(a)

1. (1) The Treasurer of State may contract for professional services as necessary for the efficient management of investments.

2. (2) Services may include, but are not limited to:

   1. (A) Master custodian; and
   2. (B) Money manager.

(b) Master custodian.

1. (1) The Treasurer of State may select one (1) or more firms to provide the state with master custodial services pursuant to a custodial services agreement.

2. (2) Master custodial services will include, but not be limited to:

   1. (A) Executing transactions involving all securities held in custody, including:

(i) Online security clearing;

1. (ii) Settlement of securities on a delivery-versus-payment basis; and

   1. (iii) Settlement of physically held securities;
   2. (B) Accounting for all transactions in accordance with generally accepted accounting principles and requirements of the state;
   3. (C) Providing regular reports on the activity and value of the securities in custody; and

   4. (D) Providing for the safekeeping of all documents and financial instruments physically held in custody.

      1. (c) Money manager.
2. (1) The Treasurer of State may select one (1) or more firms to provide money management services.

3. (2) These services may include, but not be limited to:

   1. (A) Recommending changes to the investment policy;
   2. (B) Providing advice on investment purchases and sales based on current market indicators and economic conditions;
   3. (C) Providing monthly accounting, performance, compliance, and management reports; and

   4. (D) Managing funds separately from other governmental funds and providing third-party safekeeping in Treasurer of State’s name.

      1. (d)
4. (1) The services of a master custodian and money manager will be obtained through a competitive evaluation of proposals submitted to the Treasurer of State’s office.
5. (2) The money manager’s advice on investment purchases and sales must be limited to approved investments as defined above.