Request for Proposal for Investment Management Service

Concepts

• deposit services
• cranleigh
• cranleigh parish council
• investment management service
• investment banking
• review of its investment strategy
• low risk investments
• investment management business
• investment of funds
• approved investment policy

Location

Description

Cranleigh Parish Council has recently carried out a review of its Investment Strategy. It has changed the terms to reflect a need to address the issues of poor yield from short notice, low risk investments. Inflation is eroding the value of reserves and forcing the Council into a position whereby it cannot meet its commitment to the achieve sustainable Yield, which forms one of the three core pillars of public finance: the others being Security and Liquidity. We are now seeking an investment management business who can help us manage the Council's capital to offset the effects of the rising inflation. Scope of Services The firm selected will be required to provide the following services: 1. Investment of Funds The firm must effectively invest the Cranleigh Parish Council's funds, providing discretionary investment management services, pursuant to the approved investment policy and cash flow needs. 2. Written and Oral Reports In line with regulatory requirements, the firm must provide a written report, as required, on a monthly basis demonstrating the portfolio performance and the current information about the portfolio, as described in the investment policy. The firm must also be available to make periodic oral reports to the Council. 3. Evaluation of Investment Policy The firm must annually assist in the review of the Cranleigh Parish Council's investment policy. The proposed changes to the investment policy will be presented in final draft form to the Cranleigh Parish Council Finance Committee prior to submission to the full Council. Proposal Requirements For the purposes of quoting for this service, it is important to know that the Parish Council has funds of circa £500,000 across all categories of reserves, but currently invests £200,000 of this on low interest-bearing deposit accounts. The Council will pursue a strategy to maximise the reserves in interest or capital growth-based instruments according to a the principles of a set of attached terms of reference. However for the purposes of this Request For Proposal, the Council's priorities are, in the following ranking order: (i) The security of capital to minimise the risk of losses. (ii) The liquidity of investments to meet the cash flow needs of the Council. (iii) Maximising income within the framework of the national economic situation. The Council will aim to achieve a high rate of return on investments commensurate with adequate safeguards of security and liquidity. The Department for Communities and Local Government maintains the borrowing of money purely to invest or to lend and make a return is unlawful and the Council will not engage in such activity. Finally the Parish Council seeks an ethical investment approach, ideally with a focus on sustainable investments. All proposals must be received by the Parish Council Clerk by 5.00pm on Friday 10 March 2023 by email to clerk@cranleigh-pc.gov.uk

CPV Codes

• 66112000 - Deposit services
• 66120000 - Investment banking services and related services
• 66140000 - Portfolio management services
• 66151000 - Financial market operational services
• 66171000 - Financial consultancy services

Indicators

• Contract is suitable for SMEs.

Other Information

Investment Strategy http://cranleigh-pc.gov.uk/_UserFiles/Files/Policies and Other Documents/Investment Strategy 2022.pdf Invitation to quote for Investment Management Services Request for Proposal January 2023.pdf