that you propose for us as of the last fiscal quarter.

3.3 Completely describe the research process that you used to arrive at your specific portfolio.

3.3.1 How were the assets classes determined and the weights assigned in your specific portfolio? Completely describe your process.

3.3.2 How were the individual assets selected over other assets in the same general asset class? Completely describe your process.

3.4 In a bad year, defined as the worst year in 20 years, how much would you expect your specific portfolio to lose?

3.5 In a normal year, how much would you expect your specific portfolio to make?

3.6 Explain your selling strategy of the assets in your specific portfolio:

3.6.1 When do you sell?

3.6.2 What turnover of assets is normal for your strategy?

4 Trading

4.1 Explain the order flow process after a decision is made to buy or sell. Why have your chosen the vendors you use?

4.2 Explain any trading costs involved in your structure.

4.3 How do you trade for customers other than us when they are competing for the same underlying asset? How are trades allocated between competing client accounts?

4.4 Provide information regarding compliance with regulatory and/or legal requirement, code of ethics and best execution.

4.5 Do you cross trade? If yes, explain the firm policy.

4.6 Do you or the firm trade for proprietary accounts (including firm, firm retirement, or family and friend accounts)? If yes, how are trades allocated to these accounts?

4.7 Is the firm ever the opposing principal of a trade? If yes, explain the pricing of these trades.

4.8 Completely explain how the trading desk might be compensated to assist in the trading of the Tribe’s account.

5 Benchmarks

5.1 What are reasonable benchmarks for your portfolios? Explain the reasoning behind your benchmarks.

5.2 Over what period can you deliver to us your actual past returns versus these benchmarks?

5.2.1 Are your returns certified?

5.2.2 Are your returns GIPS compliant?

5.2.3 If possible, provide returns in a table with calendar years as the rows, and 5 columns, Q1, Q2, Q3, Q4, and calendar year for both your actual historical portfolio, and another table for your benchmark, for the last 10 years. Note that this should be for your actual portfolio returns, of portfolios of similar risk profiles, and not the proposed portfolio of selected assets. [If you have split the minors trust into a 15 and under portfolio and 16 and over portfolio, you may have multiple tables].

5.2.4 Also state the return of your portfolio and benchmark for the last 1,3,5 and 10 year returns as of the last quarter end.

5.2.5 Explain any significance variance between your actual portfolio returns and your chosen benchmark.

6 Explain all fees involved in your services.

6.1 Separate out the direct management fees and the direct trustee fees. As we have not provided the fund asset amounts, you may elect to provide this in a schedule based upon asset size, as a flat fee, or by commission.

6.1.1 Are the fees for 1099s included in the trustee fees? If not, specify here.

6.2 If your management provides for the hiring of outside funds, e.g., mutual funds or exchange traded funds, provide an estimate of the costs of these outside managers separately in this section.

6.2.1 Note here if the mutual funds you may be hiring are or might be a related entity. Explain.

6.3 In this section, provide the types of additional compensation that your firm may receive because of this contract:

6.3.1 12b1 fees or revenue shares from other investments. Yes or no. If other investments, specify.

6.3.2 Commissions. Yes or no. If yes, specify.

6.3.3 Compensation for order flow. Yes or no. If yes, specify.

6.3.4 Mark-ups or mark-downs. Yes or no. If yes, specify. Other trading desk profits. Yes or no. If yes, specify.

6.3.5 Platform fees. Yes of no. If yes, specify.

6.3.6 Soft Dollars. Yes or no. If yes, specify.

6.3.7 Other compensation. Specify.

6.4 Are there additional fees for investment policy guideline analysis, or rebates if we decline this service?

6.5 Is travel to the Tribe included with these fees, if so, how may visits per calendar year? If this service is declined, is there a rebate in fees?

6.6 Do you provide any training to either the Minors or the Tribe? If so, explain here. If this service is declined, is there a rebate in fees?

6.7 Is any other service you provide an additional fee, if so, state here.

6.8 Is declining a service a possible rebate, if so, state here.

7 Reporting

7.1 Do you supply rates of returns of your performance?

7.1.1 With what frequency do you report these returns?

7.1.2 Describe your methodology.

7.1.3 Is it GIPS compliant?

7.2 Per what frequency are statements sent to Tribal Council, and what information is contained therein?

7.2.1 Please provide a sample, if available.

7.2.2 Is this information available online, and with what frequency is it updated?

7.2.3 In the event of a question by the Tribal Council, what is your availability to answer that question? Who would do that and how (phone/email)?

7.3 Per what frequency are statements sent to Minors, and what information is contained therein?

7.3.1 Please provide a sample, if available.

7.3.2 Is this information available online, and with what frequency is it updated?

7.3.3 In the event of a question by a Minor, what is your availability to answer that question? Who would do that and how (phone/email)?

7.4 Pricing

7.4.1 From where do you get the pricing for our statements?

7.4.2 If the source of the pricing changes, how will the Tribe be notified?

7.4.3 Is it permissible for “manager marks” to be used on your statements? If so, describe the procedure of how a “manager mark” would be used in your statement. How would we be notified if “manager marks” were used on a statement?

8 Distributions

8.1 Explain the process by which a Minor would make a request for a one-time emergency distribution.

8.1.1 Is the process any different for the removal of funds for when a minor becomes of age?

8.2 How long does it normally take from the initiation of a distribution process until the arrival of funds?

9 Compliance

9.1 Regulators

9.1.1 Does your firm have a regulator, if so, whom?

9.1.2 Are you registered with FINRA and/or the SEC?

9.2 How does compliance operate at your firm?

9.2.1 Does your firm have a chief compliance officer (CCO)? Does it have a compliance division? Is the CCO a full-time position?

9.2.2 Who is the CCO and state their qualification and time in that position? If less than 5 years, who was the previous CCO and why did they leave?

9.3 Disclosures

9.3.1 How many disclosures does your firm report?

9.3.2 How many disclosures does your team report?

9.4 Conflicts of interest

9.4.1 State any conflicts of interest in managing these accounts.

10 Native Involvement

10.1 Are you a Native American owned firm, if so what percentage?

10.2 Do you attend Native American conferences, if so, list here in the last 5-years?

11 References.

11.1 Provide a list of up to five client references applicable to this RFP whom we can contact. Include the name, title, address, e-mail, phone number, and the time they have been utilizing your services. Please specify if the reference is concerning a minor’s trust account.

12 Why should we hire you?

12.1 What sets your firm apart from other firms?

12.2 What sets your team apart from other teams at your firm?

12.3 Is there anything else about you that you would like to bring to our attention?

13 Special Terms

13.1 Do you agree that if hired, that the Tribe may terminate the contract with you at any time for any reason without cause? If no, please specify terms.

13.2 Do you agree that if hired, other than increasing because the assets increase and compensation is based upon asset size, the compensation rate eventually negotiated will not increase for a period of three years? If no, please specify.

13.3 A current trend in the industry is to give an account 10 calendar days from notice of a trade to protest a trade, or in the alternative the trade is automatically assumed suitable. Do you agree that if hired, all such clauses will be removed from our contract? If no, please specify why.

13.4 Do you agree that your contract will specify that you are a fiduciary to the Tribe? If no, please specify why.

14 Moving Forward:

14.1 May the Tribe’s consultant contact you if we would like clarification of this application? If yes, please provide the desired contact liaison and contact information here.

14.2 If selected, we may like to interview a few applicants via in person meeting and/or recorded Zoom before making our final selection. Please provide contact information to set up this meeting if you are selected.

14.3 No submissions will be returned and will become the property of the Tribe. Any information marked as proprietary or confidential will be held in confidence to the greatest extent possible.

14.4 The Tribe shall not be responsible for any costs associated with preparing and/or submitting a proposal in response to this RFP, in any manner or for any reason.

14.5 The Tribe may:

14.5.1 Modify or otherwise alter any or all of the requirements herein. In the event of a modification, applicants will be given an equal opportunity to modify their proposals in writing.

14.5.2 Reject any proposal not adhering to the requirements set forth within this RFP either in whole or in part.

14.5.3 Reject any or all proposals received.

14.5.4 Terminate this RFP at any time, without reason.

14.6 If an agreement is awarded, all terms and conditions herein shall be incorporated into the award along with the applicant’s proposal. Any change to the agreement must be through a written amendment agreed upon by both Parties.

14.7 All subcontractors must be disclosed and approved in your proposal. Compensation of subcontractors is the responsibility of the applicant.

14.8 Nothing in this RFP shall be considered a waiver of the Tribe’s sovereign immunity.

14.9 If a contract is awarded by the Tribe, no explanation will be given to parties that were not awarded the contract.