Request for Proposal:

Provision of Full fund Administration Services

14 May 2021

Administrative Briefing Session

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▪ Welcome and Opening – Khanyiso

▪ About the Fund - Prince/Thandeka

▪ Scope of work – Prince/Thandeka

▪ Timelines – Khanyiso

▪ RFP Response & Fee Structure – Khanyiso

▪ Disqualifying criteria – Khanyiso

▪ Questions:Team

Agenda

▪ Self Administered Defined Benefit Pension Fund

▪ Largest Financial Sector Conduct Authority (FSCA) regulated retirement fund

in South Africa

▪ Active members (June 2020)

▪ Pensioners membership (June 2020)

▪ Head Office Bryanston, satellite offices Emalahleni, Durban, Bellville and East

London with around 120 permanent employees;

▪ Core business activities are Pension Fund Administration (RFO) and

Investment Management Unit (IMU) with support functions including Finance,

HR, IT, Risk and Compliance and Legal and Corp Sec

▪ Current approximately R144 .5 Billion assets under management (June 2020)

About the Fund

41 915 33 146

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Scope of Work

Full Fund Administration services for in-house portfolios (All asset

types)

• Transaction Processing services

• Order management

• Trade processing – trade capturing various asset classes.

• Trade Confirmation, matching and settlements

• Reconciliation of portfolios

• Asset Transitions – take-on and terminations

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Scope of Work

Fund Accounting and Replication Services(All asset types)

Full Replication service which should, amongst others, include as a

minimum the following;

• Data Provision, transactional, position and static data;

• Processing of corporate events

• Security Valuations.

• Reconciliations Services

• Fund Accounting Services

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Scope of Work

• Reporting Service – The fund administrator must provide audited and

unaudited daily and monthly accounting data, valuation, returns,

reporting. These will include the periodic standard industry reporting incl.

Regulatory reporting SARD D427, B16, K48 Reg28 etc.

• Technology services – Access to various investment administration

platforms flexible and user-friendly web-based technology platform that

is fully integrated with the counting and performance/risk platform

• Client services – a relationship manager who oversees EPPF supported

by a client service manager and subject matter experts.

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Scope of Work

Compliance Support services (All asset types)

• Monitoring relevant legislation

• Monitoring mandate rules

• Pre-trade compliance

• Post-trade compliance

• Portfolio Analytics Data (Performance Measurement and Attribution Analysis) (All asset types)

• Provide monthly audited/ quality-controlled performance reports based on accounting data

and delivered within the agreed reporting deadlines. The returns shall be calculated on a

gross and net of fee basis and the reporting format is based on EPPF’s specifications.

• Provide audited transactions and holdings data for importing onto a third-party

performance measurement system. In a format specified by EPPF within the agreed

reporting deadlines.

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Scope of Work

Investment Management

System integration with the portfolio management system, in this case BPM, where we can

directly send trades to a trading platform after conducting optimisation, pr/e-trade analytics,

rebalancing, etc

User friendly cash management where we can easily see cash forecasts, settlements, funds

available to trade in one place without having to navigate many windows.

Rebalancing feature

Should give warnings regarding cash holdings, embargoes at pre-trade phase.

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Scope of Work

One that allows for a customised benchmark and ease of changing it should a future need arise.

Other Requirements

Ability to accommodate a multi-fund capability (DC & DB Fund); unitisation capability.

ESG Impact investing monitoring and reporting

Software Licensing (Unconditional) – 17 users

• All Fund Administration services mentioned above).

• Implementation (Once – Off)

✓ Installation (if applicable) of software and licences (and other, if applicable)

• Training (Once-Off)

✓ 17 key stakeholders

• Current system Information

✓ Data to be migrated from the current system to the new system.

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Timelines

RFP

Timeline RF

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--------------- RFP Process ----------------

07-1

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14 M

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May 2021

Estimated contract start date – July 2021

The Fund will only be able to provide formal communication to bidders, once the overall

evaluation and approval process has been concluded, this includes actual approval by the

Procurement Committee and/ or any other relevant Board Committee/s.

June 2021

Briefing S

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31 M

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18 M

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21 M

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25 J

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Cut-

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Pre

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Clo

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18 J

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Please note

The Fund reserves the right to withdraw, at any stage of this

process, amend or cancel this RFP, reject or not accept any or all

proposals

All queries must be submitted in writing only and responses to queries

or points of clarity will be on the Fund’s website. Electronic email

address for queries is ProcurementOffice@eppf.co.za

Proposals received by any other means other than communicated will

not be considered and will be rendered invalid;

Respondents are to make sure that their RFP response are

electronically submitted to the above-mentioned email address by

16h00 South African time on the 31 May 2021.

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Evaluation Criteria

Emphasis will be on;

▪ Functional Ability (65%)

▪ Pricing (20%)

▪ B-BBEE (10%)

▪ COPIA Compliance (5%)

Shortlisted respondents will be provided with detailed information for the second

stage of the selection process.

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RFP Response

▪ Proposals must be electronically generated and signed by the individual(s)

legally authorised to bind the respondent (Signed RFP document,

acceptance of terms and conditions), Contract terms and conditions to be

negotiated with a successful Bidder;

▪ Respondents must, on the official letterhead of the company submitting the

response, declare that:

- the information provided in all documentation is true and correct; and

- the signatory of the tender document is duly authorised to do so.

▪ The electronic copies of the RFP proposal and/or examples of work must be

provided in Adobe Reader Portable Document Format (PDF), free of anyviruses or malicious ware;

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RFP Response (cont.)

The structure of the RFP response to include;

▪ Executive Summary of the Proposal

▪ Company Background and Track Record

▪ Proposed team members for the project and their credentials

▪ Proposed Services

▪ Key Deliverables

▪ Pricing Schedule

▪ References – SA (three references relating to services required to

be included)

▪ BBBEE Credentials

▪ Supporting Documents

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Supporting Documents

Mandatory/Compulsory Supporting documents;

• A detailed statement of the company’s B-BBEE credentials as required in the above,

supported by a rating certificate from a SANAS accredited rating institution or a B-BBEE

affidavit.

• Respondents must complete the EPPF POPIA Self Compliance Forms (EPPF Operator

Privacy Due Diligence Form and Operator Privacy Compliance Self-Assessment Form)

• Up-to-date full set of Audited Financial Statement of the specific entity that will be

submitting the proposal, and if successful, contracting with the Fund. Group or any other

entity’s Annual Financial Statements will not be accepted. Redacted or missing pages or

concealed sections will render the financial statements incomplete and will lead to

disqualification.

• In the case of a Joint Venture the above-mentioned documentation, with the exception of

the B-BBEE credentials, need only be supplied for the primary entity.

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Supporting Documents (Cont.).

Administrative Supporting Documents;

• Certified copies of CIPC company registration documentation. In the case of respondents

who are not companies as envisaged in the Companies Act of 2008, equivalent founding

documents must be submitted;

• A valid Tax Clearance Certificate and/or PIN indicating good standing with the South

African Revenue Services (SARS) or applicable revenue authority;

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Fee Structure

The fee and costs schedule must be complete as per below table;

All pricing must be inclusive of Value Added Tax (VAT)

No. Item descriptionPercentage (%) Price (ZAR) Incl

VAT

1 Fund Administration Fees per annum

2 Licensing (Unconditional)

3 Consultation fees where applicable

4 Development costs

5 Project management fees

6 Implementation (Once-Off)

7 Training (17 Key Stakeholders – Once Off)

8 Support and Maintenance Costs

9 Data Migration and Archiving

10 Other Costs if applicable

Total

Disqualifying criteria

Failure to meet the below;

▪ To submit on time as per the closing date and time

▪ Acceptance of the RFP terms and conditions (Page 22) – Contract

terms and condition shall be discussed and negotiated with the

successful Bidder.

▪ Compliance requirement: structure of responses (4.6.1 to 4.6.4)

▪ A minimum of five (5) years demonstrated experience in fund

administration services.

▪ EPPF POPIA Self Compliance Forms;

• EPPF Operator Privacy Due Diligence Form

• Operator Privacy Compliance Self-Assessment Form

Disqualifying criteria

Failure to meet the below;

▪ Declaration - formal letter

▪ A detailed statement of the company’s B-BBEE credentials as

required in the above, supported by a rating certificate from a

SANAS accredited rating institution or a B-BBEE affidavit.

▪ Complete set of recent Audited Annual Financial Statements of the

specific entity that will be submitting the proposal. Group or any

other entity’s Annual Financial Statements will not be accepted.

Respondents who are not required by law to have audited financial

statements must include a letter signed by an authorised official

confirming that the respondent is not required by law to have audited

financial statements and accordingly, is unable to provide the same.

Financial statements with missing pages or reduced/deleted portions

will lead to disqualification from the tender process.

Disqualifying criteria

NB - Please make use of the checklist to ensure that all minimum

requirements are met and to avoid being disqualified.

Also the presentation and the RFP document, to ensure all the required

documents are submitted.

Questions?

Electronic mail address for queries is

ProcurementOffice@eppf.co.za

Deadline for submission of queries is on 18 May 2021 at

16h00 SA Time.

Responses to queries or points of clarity will be updated on the

EPPF Website by 21 May 2021 at 16h00 SA Time.

Closing date for RFP submissions will be on 31 May 2021

at 16h00 SA Time.

Thank You