Banking and investment services

Tender description

Following a review of the strategy for its long term investment portfolio, the University of Birmingham has decided to appoint a number of specialist equity managers for the portfolio, including a UK equity income and a global equity income manager. In total, the University's long term investment portfolio was valued at close to 100 000 000 GBP at the end of December 2014. The portfolio is, however, expected to grow steadily over time as the University has an active fund raising campaign under-way. It is the current intention to invest between 20-30 % of the overall portfolio on a specialist basis in UK equities and a similar amount in global equities, although the initial investment will likely be smaller than this as the portfolio is moved gradually from a passive to an actively managed basis. Depending on the quality of submissions, it is possible that more than 1 manager might be appointed in each area. The specialist UK equity income manager would be expected to outperform the FTSE All Share Index by at least 1 % p.a. net of fees on a rolling 3 year basis while generating an above average income. Similarly, the global equity income manager would be expected to outperform the MSCI AC World Index by 1 % net of fees while generating an above average income. A high and growing income is considered an important objective for the portfolio as it is largely made up of endowment funds. Overall, the portfolio has a formal income yield objective of 3,5 %, as well as a minimum long term total return target of RPI inflation + 4 % p.a. Potential managers of the portfolio would be expected to invest in-line with best practice in terms of corporate governance and socially responsible investment. The University does not allow direct investment in tobacco related stocks in a segregated portfolio. This restriction does not, however, apply to investments within fund vehicles. The University places a premium on the service it receives from its suppliers and the managers of the long term portfolio would be expected to provide a high quality of service and develop a close working relationship with the University. Potential managers of the portfolio would also be expected to have considerable experience of dealing with Universities and managing money for foundations and endowments.