GMPF Appointment of Securities Investment Manager

GMPF Appointment of Securities Investment Manager

GMPF Appointment of Securities Investment Manager – Global Credit.

United Kingdom-Ashton-under-Lyne: Pension fund management services

2015/S 085-152579

Contract notice

Services

Directive 2004/18/EC

Section I: Contracting authority

I.1)Name, addresses and contact point(s)

Tameside Metropolitan Borough Council as Administering Authority of the Greater Manchester Pension Fund (‘GMPF’)
Council Offices, Wellington Road
OL6 6DL Ashton-under-Lyne
UNITED KINGDOM

Internet address(es):

General address of the contracting authority: www.tameside.gov.uk

Address of the buyer profile: www.gmpf.org.uk

Electronic access to information: www.the-chest.org.uk

Electronic submission of tenders and requests to participate: www.the-chest.org.uk

Further information can be obtained from: Hymans Robertson LLP
20 Waterloo Street
G2 6DB Glasgow
UNITED KINGDOM
Telephone: +44 1415667848
E-mail: gmpfglobalcreditsearch@hymans.co.uk
Fax: +44 1415667788
Internet address: www.hymans.co.uk

Specifications and additional documents (including documents for competitive dialogue and a dynamic purchasing system) can be obtained from: NW Portal — The Chest
UNITED KINGDOM
Internet address: www.the-chest.org.ukContract9T5L-RBO29V

Tenders or requests to participate must be sent to: NW Portal — The Chest
UNITED KINGDOM
Internet address: www.the-chest.org.ukContract9T5L-RBO29V

I.2)Type of the contracting authority

Regional or local authority

I.3)Main activity

General public services

I.4)Contract award on behalf of other contracting authorities

The contracting authority is purchasing on behalf of other contracting authorities: no

Section II: Object of the contract

II.1)Description

II.1.1)Title attributed to the contract by the contracting authority:

GMPF Appointment of Securities Investment Manager – Global Credit.

II.1.2)Type of contract and location of works, place of delivery or of performance

Services
Service category No 6: Financial services a) Insurances services b) Banking and investment services

NUTS code UKD3

II.1.3)Information about a public contract, a framework agreement or a dynamic purchasing system (DPS)

The notice involves the establishment of a framework agreement

II.1.4)Information on framework agreement

Framework agreement with several operators
maximum number of participants to the framework agreement envisaged: 4

Duration of the framework agreement

Duration in years: 4

II.1.5)Short description of the contract or purchase(s)

GMPF is seeking to establish a Framework of active multi-credit managers. The managers must be capable of managing: either Mandate A and B, as mutually exclusive separate mandates; or Mandate A alone.
Mandate A:
A multi-credit mandate, with a target long-term return likely to be in the region of LIBOR plus 4 % – 6 % per annum measured over discrete 3 year periods. This mandate, which is expected to be in the region of 650 000 000 GBP, will seek to invest in higher yielding public credit opportunities (which can also extend to include those in relation to private placement markets). It is likely that a segregated approach will be the preferred solution for this mandate, although pooled solutions will be considered. The aim of this mandate is to generate meaningful absolute returns principally based on the income available from a diverse credit portfolio. Hedge fund solutions will not be considered. It is anticipated that the mandate will invest in multiple categories of higher yielding debt (i.e. we expect any exposure to lower yielding investment grade credit or government bond markets to be a function of ‘downside protection’ rather than for income generation). We expect currency to be hedged to Sterling and any interest rate (duration) risk to be minimal given the floating rate and short duration nature of much of the investment opportunity set. And;
Mandate B:
A higher quality credit oriented mandate, with a target return likely to be in the region of LIBOR plus 2 % per annum over discrete 3 year periods. For the purposes of this tender, you should assume an initial mandate size of around 100 000 000 GBP; however, this has the potential to significantly increase over time. The mandate is likely to invest in higher quality debt related investments (with an expected average credit rating of ‘A’), including potentially an element of investment grade buy and maintain credit. It is likely that a segregated approach will be the preferred solution for this mandate, although pooled solutions will be considered. The aim of this mandate is to build a portfolio of assets that can generate cashflows to form part of a liability cashflow matching strategy. It is anticipated that the mandate will invest in a number of shorter-dated credit related opportunities, including loans and high yield debt. Hedge fund solutions will not be considered. We expect currency to be hedged to Sterling and any interest rate (duration) risk to be minimal given the floating rate and short duration nature of much of the investment opportunity set.
Single or multiple mandates may be awarded concurrently or consecutively within the expected framework life of 4 years. Resulting mandates will be in the form of contracts of open duration but with a minimum period of 3 years and subject to triennial fee reviews. GMPF reserves the right to vary the size of mandates awarded.
GMPF has considered the requirements of the Social Value Act 2012 prior to issuing this Contract Notice.

II.1.6)Common procurement vocabulary (CPV)

66141000

II.1.7)Information about Government Procurement Agreement (GPA)

The contract is covered by the Government Procurement Agreement (GPA): no

II.1.8)Lots

This contract is divided into lots: no

II.1.9)Information about variants

Variants will be accepted: no
II.2)Quantity or scope of the contract

II.2.1)Total quantity or scope:

GMPF is seeking to establish a Framework of active multi-credit managers. The managers must be capable of managing: either Mandate A and B, as mutually exclusive separate mandates; or Mandate A alone.
Mandate A
A multi-credit mandate, with a target long-term return likely to be in the region of LIBOR plus 4 % – 6 % per annum measured over discrete 3 year periods. This mandate, which is expected to be in the region of 650 000 000 GBP, will seek to invest in higher yielding public credit opportunities (which can also extend to include those in relation to private placement markets). It is likely that a segregated approach will be the preferred solution for this mandate, although pooled solutions will be considered. The aim of this mandate is to generate meaningful absolute returns principally based on the income available from a diverse credit portfolio. Hedge fund solutions will not be considered. It is anticipated that the mandate will invest in multiple categories of higher yielding debt (i.e. we expect any exposure to lower yielding investment grade credit or government bond markets to be a function of “downside protection” rather than for income generation). We expect currency to be hedged to Sterling and any interest rate (duration) risk to be minimal given the floating rate and short duration nature of much of the investment opportunity set. And;
Mandate B
A higher quality credit oriented mandate, with a target return likely to be in the region of LIBOR plus 2 % per annum over discrete 3 year periods. For the purposes of this tender, you should assume an initial mandate size of around 100 000 000 GBP; however, this has the potential to significantly increase over time. The mandate is likely to invest in higher quality debt related investments (with an expected average credit rating of ‘A’), including potentially an element of investment grade buy and maintain credit. It is likely that a segregated approach will be the preferred solution for this mandate, although pooled solutions will be considered. The aim of this mandate is to build a portfolio of assets that can generate cashflows to form part of a liability cashflow matching strategy. It is anticipated that the mandate will invest in a number of shorter-dated credit related opportunities, including loans and high yield debt. Hedge fund solutions will not be considered. We expect currency to be hedged to Sterling and any interest rate (duration) risk to be minimal given the floating rate and short duration nature of much of the investment opportunity set.
Single or multiple mandates may be awarded concurrently or consecutively within the expected framework life of 4 years. Resulting mandates will be in the form of contracts of open duration but with a minimum period of 3 years and subject to triennial fee reviews. GMPF reserves the right to vary the size of mandates awarded.
GMPF has considered the requirements of the Social Value Act 2012 prior to issuing this Contract Notice.

II.2.2)Information about options

Options: no

II.2.3)Information about renewals

This contract is subject to renewal: no
II.3)Duration of the contract or time limit for completion

Section III: Legal, economic, financial and technical information

III.1)Conditions relating to the contract

III.1.1)Deposits and guarantees required:

Please refer to the PQQ.
III.1.2)Main financing conditions and payment arrangements and/or reference to the relevant provisions governing them:
III.1.3)Legal form to be taken by the group of economic operators to whom the contract is to be awarded:

III.1.4)Other particular conditions

The performance of the contract is subject to particular conditions: no
III.2)Conditions for participation

III.2.1)Personal situation of economic operators, including requirements relating to enrolment on professional or trade registers

Information and formalities necessary for evaluating if the requirements are met: Providers must be registered in terms of the UK Financial Services and Markets Act 2000, or equivalent law of the European Economic Area (EEA) member state to manage the assets of occupational pension schemes. Proof of registration must be provided. Providers must be able to comply with appropriate LGPS regulations.
III.2.2)Economic and financial ability

III.2.3)Technical capacity

Information and formalities necessary for evaluating if the requirements are met:
Providers should complete a Pre Qualifying Questionnaire (“PQQ”). Details on how to obtain the PQQ can be found in Annex A.
Minimum level(s) of standards possibly required:
Tenderers must provide satisfactory answers to the questions asked in the Council Questions section of the PQQ. Tenderers must have minimum debt assets of 7bn GBP and a minimum track record of returns for the multi-credit mandate (on actual invested assets) of 5 years.
III.2.4)Information about reserved contracts
III.3)Conditions specific to services contracts

III.3.1)Information about a particular profession

Execution of the service is reserved to a particular profession: yes
Reference to the relevant law, regulation or administrative provision: Providers must be registered in terms of the UK Financial Services and Markets Act 2000, or equivalent law of the European Economic Area (EEA) member state to manage the assets of occupational pension schemes. Proof of registration must be provided.

III.3.2)Staff responsible for the execution of the service

Legal persons should indicate the names and professional qualifications of the staff responsible for the execution of the service: yes

Section IV: Procedure

IV.1)Type of procedure

IV.1.1)Type of procedure

Restricted

IV.1.2)Limitations on the number of operators who will be invited to tender or to participate

Envisaged minimum number 3
IV.1.3)Reduction of the number of operators during the negotiation or dialogue
IV.2)Award criteria

IV.2.1)Award criteria

The most economically advantageous tender in terms of the criteria stated in the specifications, in the invitation to tender or to negotiate or in the descriptive document

IV.2.2)Information about electronic auction

An electronic auction will be used: no
IV.3)Administrative information
IV.3.1)File reference number attributed by the contracting authority:

IV.3.2)Previous publication(s) concerning the same contract

no

IV.3.3)Conditions for obtaining specifications and additional documents or descriptive document

Time limit for receipt of requests for documents or for accessing documents: 8.6.2015 – 10:00

IV.3.4)Time limit for receipt of tenders or requests to participate

8.6.2015 – 12:00
IV.3.5)Date of dispatch of invitations to tender or to participate to selected candidates

IV.3.6)Language(s) in which tenders or requests to participate may be drawn up

English.
IV.3.7)Minimum time frame during which the tenderer must maintain the tender
IV.3.8)Conditions for opening of tenders

Section VI: Complementary information

VI.1)Information about recurrence

This is a recurrent procurement: no

VI.2)Information about European Union funds

The contract is related to a project and/or programme financed by European Union funds: no

VI.3)Additional information

I.1) Name, addresses and contact point(s):
Contact point(s): See Annex A.
VI.4)Procedures for appeal
VI.4.1)Body responsible for appeal procedures

VI.4.2)Lodging of appeals

Precise information on deadline(s) for lodging appeals: As per the Public Contracts Regulations 2006.
VI.4.3)Service from which information about the lodging of appeals may be obtained

VI.5)Date of dispatch of this notice:

27.4.2015

Enjoyed this post? Share it!