Investment Risk System and Climate Risk Data Services

Tender description

Local Pensions Partnership Investments ("LPPI") requires an Investment Risk System to develop best practice internally and externally with regards to reporting and decision support and the provision of relevant security/asset climate change data and tools to assist LPPI to comply with the IIGCC Asset Manager Net Zero Framework and the Task Force on Climate-related Financial Disclosures (TCFD). Lot 1: LPPI requires an Investment Risk System to develop best practice internally and externally with regards to reporting and decision support and the provision of relevant security/asset climate change data and tools to assist LPPI to comply with the IIGCC Asset Manager Net Zero Framework and the Task Force on Climate-related Financial Disclosures (TCFD). The contract has been awarded to MSCI under regulation 32(2)(b)(ii) of the Public Contracts Regulations 2015 because competition is absent for technical reasons. LPPI considers MSCI to be the only provider that is able to meet all of LPPI's minimum requirements, which include but are not limited to an Investment Risk System that: 1. provides coverage for all of LPPI's asset classes, including private assets (without simply proxying to public market instruments) and compatibility with Barra's Real Estate Portal; 2. has a liquidity model, that can provide liquidity ladders and also is compliant with ESM Liquidity Stress Testing requirements; 3. provides AIFMD reporting as a managed service, driven by the positions loaded into the Risk system; 4. provides exposure reporting for all asset classes; 5. has the ability to add an unlimited amount of user data and categorisations to positions; 6. has the ability to create user defined, calculated metrics for reporting purposes; 7. has all three types of VaR model (Parametric, Historical and Monte-Carlo) and can incorporate fat tails into the VaR methodology; 8. provides stress testing of: a. historical scenarios b. hypothetical scenarios (correlated and uncorrelated) 9. subject to licencing, has the ability to load all of LPPI's fund risk and performance benchmarks; and 10. can represent the LPPI fund view as well as the client view including their balance sheet assets; and 11. can support climate change data and tools that effectively work alongside risk management data and tools.