Absolute Return Portfolio Review

Absolute Return Portfolio Review

The Council wishes to appoint, via a competitive tender, an investment consultant or other suitably qualified person or firm to undertake a thorough review of the Fund’s investments in this area.

Council:
Royal Borough of Windsor and Maidenhead
Category:
Consultancy
Financial
DATES
Planned Start Date:
21/05/2012
Planned End Date:
06/08/2012
Last Date for Expressing Interest:
24/04/2012
CONTRACT OPTIONS
OJEU Flag:
No
Open to Other Councils:
No
VALUE
Estimated Quantity:
1
Estimated Annual Value:
15,000
Estimated Total Contract Value:
15,000
COUNCIL CONTACT DETAILS
Name:
Nick Greenwood
Telephone Number:
01628 796701
Email:
nick.greenwood@rbwm.gov.uk
Department:
Royal County of Berkshire Pension Fund
KEYWORDS & NOTES DETAILS
Notes:
Background
The Royal County of Berkshire Pension Fund (“the Fund”) is administered by The Royal Borough of Windsor & Maidenhead (“the Council”). The Fund currently has an allocation of 18% (approximately £260 million) to absolute return funds.
The Council wishes to appoint, via a competitive tender, an investment consultant or other suitably qualified person or firm to undertake a thorough review of the Fund’s investments in this area.
Scope of Review
The appointed consultant will be required to prepare a report covering:
A) A fundamental review of the concept of “absolute return investing” including, but not limited to:
1) Is there such a thing as absolute return investing?
2) What is a suitable target return (the Fund is targeting a minimum return of 7.5% per annum across all of its investments)
3) What level of volatility should be acceptable to the Fund?
4)  Is it reasonable to expect capital preservation in times of market stress
B) A full review of the Fund’s investment in the Lyxor Focus Fund (performance data will be supplied by the Council to the appointed consultant)
C) A review of the Fund’s absolute return portfolio (details will be supplied to the appointed consultant but currently, besides the investment in Lyxor, the Fund has holdings in an insurance-linked securities fund, a CTA and a multi-asset long-only fund).

Interested parties should submit offers in writing to:
Nick Greenwood,

Pension Fund Manager,

Royal Borough of Windsor & Maidenhead,

Town Hall,

St Ives Road,

Maidenhead,

SL6 1RF
No later than 24 April 2012. All offers must state an all inclusive fee for the work proposed and include brief CV’s of the persons who will be responsible for producing the report and examples of reports on this subject matter (Absolute Return Funds and Hedge Funds) that have previously been produced – such report examples may be redacted with respect to client identity.
Interested parties can find further information about the Fund at www.berkshirepensions.org.uk

Any contract will be subject to the Council’s standard terms and conditions.