EU solidarity with Ukraine
Prozorro+: Ukrainian public procurement platform
Denmark-Frederiksberg: Pension fund management services
Section I: Contracting authority
Section II: Object
LD Pensions’ tender for an Agreement Concerning Investment Management of SMART BETA for Kapitalforening LD
The object of the tender is to find an Investment Manager to handle LD Pensions’ assets within Multi-factor, high capacity, Smart Beta global equities, including provision of Ancillary services such as delivery of completion advice, and analysis of the factor exposure of LD Pensions’ current and potential future single- and multi-manager equity portfolios.
The size of the mandate covered by this contract notice is indicative due to LD Pensions’ inability to determine the volume in advance. The value of the contract is therefore LD Pensions’ best estimate.
This mandate is long only, and has 2 objectives:
— Deliver long-term exposure to well-rewarded equity factors (risk premia) via investment in a high capacity, Multi-factor strategy (ongoing portfolio management). The Investment Universe is Global, including Emerging Markets. The Product must be provided as a segregated mandate, and Portfolio Construction must be tailored to the needs of LD Pensions by incorporating LD Pensions’ Exclusion List, Tracking Error and other restrictions.
— Delivery of Ancillary Services concerning analyses of LD Pensions’ current and potential future Single- and Multi-manager equity portfolios, using the same factor definitions employed in the Smart Beta mandate.
The size of the mandate covered by this Contract Notice is indicative due to LD Pensions’ inability to determine the volume in advance. It is important that the product has a minimum of 2 billion EUR available capacity at the time of signing the Agreement.
2 x 12 months
Evaluation of each Reference is based on three criteria
(1) Client resemblance to LD Pensions
(2) Project characteristics
(3) Capabilities, experience, and demonstrated outcomes
For each Reference a maximum of 25 points can be awarded. Thus, in total, Applicants can be awarded a maximum of 75 points.
Regarding criterion (1): References concerning clients which resemble LD Pensions in terms of size (same or larger) are preferred, references concerning clients that are unaffiliated to the Applicant are preferred.
Regarding criterion (2): References concerning clients with long duration relationships with the Applicant in Smart Beta mandates are preferred. References with mandates of a similar (or larger) volume as the LD Pensions' volume are preferred. References regarding client relationships in Smart Beta mandates that have not been terminated or expired are preferred.
Regarding criterion (3)
For all three references: References using the traditional academically tested factors are preferred. References regarding projects that have resulted in reviewed academic articles, books or other academic literature are preferred.
For References 1 and 2: References concerning global all country strategies (including emerging markets) will be preferred over global developed strategies. References with client directed customization regarding Portfolio Construction are preferred. References where the outcome was long term positive alpha generation and favorable risk/return vs. the relevant benchmark are preferred.
For Reference 3: Preference for more than one methodology employed. References where completion advice was provided will be preferred; references demonstrating ability to advise on multi-manager portfolios will be preferred. References with client directed customization are preferred. References where the Ancillary Service led to a direct positive effect on the client's total portfolio return/risk vs. relevant benchmark are preferred.
If 2 or more Applicants are awarded the same total score, the Applicant with the highest score regarding the criterion “Firm Capabilities, Experience and Outcomes” will be favored. If two or more Applicants are still awarded the same score, the Applicant with the highest score regarding the criterion “Project characteristics” will be favored. If two or more Applicants are still awarded the same score, the Applicant with the highest score regarding the criterion “Client resemblance to LD Pensions” will be favored. If two or more Applicants are still awarded the same score, LD Pensions will draw lots.
Section III: Legal, economic, financial and technical information
LD Pensions has the following economic minimum requirement: Company Assets Under Management in Smart Beta equity products (Single- and Multi-factor) as of 30.6.2019 was above 3.6 billion EUR or 4 billion USD.
If implementation of the Smart Beta Quantitative Process is executed by a separate entity to the entity developing and providing the Smart Beta Quantitative Process (a consortium or supporting entity/subcontractor), the Assets Under Management requirement concerns the entity developing and providing the Smart Beta Quantitative Process.
In the Application (Appendix 6, Prequalification Questionnaire) the Applicant must include three comparable and relevant References in essay form. A Reference is a description of a current or recent project or mandate which the Applicant has delivered to a client and demonstrates the Applicant’s ability to fulfill the requirements of this tender.
Below please find a description of the required and permitted content of each Reference:
— Reference 1: Reference concerning previous experience, capabilities and results within global Multi-factor, high capacity, Smart Beta equity portfolio management
— Reference 2: Reference concerning previous experience, capabilities and results within global Multi-factor, high capacity, Smart Beta equity portfolio management
— Reference 3: Reference concerning previous experience, capabilities and results within decomposition of active return of equity strategies, identification and quantification of current and historic factor exposures, and completion advice. The factor definitions must be those employed in References 1 and 2. More than one methodology may have been employed (for example both returns-based and holdings-based).
The purpose of the References is to present the Applicant’s capabilities, previous experiences and results from handling similar clients with similar objectives as LD Pensions.
Section IV: Procedure
Section VI: Complementary information
In accordance with Act no. 953 2.6.2016 (Lov om klagenævnet for Udbud m.v.), the deadlines for submitting a complaint are the following:
Complaints about a candidate not being selected must be filed within 20 calendar days starting the day after the contracting authority sent notification to the candidates involved, cf. section 171 of the Danish Public Procurement Act, provided that the notification includes a short account of the relevant reasons of the decision.
Complaints about the award procedure must be lodged with the Danish Complaints Board for Public Procurement before the expiry of:
1) 45 calendar days after the contracting authority has published a notice in the official Journal of the European Union (with effect form the day following the publication date)
2) 30 calendar days from the day following the day on which the contracting authority has informed the tenderers that the contracting authority have entered into a contract based on a framework agreement with reopening of competition or a dynamic purchasing system if the notification includes a sort account of the relevant reasons for the decision.
3) 6 months after the contracting authority has signed a framework agreement from the day following the day that the contracting authority has notified the tenderers, cf. section 2, 2) of the Act or section 171, 4) of the Danish Public Procurement Act.
4) 20 calendar days form the day after the day the contracting authority has announced its decision see section 185, 2) of the Danish Public Procurement Act.
The complainant must inform the contracting authority of the complaint in writing and not later than simultaneously with the lodging of the complaint to the Danish Board of Public Procurement. The complaint must state whether the complaint was lodged in the stand still period. If the complaint has not been lodged in the stand still period, the complaint must also state whether the complaint is requested to be given suspensive effect.