Contract award notice
Results of the procurement procedure
Section I: Contracting
entity
I.1) Name and addresses
Wirral Borough Council
Wallasey Town Hall, Brighton Street
Wallasey
CH44 8ED
UK
Telephone: +44 1516062002
E-mail: tenders@wirral.gov.uk
NUTS: UKD74
Internet address(es)
Main address: http://www.wirral.gov.uk/
Address of the buyer profile: http://www.wirral.gov.uk/
I.2) Joint procurement
The contract is awarded by a central purchasing body
I.4) Type of the contracting authority
Regional or local authority
I.5) Main activity
General public services
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
Equity Overlay / Downside Risk Management
Reference number: DN645549
II.1.2) Main CPV code
66000000
II.1.3) Type of contract
Services
II.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
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
7 236 000.00
GBP
II.2) Description
II.2.3) Place of performance
NUTS code:
UKD74
II.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
II.2.5) Award criteria
Quality criterion: Quality (Written ITT)
/ Weighting: 60
Quality criterion: Quality (Presentation)
/ Weighting: 20
Price
/ Weighting:
20
II.2.11) Information about options
Options:
No
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Competitive procedure with negotiation
IV.1.3) Information about a framework agreement or a dynamic purchasing system
The procurement involves the establishment of a framework agreement
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
Yes
IV.2) Administrative information
IV.2.1) Previous publication concerning this procedure
Notice number in the OJ S:
2022/S 000-035897
Section V: Award of contract
Contract No: DN645549
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
30/09/2023
V.2.2) Information about tenders
Number of tenders received: 10
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Allianz Global Investors
199 Bishopsgate London
Greater London
EC2M 3TY
UK
NUTS: UKD74
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 7 236 000.00
GBP
V.2.5) Information about subcontracting
Section V: Award of contract
Contract No: DN645549
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
30/09/2023
V.2.2) Information about tenders
Number of tenders received: 10
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
AXA Investment Manager
7 Newgate Street
Greater London
EC1A 7NX
UK
NUTS: UKD74
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 7 236 000.00
GBP
V.2.5) Information about subcontracting
Section V: Award of contract
Contract No: DN645549
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
30/09/2023
V.2.2) Information about tenders
Number of tenders received: 10
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Insight Investment Management
160 Queen Victoria Street
London
EC4V 4LA
UK
NUTS: UKD74
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 7 236 000.00
GBP
V.2.5) Information about subcontracting
Section V: Award of contract
Contract No: DN645549
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
30/09/2023
V.2.2) Information about tenders
Number of tenders received: 10
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Morgan Stanley Investment Management
25 Cabot Square
London
E14 4QA
UK
NUTS: UKD74
The contractor is an SME:
Yes
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 7 236 000.00
GBP
V.2.5) Information about subcontracting
Section V: Award of contract
Contract No: DN645549
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
30/09/2023
V.2.2) Information about tenders
Number of tenders received: 10
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Schroder Investment Management Limited
1 London Wall Place
Greater London
EC2Y 5AU
UK
NUTS: UKD74
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 7 236 000.00
GBP
V.2.5) Information about subcontracting
Section VI: Complementary information
VI.4) Procedures for review
VI.4.1) Review body
Royal Courts of Justice
London
WC2A 2LL
UK
VI.5) Date of dispatch of this notice
22/11/2023