Section one: Contracting authority
one.1) Name and addresses
Wirral Borough Council
Wallasey Town Hall, Brighton Street
Wallasey
CH44 8ED
Telephone
+44 1516062002
Country
United Kingdom
Region code
UKD74 - Wirral
Internet address(es)
Main address
Buyer's address
one.2) Information about joint procurement
The contract is awarded by a central purchasing body
one.4) Type of the contracting authority
Regional or local authority
one.5) Main activity
General public services
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Equity Overlay / Downside Risk Management
Reference number
DN645549
two.1.2) Main CPV code
- 66000000 - Financial and insurance services
two.1.3) Type of contract
Services
two.1.4) Short description
The Local Government Pension Scheme (LGPS) is a national scheme administered on a local
basis by Wirral Council as the administering authority for the Northern LGPS.
The Fund is governed by the Superannuation Act 1972 and the Public Services Pensions Act
2013. The Fund is administered in accordance with the following secondary legislation:
- the LGPS Regulations 2013 (as amended)
- the LGPS (Transitional Provisions, Savings and Amendment) regulations 2014 (as
amended)
- The Occupational and Personal Pension Scheme (Administration) Regulations 2008
- the LGPS (Management and Investment of Funds) Regulations 2016
- the Public Services Pensions (Information about Benefits) Directions 2014.
Northern LGPS is a partnership between the Greater Manchester (GMPF), Merseyside
(MPF) and West Yorkshire (WYPF) Local Government Pension Scheme (LGPS) funds.
Formerly known as 'Northern Pool', it is one of Britain’s largest public investment funds, with combined assets under management of £46bn. Northern LGPS represents about a fifth of
total LGPS assets, has approximately 880,000 members and over 1,100 contributing
employers.
Northern LGPS’s purpose is to ensure the assets of its funds perform effectively so that
members receive a pension that enables them to enjoy their retirement in dignity.
3. Scope of the opportunity
Northern LGPS is seeking to control equity risk on a medium-term basis and possibly on a
longer-term strategic basis through the use of an equity overlay solution(s).
Northern LGPS is looking to renew its framework of approved equity overlay suppliers to
offer overlay management services as required during the framework duration. It is
anticipated that mandates will be awarded on an individual basis to suppliers within this
framework as required by the underlying plans.
Suppliers must be able to offer equity risk / drawdown control through a broad range of
overlay solutions ranging from basic put / put-spread protection through to more complex
strategies (as required by individual awards within the framework), and may also be required
to offer mechanisms for funding (e.g. synthetic equity replication or other funding routes).
The approved supplier framework will target a minimum of 3 manager appointments.
Northern LGPS are seeking proposals from asset managers. Bank or other non-fiduciary
solutions will be excluded.
Suppliers must be able to implement solutions using their own trading relationships.
Proposals requiring use of client ISDAs will be excluded.
Suppliers must be regulated to offer services to UK institutional investors.
It is estimated that the Northern LGPS will seek to deploy Equity Risk Overlay mandates on
up to GBP 3bn initially. This figure represents the client's total equity exposure that might be
referenced by overlay proposals.
Individual mandates within the framework are expected to vary in sizes ranging from GBP
100m to GBP 2bn, with the framework expected to deploy multiple overlay solutions over
time. There is also the potential for aggregate mandate size to grow through the
incorporation of other asset classes over time.
Subject to there being a sufficient number of responses meeting the selection criteria,
Northern LGPS will select the 10 top scored qualified suppliers to be invited to tender.
Once the framework has been awarded, each individual Fund will run their own further
competition between the successful suppliers on the framework when each individual
requirement arises.
The overall estimate contract spend of £7,236,000 is the estimated spend over the life time of the framework and it is unknown how much will be awarded to each supplier as this will be determined by each further competitions when an individual need arises
two.1.6) Information about lots
This contract is divided into lots: No
two.1.7) Total value of the procurement (excluding VAT)
Value excluding VAT: £7,236,000
two.2) Description
two.2.3) Place of performance
NUTS codes
- UKD74 - Wirral
two.2.4) Description of the procurement
The Local Government Pension Scheme (LGPS) is a national scheme administered on a local
basis by Wirral Council as the administering authority for the Northern LGPS.
The Fund is governed by the Superannuation Act 1972 and the Public Services Pensions Act
2013. The Fund is administered in accordance with the following secondary legislation:
- the LGPS Regulations 2013 (as amended)
- the LGPS (Transitional Provisions, Savings and Amendment) regulations 2014 (as
amended)
- The Occupational and Personal Pension Scheme (Administration) Regulations 2008
- the LGPS (Management and Investment of Funds) Regulations 2016
- the Public Services Pensions (Information about Benefits) Directions 2014.
Northern LGPS is a partnership between the Greater Manchester (GMPF), Merseyside
(MPF) and West Yorkshire (WYPF) Local Government Pension Scheme (LGPS) funds.
Formerly known as 'Northern Pool', it is one of Britain’s largest public investment funds, with combined assets under management of £46bn. Northern LGPS represents about a fifth of
total LGPS assets, has approximately 880,000 members and over 1,100 contributing
employers.
Northern LGPS’s purpose is to ensure the assets of its funds perform effectively so that
members receive a pension that enables them to enjoy their retirement in dignity.
3. Scope of the opportunity
Northern LGPS is seeking to control equity risk on a medium-term basis and possibly on a
longer-term strategic basis through the use of an equity overlay solution(s).
Northern LGPS is looking to renew its framework of approved equity overlay suppliers to
offer overlay management services as required during the framework duration. It is
anticipated that mandates will be awarded on an individual basis to suppliers within this
framework as required by the underlying plans.
Suppliers must be able to offer equity risk / drawdown control through a broad range of
overlay solutions ranging from basic put / put-spread protection through to more complex
strategies (as required by individual awards within the framework), and may also be required
to offer mechanisms for funding (e.g. synthetic equity replication or other funding routes).
The approved supplier framework will target a minimum of 3 manager appointments.
Northern LGPS are seeking proposals from asset managers. Bank or other non-fiduciary
solutions will be excluded.
Suppliers must be able to implement solutions using their own trading relationships.
Proposals requiring use of client ISDAs will be excluded.
Suppliers must be regulated to offer services to UK institutional investors.
It is estimated that the Northern LGPS will seek to deploy Equity Risk Overlay mandates on
up to GBP 3bn initially. This figure represents the client's total equity exposure that might be
referenced by overlay proposals.
Individual mandates within the framework are expected to vary in sizes ranging from GBP
100m to GBP 2bn, with the framework expected to deploy multiple overlay solutions over
time. There is also the potential for aggregate mandate size to grow through the
incorporation of other asset classes over time.
Subject to there being a sufficient number of responses meeting the selection criteria,
Northern LGPS will select the 10 top scored qualified suppliers to be invited to tender.
Once the framework has been awarded, each individual Fund will run their own further
competition between the successful suppliers on the framework when each individual
requirement arises
The overall estimate contract spend of £7,236,000 is the estimated spend over the life time of the framework and it is unknown how much will be awarded to each supplier as this will be determined by each further competitions when an individual need arises
two.2.5) Award criteria
Quality criterion - Name: Quality (Written ITT) / Weighting: 60
Quality criterion - Name: Quality (Presentation) / Weighting: 20
Price - Weighting: 20
two.2.11) Information about options
Options: No
two.2.13) Information about European Union Funds
The procurement is related to a project and/or programme financed by European Union funds: No
Section four. Procedure
four.1) Description
four.1.1) Type of procedure
Competitive procedure with negotiation
four.1.3) Information about a framework agreement or a dynamic purchasing system
The procurement involves the establishment of a framework agreement
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: Yes
four.2) Administrative information
four.2.1) Previous publication concerning this procedure
Notice number: 2022/S 000-035897
Section five. Award of contract
Contract No
DN645549
A contract/lot is awarded: Yes
five.2) Award of contract
five.2.1) Date of conclusion of the contract
30 September 2023
five.2.2) Information about tenders
Number of tenders received: 10
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor
Allianz Global Investors
199 Bishopsgate London
Greater London
EC2M 3TY
Country
United Kingdom
NUTS code
- UKD74 - Wirral
The contractor is an SME
No
five.2.4) Information on value of contract/lot (excluding VAT)
Total value of the contract/lot: £7,236,000
Section five. Award of contract
Contract No
DN645549
A contract/lot is awarded: Yes
five.2) Award of contract
five.2.1) Date of conclusion of the contract
30 September 2023
five.2.2) Information about tenders
Number of tenders received: 10
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor
AXA Investment Manager
7 Newgate Street
Greater London
EC1A 7NX
Country
United Kingdom
NUTS code
- UKD74 - Wirral
The contractor is an SME
No
five.2.4) Information on value of contract/lot (excluding VAT)
Total value of the contract/lot: £7,236,000
Section five. Award of contract
Contract No
DN645549
A contract/lot is awarded: Yes
five.2) Award of contract
five.2.1) Date of conclusion of the contract
30 September 2023
five.2.2) Information about tenders
Number of tenders received: 10
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor
Insight Investment Management
160 Queen Victoria Street
London
EC4V 4LA
Country
United Kingdom
NUTS code
- UKD74 - Wirral
The contractor is an SME
No
five.2.4) Information on value of contract/lot (excluding VAT)
Total value of the contract/lot: £7,236,000
Section five. Award of contract
Contract No
DN645549
A contract/lot is awarded: Yes
five.2) Award of contract
five.2.1) Date of conclusion of the contract
30 September 2023
five.2.2) Information about tenders
Number of tenders received: 10
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor
Morgan Stanley Investment Management
25 Cabot Square
London
E14 4QA
Country
United Kingdom
NUTS code
- UKD74 - Wirral
The contractor is an SME
Yes
five.2.4) Information on value of contract/lot (excluding VAT)
Total value of the contract/lot: £7,236,000
Section five. Award of contract
Contract No
DN645549
A contract/lot is awarded: Yes
five.2) Award of contract
five.2.1) Date of conclusion of the contract
30 September 2023
five.2.2) Information about tenders
Number of tenders received: 10
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor
Schroder Investment Management Limited
1 London Wall Place
Greater London
EC2Y 5AU
Country
United Kingdom
NUTS code
- UKD74 - Wirral
The contractor is an SME
No
five.2.4) Information on value of contract/lot (excluding VAT)
Total value of the contract/lot: £7,236,000
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
Royal Courts of Justice
London
WC2A 2LL
Country
United Kingdom