Section one: Contracting authority
one.1) Name and addresses
Wirral Borough Council
Wallasey Town Hall
Wallasey
CH44 8ED
Telephone
+44 1516062002
Fax
+44 1516063725
Country
United Kingdom
Region code
UKD74 - Wirral
Internet address(es)
Main address
Buyer's address
one.1) Name and addresses
West Yorkshire Pension Fund
Aldermanbury House
West Yorkshire
BD1 2ST
Country
United Kingdom
Region code
UKE4 - West Yorkshire
Internet address(es)
Main address
one.1) Name and addresses
Greater Manchester Pension Fund
Guardsman Tony Downes House
Manchester
M43 6SF
Country
United Kingdom
Region code
UKD3 - Greater Manchester
Internet address(es)
Main address
one.1) Name and addresses
Merseyside Pension Fund
Castle Chambers
Liverpool
L2 9SH
Country
United Kingdom
Region code
UKD72 - Liverpool
Internet address(es)
Main address
https://www.mpfmembers.org.uk/
one.2) Information about joint procurement
The contract involves joint procurement
one.3) Communication
The procurement documents are available for unrestricted and full direct access, free of charge, at
https://procontract.due-north.com
Additional information can be obtained from the above-mentioned address
Tenders or requests to participate must be submitted electronically via
https://procontract.due-north.com
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.
two.1.5) Estimated total value
Value excluding VAT: £7,236,000
two.1.6) Information about lots
This contract is divided into lots: No
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.
FOR ALL QUERIES, ACCESS TO DOCUMENTATION, EXPRESSIONS OF INTEREST, SUBMISSIONS PLEASE ACCESS VIA THE OPPORTUNITY ON THE CHEST PORTAL VIA http://www.the-chest.org.uk
two.2.5) Award criteria
Quality criterion - Name: Quality (Written ITT submission) / Weighting: 60
Quality criterion - Name: Quality (Presentation) / Weighting: 20
Price - Weighting: 20
two.2.6) Estimated value
Value excluding VAT: £7,236,000
two.2.7) Duration of the contract, framework agreement or dynamic purchasing system
Duration in months
48
This contract is subject to renewal
No
two.2.9) Information about the limits on the number of candidates to be invited
Envisaged number of candidates: 10
two.2.10) Information about variants
Variants will be accepted: No
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
two.2.14) Additional information
This tender is being conducted by the lead Authority Wirral Council for its own Pension Fund, namely Merseyside Pension Fund and also this framework will be ran for, and will include West Yorkshire Pension Fund and Greater Manchester Pension Fund
This will be in 2 stages Stage 1 SSQ - with a min of 10 top scored suppliers being put through to Stage 2 - the ITT stage.
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
Please refer to DN645549 for criteria of award for all stages
Please note due to Christmas Shut down between 5pm Friday 23rd December 2022 and 9am Tuesday 4th January 2023 no questions will be answered during this period.
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
Framework agreement with several operators
In the case of framework agreements, provide justification for any duration exceeding 4 years:
no maximum, but minimum of 3 - further competition as outlined in tender documentation
four.1.4) Information about reduction of the number of solutions or tenders during negotiation or dialogue
Recourse to staged procedure to gradually reduce the number of solutions to be discussed or tenders to be negotiated
four.1.5) Information about negotiation
The contracting authority reserves the right to award the contract on the basis of the initial tenders without conducting negotiations
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.2.2) Time limit for receipt of tenders or requests to participate
Date
20 January 2023
Local time
12:00pm
four.2.4) Languages in which tenders or requests to participate may be submitted
English
Section six. Complementary information
six.1) Information about recurrence
This is a recurrent procurement: No
six.4) Procedures for review
six.4.1) Review body
Royal Courts of Justice
London
WC2A 2LL
Country
United Kingdom