Investment Management Tender

Investment Management Tender

Provision of investment management services for global emerging market equities.

UK-Edinburgh: pension investment services

2012/S 90-148612

Contract notice

Services

Directive 2004/18/EC

Section I: Contracting authority

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

City of Edinburgh Council
Waverley Court, 4 East Market Street
Contact point(s): Corporate Governance
For the attention of: Paul Bell
EH8 8BG Edinburgh
UNITED KINGDOM
Telephone: +44 1314694569
E-mail: paul.bell@edinburgh.gov.uk

Internet address(es):

General address of the contracting authority: http://www.edinburgh.gov.uk

Address of the buyer profile: http://www.publiccontractsscotland.gov.uk/search/Search_AuthProfile.aspx?ID=AA00290

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: City of Edinburgh Council
Waverley Court, 4 East Market Street
Contact point(s): Corporate Governance
For the attention of: Supplier Support
EH8 8BG Edinburgh
UNITED KINGDOM
Telephone: +44 1314693823
E-mail: supplier.support@edinburgh.gov.uk
Internet address: http://www.edinburgh.gov.uk

Tenders or requests to participate must be sent to: City of Edinburgh Council
Waverley Court, 4 East Market Street
Contact point(s): Corporate Governance
For the attention of: Supplier Support
EH8 8BG Edinburgh
UNITED KINGDOM
Telephone: +44 1314693823
E-mail: supplier.support@edinburgh.gov.uk
Internet address: http://www.edinburgh.gov.uk

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:

Provision of investment management services for global emerging market equities.
II.1.2)Type of contract and location of works, place of delivery or of performance

Services
Service category No 6: Financial servicesa)Insurances services b)Banking and investment services
Main site or location of works, place of delivery or of performance: Edinburgh.
NUTS code UKM25

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: 10
Duration of the framework agreement

Duration in years: 10
Justification for a framework agreement, the duration of which exceeds four years: The framework will be for 10 years; this is the norm in the investment industry – as performance is measured against rolling 3 or 5 year periods.

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

The City of Edinburgh Council on behalf of Lothian Pension Fund is seeking to appoint Investment Managers to a framework arrangement to provide investment services for global emerging market equities.
The managers will be expected to manage an unconstrained long-only portfolio consisting of equities and cash only with a performance target of 3.0 % per annum over rolling 5 year periods above a broad equity benchmark of global emerging market stocks.
Please see pre-qualification documentation for full information.
The Authority expects to appoint 3 or more managers to a framework in respect of the services to be provided but reserves the right as to whether or not such appointment is made in consequence of this invitation to tender or otherwise. The intention is for one investment manager to provide the service initially. During the lifetime of the framework, the services of the other Managers may be utilised.
Note: to register your interest in this notice and obtain any additional information please visit the Public Contracts Scotland web site at http://www.publiccontractsscotland.gov.uk/Search/Search_Switch.aspx?ID=227564.

II.1.6)Common procurement vocabulary (CPV)

66131100

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: 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:

Approximately 6 % of the assets of Lothian Pension Fund (equivalent to approximately 200 000 000 GBP).
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: 120 (from the award of the contract)

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: yes
Description of particular conditions: The Managers must be members of Financial Services Authority, or equivalent European regulatory body.
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: (1) All candidates will be required to produce a certificate or declaration demonstrating that they are not bankrupt or the subject of an administration order, are not being wound-up, have not granted a trust deed, are not the subject of a petition presented for sequestration of their estate, have not had a receiver, manager or administrator appointed and are not otherwise apparently insolvent;
(2) All candidates will be required to produce a certificate or declaration demonstrating that the candidate, their directors, or any other person who has powers of representation, decision or control of the candidate has not been convicted of conspiracy, corruption, bribery, or money laundering. Failure to provide such a declaration will result in the candidate being declared ineligible and they will not be selected to participate in this procurement process;
(3) All candidates will be required to produce a certificate or declaration demonstrating that they have not been convicted of a criminal offence relating to the conduct of their business or profession;
(4) All candidates will be required to produce a certificate or declaration demonstrating that they have not committed an act of grave misconduct in the course of their business or profession;
(5) All candidates must comply with the requirements of the State in which they are established, regarding registration on the professional or trade register;
(6) Any candidate found to be guilty of serious misrepresentation in providing any information required, may be declared ineligible and not selected to continue with this procurement process;
(7) All candidates will have to demonstrate that they are licensed, or a member of the relevant organisation, in the State where they are established, when the law of that State prohibits the provision of the services, described in this notice, by a person who is not so licensed or who is not a member of the relevant organisation;
(8) All candidates will be required to produce a certificate or declaration demonstrating that they have fulfilled obligations relating to the payment of social security contributions under the law of any part of the United Kingdom or of the relevant State in which the candidate is established;
(9) All candidates will be required to produce a certificate or declaration demonstrating that they have fulfilled obligations relating to the payment of taxes under the law of any part of the United Kingdom or of the relevant State in which the economic operator is established.
III.2.2)Economic and financial ability

Information and formalities necessary for evaluating if the requirements are met: (1) All candidates will be required to provide a reference from their bank;
(2) All candidates will be required to provide evidence of relevant professional risk indemnity insurance;
(3) All candidates will be required to provide a statement, covering the 3 previous financial years including the overall turnover of the candidate and the turnover in respect of the activities which are of a similar type to the subject matter of this notice.
(4) All candidates will be required to provide statements of accounts or extracts from those accounts relating to their business.
III.2.3)Technical capacity

Information and formalities necessary for evaluating if the requirements are met:
(1) A statement of the candidate’s average annual number of staff and managerial staff over the previous 3 years;
(2) Details of the educational and professional qualifications of their managerial staff; and those of the person(s) who would be responsible for providing the services or carrying out the work or works under the contract;
(3) A statement of the principal goods sold or services provided by the supplier or the services provider in the past 3 years, detailing the dates on which the goods were sold or the services provided; the consideration received; the identity of the person to whom the goods were sold or the services were provided;
(4) A check may be carried out by the contracting authority or by a competent official body of the State in which the candidate is established, to verify the technical capacity of the candidate; and if relevant, on the candidates study and research facilities and quality control measures;
(5) An indication of the proportion of the contract which the services provider intends possibly to subcontract.
Minimum level(s) of standards possibly required:
— 10 year benchmarked performance record,
— Details of regulatory body membership,
— Decision-making process/policy.
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: Tenderers must be skilled and experienced investment advisors, suitably qualified and regulated to pan-European standards.
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 10: and maximum number 20
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:

3718/PB
IV.3.2)Previous publication(s) concerning the same contract
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: 31.5.2012
IV.3.4)Time limit for receipt of tenders or requests to participate

7.6.2012 – 12:00
IV.3.5)Date of dispatch of invitations to tender or to participate to selected candidates

29.6.2012
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 tenders

Section VI: Complementary information

VI.1)Information about recurrence

This is a recurrent procurement: yes
Estimated timing for further notices to be published: 114 months
VI.2)Information about European Union funds
VI.3)Additional information

(SC Ref:227564).
VI.4)Procedures for appeal
VI.4.1)Body responsible for appeal procedures
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:

8.5.2012