REQUEST FOR PROPOSAL FOR THE SELECTION OF AN INVESTMENT ADVISOR

Transcription

1 REQUEST FOR PROPOSAL FOR THE SELECTION OF AN INVESTMENT ADVISOR LAKEHEAD UNIVERSITY 955 OLIVER ROAD THUNDER BAY, ONTARIO CANADA P7B 5E1 RFP # LU Investment Advisor DATE OF ISSUE: Tuesday, January 5, 2016 Cut Off for Questions: Friday, January 22nd, 2016 CLOSE DATE & TIME: Friday, February 12th, 3:00:00 PM Local Time

2 SECTION 1: PURPOSE AND CONTENT Introduction This request for proposal is issued with the objective of soliciting proposals from qualified investment advisors of demonstrated professional competence and experience to perform pension advisory services for Lakehead University. The term of the intended contract will be for five (5) years from June 30, 2016 to June 30, 2021 with the opportunity for renewal for one (1) subsequent three (3) year period, and one (1) subsequent two (2) year period, upon mutual agreement of both parties. Pension Plan Plan Description Lakehead University provides pension benefits to its employees through 2 separate pension plans; Pension Plan for Professional Staff, a hybrid plan, and the Lakehead University Employee Pension Plan (LUEPP), a defined contribution plan. Both plans are administered by Lakehead University, under the advisement of two committees. The Pension Board (the Board) advises the Administrator in regards to the Professional Plan, and the Advisory Committee (the Committee) advises the Administrator in regards to the LUEPP. Copies of the plans text can be found on the Lakehead University web site, on the Pension Services page: Plan Assets As at December 31, 2014 the market value of the two plans assets were: Professional Plan - $186.7M LUEPP - $ 35.6M The plans are invested through the Pension Fund, a Master Trust under the custodial care of the Northern Trust Company. The following investment managers currently manage the assets: Addenda CGOV Dimensional Fund Advisors Jarislowsky Fraser Letko Brosseau & Associates State Street Global Advisors RFP #LU Lakehead University 2

3 Statement of Investment Policies and Procedures The University revised its Statement of Investment Policies and Procedures (SIPP) in June of 2014, which is included in Appendix I of the RFP. The Statement identifies the key factors bearing upon investment decisions for the Plan and provides a set of written guidelines for the management of its assets as well as identifying the roles and responsibilities of those accountable for the administration of the Plans. In addition the SIPP articulates the investment objectives, investment management guidelines, the risk tolerance and the investment constraints. The asset mix targets and limits are specified in the SIPP. Scope of Requirement The expectation is that the investment advisor will be highly experienced, a leader and innovator in the management of pension plans, and be able to provide comprehensive investment and policy advice in the administration of the Plans. Respondents to the RFP are requested to submit proposals to provide the services described as follows: On an annual basis, or more frequently if required, review the SIPP with the Board and Committee and provide advice on re-approving or amending it. Provide education and advice on best practices, governance and compliance to the Board and Committee. Monitor the Plans to ensure compliance with the SIPP and notify the Board and Committee if the Plans are offside in any area at any time. Monitor asset allocations and provide recommendations to the Board and Committee with respect to rebalancing assets among investment managers and/or asset classes. Monitor investment managers' compliance with the Statement and with any specialized instructions and mandates provided them. Provide proactive information and advice with respect to developments that might affect the investment manager(s)' performance, risk characteristics and service capabilities. Manage the process when an asset allocation or investment manager change is made, including moving assets so that market timing and transaction costs are minimized, documentation is completed and the transition is successfully completed. RFP #LU Lakehead University 3

4 Provide quarterly reports to and meet with the Board and Committee to review these reports that should include: o Performance on the aggregate Plans in addition to each investment manager, against the appropriate market benchmarks; o Comparative analysis of each investment manager's performance related to their peers within the appropriate investment manager universes; o Recommendations for rebalancing of assets between investment managers and/or asset classes to maintain the stated asset allocation ranges; o A qualitative assessment of each engaged investment manager to reconfirm maintenance or to support an investment manager change; o Member communications including an annual report. Be an independent and objective resource for all questions or issues concerning administration, custody, managers, specialty mandates, market conditions and related topics pertinent to the Plans and be available to attend any meeting of the Board and Committee if requested; and Exercise the care, skill and diligence that can reasonably be expected of a prudent expert and adhere to the CFA Institute's Code of Ethics and Standards of Professional Conduct. Manage the process to acquire/renew/cancel services, including investment manager(s) and/or custodian(s) on behalf of the Board and Committee. Provide additional reporting on trends, new developments and market issues for the education of the members of the Board and Committee as required. Provide a secure web based portal with differing levels of access for plan members, Administrators, and Pension Board and Advisory Committee members. RFP #LU Lakehead University 4

5 SECTION 2: EVALUATION AND AWARD Evaluation Criteria Any selection of a preferred consultant will be based on the evaluation of the proposal as identified in this RFP. Should the University proceed with an award of a contract, the proposal with the lowest financial component will not necessarily receive the award. All proposals will be reviewed and ranked according to the criteria below. Respondents may be selected for interviews or oral presentations as deemed necessary. The following are the evaluation criteria and the information requested is a guideline only and should not be considered restrictive. Additional material, which is felt to be relevant to the submission, should also be included. Qualification and Experience 1. The Proponent should provide a convincing statement of qualifications for the firm; (20 Points) Year founded as a current corporate entity Permanent office address Ownership, management and organization of the firm and if during the last three years these have undergone any major changes please describe Experience in working with post-secondary organizations, or other organizations, and in particular experience in developing investment policies and portfolio management guidelines for pension funds Experience in overseeing investment managers, custodians and other pension plan agents 2. Individual and Team Qualifications and Experience; (20 Points) The Proponent should clearly identify, and provide evidence of, the expertise of the Team Leader assigned to the Lakehead University for this contract As well, the individuals who will be working with the Lakehead staff in each of the different areas. These should include their roles, involvement and the extent of the time devoted to Lakehead Identify the direct experience that staff has had working with investment managers that enables them to provide a broad institutional perspective A list of current or past clients to which comparable services were provided including client name, client contact (current name, title and phone number), number of years working for client and, if past client, reason why no longer a client RFP #LU Lakehead University 5

6 Approach 1. Advising the Client; (25 Points) Proponents should briefly describe the process that their firm would undertake to determine the best asset mix for the University's Pensions What are the primary strategies employed by your firm for adding value to portfolios (i.e. market timing, credit research, etc.) Describe your firm's research capabilities and resources 2. Reports and Analysis; (25 Points) Proponents should describe the types of reporting and analysis their firm provides on investment performance at the portfolio, asset class and fund levels. Can the components of the portfolio be aggregated or disaggregated for any time period requested? Provide the number of business days required to complete quarter-end reports Discuss your performance attribution as it relates to individual portfolios, each asset class (Canadian equity, global equity, fixed income, and other) and the total fund Describe how your firm provides value beyond the provision of raw data. If your firm utilizes proprietary quantitative modes to perform analysis please identify this Outline your process for analyzing a client's investment portfolio structure Describe your process for recommending modifications to the portfolio structure Fee proposal document length limit to 40 pages plus appendices Financial Fees 1. Fees; (10 Points) Proponents will provide a flat dollar fee or a percentage of Assets of the plan for the items listed under Scope of Requirements, not including HST. This fee will apply to year one of the contract. Should proponents want to apply different fees to the subsequent years of the initial agreement, these may be quoted either as a percentage increase or a fixed fee. Prices offered within proponent submissions shall be firm against any increase for one year from the effective date of the contract. Should the renewal option noted above be pursued, the fees and/or pricing shall be established for the renewal period within six months of the expiry of the initial term, and shall be fixed upon mutual agreement between the parties. RFP #LU Lakehead University 6

7 SECTION 3: INSTRUCTIONS TO BIDDERS Payment Terms Proponents will note that the University s standard accounting cycle is Net 30 on a quarterly basis (for any agreement resulting from this RFP), with an itemized invoice, detailing all applicable expenses and taxes. Termination or Cancellation Should this solicitation result in the formation of a contract, either party may cancel the agreement upon the giving of 60 days written notice to the other party. The parties confirm that this notice provision is fair and reasonable and the parties agree that upon any cancellation of the contract by the University, the Investment Manager shall have no action, cause of action, claim or demand against the University or any other person as a consequence of such cancellation. Indemnification The successful Bidder shall indemnify Lakehead University for all damage suffered by it as a result of the negligent actions or wrongful acts of the successful Proponent, its employees, servants and/or agents. The successful Proponent shall indemnify and hold harmless Lakehead University, its Board of Governors, students, employees, servants and/or agents from all claims, demands, losses, costs, damages, actions, suits, or proceedings initiated by third parties arising from the negligence of the successful Proponent, its employees, servants, and/or agents. General Liability Insurance The successful Bidder must carry general liability insurance with a limit of not less than $5,000,000 inclusive per occurrence for bodily injury (including death), and damage to property including the loss of the use thereof. Such insurance shall include coverage for broad form property damage, contractual liability, completed operations and product liability, and non-owned automobile liability and such other types of insurance, as would be carried by a prudent person and as Lakehead University may from time to time require. Lakehead University shall be named as an additional insured on the policy, but only with respect to the operations of the successful Bidder. Invoices shall be accompanied by a Workplace Safety and Insurance Board Clearance Certificate and a Statutory Declaration certifying that monies have been appropriately distributed. RFP #LU Lakehead University 7

8 Bid Submission Proposals MUST be received in the Lakehead University Purchasing Department, located in the Braun Building, Room # BB-1002A, Before 3:00:00 PM Local Time, on: FRIDAY, FEBRUARY 12th, 2016 In a sealed package clearly marked: RFP # LU Investment Advisor. Address Submissions to: Geoffrey Matte Manager, Purchasing and Contracts Braun Building, Room BB-1002A Lakehead University 955 Oliver Road, Thunder Bay, Ontario, P7B 5E1 Proposals received after the above closing time and date cannot be considered and will be returned to the bidder at the bidder s expense. Four (4) copies of the bid submission are required, plus one (1) additional copy in electronic format, either on compact disc media, or a data stick. Lakehead University accepts no responsibility or liability for misdirected, unreadable, incomplete bids or electronic mail questions and it is the sole responsibility of the bidder to ensure their bids and have been received by the authorized representative of the University in a timely manner. Proposal documents must be completed in accordance with the requirements of the Request for Proposal documents and no amendment or change to proposals will be accepted after the closing date and time. Proposal documents can be no more than 40 pages long, not including appendices. There are no limitations on appendices. Proposals shall be originally signed by an authorized signatory of the bidder. If the bidder is an incorporated company, the corporate seal of the bidder shall be affixed or a certified true copy of a resolution of the corporation naming the person(s) in question as authorized to sign agreements on behalf of the corporation shall be attached to the proposal. Bidders who are sole proprietorships or partners shall sign their bid in such a way as to irrevocably bind the bidder in an authorized manner. RFP #LU Lakehead University 8

9 All questions regarding this Request for Proposal must be submitted in writing (fax, mail or only) by 4:00 pm local time on Friday, January 22nd, Address questions to; Geoffrey Matte Manager, Purchasing & Contracts Room BB-1002A LAKEHEAD UNIVERSITY 955 OLIVER ROAD THUNDER BAY, ONTARIO P7B 5E1 Telephone: Fax: Should the question be considered relevant to all bidders, the University will respond with both the question and the written answer, and will post these in the form of an Addenda in the same manner and location as the original solicitation. No Addenda will be issued after Monday, February 1st, Proponents are solely responsible for ensuring the University has a contact name, a valid address, a current mailing address, and telephone and fax numbers on file. In the event any Proponent cannot comply with any term, condition, or requirement of this Request for Proposal, such non-compliance must be clearly noted on the Proponent's letterhead and submitted with the proposal. Proponents are cautioned that such non-compliance may result in the disqualification of their proposal. No allowance will be made for un-noted non-compliance of any kind by any Proponent. No other representative of the University is to be contacted regarding this Request for Proposal. The University accepts no responsibility for, and Proponents agree not to rely upon any verbal or written statements, or representations, from any other person, whether or not employed by the University. While the University will not consider more than one bid submission from any Proponent under the same or different names, the University is prepared to consider, in addition to the original submission, alternative submission submitted within the same package providing such are clearly marked as alternatives. Proponents are cautioned that proposals will be solely evaluated upon the disclosed evaluation criteria and no linkage of offers to donations, scholarships or similar arrangements will be considered. RFP #LU Lakehead University 9

10 The laws of the Province of Ontario shall apply to this Request for Proposal and any contract formed as a result of this Request for Proposal and the Courts of Ontario shall have exclusive jurisdiction over any contract formed as a result of this Request for Proposal. Lakehead University's name, logo, crest, or other brand identifiers shall not be used without the prior written consent of the University. Lakehead University intends to award a contract to the Proponent whose proposal offers the best value to the University. However, the University is under no obligation to award any contract in whole or in part, and the University reserves the right to cancel this Request for Proposal process at any time before or after closing, without providing reasons for such cancellation. The evaluation process may include requests for Proponents to provide a presentation and system demonstration. Any award made by the University shall be made in writing and shall be subject to the availability of funding at the time of award (if any). In the event of mathematical errors in extension of prices or other ambiguities, unit prices shall govern over total bid prices and words shall govern over numbers. In order to obtain the most advantageous offer for the University, the University reserves the right to: a) waive minor irregularities and / or minor non-compliance by any Proponent to the requirements of this Request for Proposal b) request clarification and or further information from one or more Proponents after closing without becoming obligated to offer the same opportunity to all Proponents c) enter into negotiations with one or more Proponents without being obligated to negotiate with, or, offer the same opportunity to, all Proponents Proponents are advised, however, to submit a complete offer as their submission. Any waiver, clarification or negotiation will not be considered as an opportunity for Proponents to correct errors or revise their submissions. The University shall not be responsible for any expenses or costs incurred by a Proponent in preparing or submitting a proposal, nor in providing any additional information considered necessary by the University for the evaluation of a proposal. RFP #LU Lakehead University 10

11 The University reserves the right to amend this Request for Proposal at any time prior to close of bidding and Proponents are cautioned to ensure they have reviewed and understood all addenda (if any) prior to submitting a proposal. The successful Proponent (if any) may not assign or subcontract the awarded contract without the prior written consent of the University. Proponent submissions shall be open for acceptance by the university for a period of sixty (60) days following close. Lakehead University reserves the right to accept any proposal, and to reject any or all proposals. Lakehead University will issue a purchase order to the selected Proponent that will serve as a formal agreement between these parties for performance of the required work. The following policies are in effect on Lakehead University premises and all personnel performing work on these premises are required to observe their provisions: 1. Smoking on University Premises; 2. Harassment and Discrimination Policy and Procedures; 3. Lakehead University Traffic & Parking Regulations; Copies of these policies may be reviewed at the Physical Plant office, or on their web page: For parking requirements other than short- term stops for delivery of materials, obtain and pay for parking permits in accordance with Lakehead University regulations. The University and the successful proponent (if any) acknowledge and agree that they are independent contractors in a contract for goods and/or services and no employer - employee, partnership nor agency relationship is intended or created by their agreement. Notwithstanding the above, while at Lakehead University, personnel of the successful bidder (if any) must observe all regulations and policies of the University including parking and traffic regulations. Vehicles shall be parked in areas, at the successful bidder's (if any) expense, as directed by the Security Manager. END OF RFP RFP #LU Lakehead University 11