Tender Notice: Investment Manager for Specialist Equity

Tender Notice: Investment Manager for Specialist Equity

The University of Birmingham has decided to appoint a number of specialist equity managers for the portfolio, including a UK equity income and a global equity income manager.

United Kingdom-Birmingham: Banking and investment services

2015/S 085-152805

Contract notice

Services

Directive 2004/18/EC

Section I: Contracting authority

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

University of Birmingham
Edgbaston
Contact point(s): https://in-tendhost.co.uk/universityofbirmingham/aspx/Home
For the attention of: Jonathan Jones
B15 2TT Birmingham
UNITED KINGDOM
Telephone: +44 1214145955
E-mail: j.jones.3@bham.ac.uk
Fax: +44 1214143459

Internet address(es):

General address of the contracting authority: https://in-tendhost.co.uk/universityofbirmingham/aspx/Home

Address of the buyer profile: https://in-tendhost.co.uk/universityofbirmingham/aspx/Home

Further information can be obtained from: The above mentioned contact point(s)

Specifications and additional documents (including documents for competitive dialogue and a dynamic purchasing system) can be obtained from: The above mentioned contact point(s)

Tenders or requests to participate must be sent to: The above mentioned contact point(s)

I.2)Type of the contracting authority

Body governed by public law

I.3)Main activity

Education

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:

Investment Manager for Specialist Equity.

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 UKG31

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

The notice involves a public contract
II.1.4)Information on framework agreement

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

Following a review of the strategy for its long term investment portfolio, the University of Birmingham has decided to appoint a number of specialist equity managers for the portfolio, including a UK equity income and a global equity income manager.
In total, the University’s long term investment portfolio was valued at close to £100 million at the end of December 2014. The portfolio is, however, expected to grow steadily over time as the University has an active fund raising campaign underway.
It is the current intention to invest between 20-30 % of the overall portfolio on a specialist basis in UK equities and a similar amount in global equities, although the initial investment will likely be smaller than this as the portfolio is moved gradually from a passive to an actively managed basis. Depending on the quality of submissions, it is possible that more than one manager might be appointed in each area.
The specialist UK equity income manager would be expected to outperform the FTSE All Share Index by at least 1 % p.a. net of fees on a rolling three year basis while generating an above average income. Similarly, the global equity income manager would be expected to outperform the MSCI AC World Index by 1 % net of fees while generating an above average income.
A high and growing income is considered an important objective for the portfolio as it is largely made up of endowment funds. Overall, the portfolio has a formal income yield objective of 3.5 %, as well as a minimum long term total return target of RPI inflation + 4 % p.a.
Potential managers of the portfolio would be expected to invest in line with best practice in terms of corporate governance and socially responsible investment. The University does not allow direct investment in tobacco related stocks in a segregated portfolio. This restriction does not, however, apply to investments within fund vehicles.
The University places a premium on the service it receives from its suppliers and the managers of the long term portfolio would be expected to provide a high quality of service and develop a close working relationship with the University. Potential managers of the portfolio would also be expected to have considerable experience of dealing with Universities and managing money for foundations and endowments.

II.1.6)Common procurement vocabulary (CPV)

66100000, 66600000

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

The contract is covered by the Government Procurement Agreement (GPA): yes

II.1.8)Lots

This contract is divided into lots: yes
Tenders may be submitted for one or more lots

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:

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

Duration in months: 6 (from the award of the contract)

Information about lots

Lot No: 1Lot title: UK Equity Income Mandate

1)Short description

To arrange for new investment manager services for the University funds.

2)Common procurement vocabulary (CPV)

66110000, 66600000

3)Quantity or scope
4)Indication about different date for duration of contract or starting/completion
5)Additional information about lots

Lot No: 2Lot title: Global Equity Income Mandate

1)Short description

To arrange for new investment manager services for the University funds.

2)Common procurement vocabulary (CPV)

66110000, 66600000

3)Quantity or scope
4)Indication about different date for duration of contract or starting/completion
5)Additional information about lots

Section III: Legal, economic, financial and technical information

III.1)Conditions relating to the contract
III.1.1)Deposits and guarantees required:
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
III.2.2)Economic and financial ability
III.2.3)Technical capacity
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: no

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: no

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

IV.1.3)Reduction of the number of operators during the negotiation or dialogue

Recourse to staged procedure to gradually reduce the number of solutions to be discussed or tenders to be negotiated no
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:

SC2745/15

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: 29.5.2015 – 15:00
Payable documents: no

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

29.5.2015 – 15:00
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

Persons authorised to be present at the opening of tenders: yes
Additional information about authorised persons and opening procedure: Internal Audit acting as adjudicator.

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
VI.4)Procedures for appeal

VI.4.1)Body responsible for appeal procedures

University of Birmingham
Edgbaston
B15 2TT Birmingham
UNITED KINGDOM
E-mail: procurement@bham.ac.uk
Telephone: +44 1214145389
Internet address: https://in-tendhost.co.uk/universityofbirmingham/aspx/Home
Fax: +44 1214143459

VI.4.2)Lodging of appeals
VI.4.3)Service from which information about the lodging of appeals may be obtained

VI.5)Date of dispatch of this notice:

28.4.2015

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