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INVITATION TO TENDER (ITT) FOR: High Alpha or Unconstrained Global Equities Investment Manager for Scottish Borders Council CONTRACT PERIOD: 2 nd June 2014 – 1 st June 2019 (with the option to renew annually for a maximum of 2 years)

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Page 1:  · Web viewINVITATION TO TENDER (ITT) FOR: High Alpha or Unconstrained Global Equities Investment Manager for . Scottish Borders Council. CONTRACT. PERIOD: 2. nd. June. 2014 –

INVITATION TO TENDER (ITT) FOR:

High Alpha or Unconstrained Global Equities Investment Manager for

Scottish Borders Council

CONTRACT PERIOD: 2nd June 2014 – 1st June 2019(with the option to renew annually for a maximum of 2 years)

Tender Reference: SBC/CPS/80512th March 2014

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INVITATION TO TENDER FOR: High Alpha or Unconstrained Global Equities Investment Manager

SBC REFERENCE: SCB/CPS/805

1. You are invited by Scottish Borders Council (SBC) to tender for the provision of High Alpha or Unconstrained Global Equities Investment Manager to the Council in terms of, and in accordance with this Invitation to Tender.

2. The Contract covers a period of 5 years activity to deliver this service from the 2nd June 2014 – 1st June 2019.

3. Your Tender must be submitted in accordance with this Invitation to Tender Letter, and in accordance with the following attached documents, all of which shall be deemed to form and to be read and to be construed as part of this Invitation to Tender:

3.1 This Invitation to Tender;

3.2 Schedule 1 - Instructions & Information for Tenderers;

3.3 Schedule 2 – Parties able to access and call from the Contract

3.4 Schedule 3 – Statement of Requirements

3.5 Schedule 4 – Information Relating to Staff Transfers (TUPE);

3.6 Schedule 5 – Monitoring Schedule;

3.7 Schedule 6 – Terms & Conditions;

3.8 Schedule 7 – Information to be Provided in the Tender Response;

3.9 Schedule 8 (a) – (b) – Form of Tender;

3.10 Schedule 9 – Pricing Schedule;

3.11 Schedule 10 - Parent Company Guarantee (or bond) (for tenderer completion where appropriate)

3.12 Schedule 11 – Freedom of Information Schedule; (for tenderer completion where appropriate)

3.13 Schedule 12 – Non-Collusion Tendering Certificate;

3.14 Appendix 1 – Scoring

3.15 Appendix 2 – Suppliers Tender Returns Checklist

4. Tenders must arrive not later than 2pm on Friday 18th April 2014.

4.1 Tenders must be submitted by hard copy and in English.

4.2 Tenders will not be opened until the date and time printed on it. Correspondence connected with the tender that requires attention before the above date should be

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sent in a separate envelope bearing no external reference to the tender number or return date and addressed to the undersigned.

4.3 It is the responsibility of all tenderers to ensure that their tender is delivered not later than the appointed time.

4.4 Tenders received after that time will not be considered.

5. SBC is not bound to accept the lowest or any tender.

6. Enquiries regarding this Invitation to Tender should be addressed to the undersigned at the above address.

Yours sincerely,

Ewan ForrestCategory ManagerCorporate Procurement Service

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Schedule 1INSTRUCTIONS & INFORMATION FOR TENDERERS

1 Disclaimer1.1 This Invitation to Tender is provided for information only.  No representation, warranty or

undertaking, express or implied, is or will be made and Scottish Borders Council shall have no responsibility or liability as to or in relation to the accuracy or completeness of this Invitation to Tender or any other written or oral information made available to any party responding to this Invitation to Tender (Tenderers) or their advisers.  No information contained in this Invitation to Tender will form the basis of any warranty or representation made by or on behalf of Scottish Borders Council to any Tenderer.

1.2 No response made by or on behalf of Scottish Borders Council to any response to this Invitation to Tender shall constitute an agreement or contract between Scottish Borders Council and any Tenderer unless expressly stated to that effect by Scottish Borders Council.

2 Scottish Borders Council2.1 Scotland is represented by 32 Local Authorities, 3 islands and 29 mainland unitary

councils, (often referred to as local government), of which Scottish Borders Council is one.  The thirty-two Councils provide a wide range of public services paid for from a combination of national grant-aid from HM Treasury, Council Tax payments from residents and other grant aid.  The members of the Councils are unpaid, but those with posts of special responsibility are paid allowances to enable them to undertake their duties.

2.2 The Scottish Borders area covers over 1,800 square miles with some of the most scenic countryside in Europe. Scottish Borders Council is made up of 34 Councillors, each of whom represent a single-member ward of approximately 2,500 electors.  Scottish Borders Council is currently organised into 4 departments. They are responsible for implementing the policies of the elected councillors. The departments are as follows: The Chief Executives Departments, Education and Lifelong Learning, Environment & Infrastructure and Social Work. Tenderers may be required to provide goods, services or works to Scottish Borders Council sites within any or all departments. Tenderers may be asked to state, within the context of the work being tendered, whether they can fulfil this requirement or whether a third party distributor may be used. A geographical map of the area provided below for information.

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3 Timetable3.1 Scottish Borders Council intends to follow the schedule below in performing the

evaluation and vendor selection process.  The timetable below identifies the indicative dates:

Activity Indicative Timescales Tenders Issued 12th March 2014Suppliers Deadline for asking Clarification/Queries

3p.m on the 4th April 2014

Tender Returns 2p.m on the 18th April 2014Contract Award 13th May 2014Contract Commencement 2nd June 2014

3.2 The timetable above is subject to change at Scottish Borders Council’s discretion.

3.3 In order to allow appropriate time for analysis, selection, implementation, and communication of the selected Tenderers, we request the co-operation of Tenderers in meeting all of the deadlines specified above.

3.4 Tenderers will be notified in writing by email whether any further actions will be required.

3.5 Scottish Borders Council will notify Tenderers, at the end of the tender process, whether or not they have been awarded a contract. A contract award notice will also be published at Public Contracts Scotland http://www.publiccontractsscotland.gov.uk/.

4 Submission of Tender4.1 Submissions should be uploaded electronically to: www.publiccontractsscotland.gov.uk

in advance of the Tender (ITT) deadline of the 18th April 2014 with a deadline of 2.00pm.

4.2 Tender submitted in advance of this deadline on the national portal will be securely held in the electronic vault and will only be able to be opened after the deadline has passed.

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4.3 Please be aware that the Procurement Scotland Portal has a maximum electronic file size of 10MB. The system allows for larger files to be broken down and uploaded as multiple files if they are broken into file sizes of less than 10MB.

4.4 Alternatively if you encounter difficulty when uploading your ITT Submission electronically using the link on the National Portal, tenderers are asked to send an email to the Procurement email Inbox in advance of the submission deadline advising of the difficulty being encountered. The Procurement Team will then make alternative arrangements to accept your submission in an electronic format via other means.

4.5 Where a tender is not uploaded onto the Portal or sent through a pre-agreed method the tender will not be evaluated.

The Procurement email Inbox address is: [email protected]. All emails sent to the Procurement inbox should be headed “High Alpha or Unconstrained Global Equities Investment Manager – SBC/CPS/805”.

5 Completion of Tender Documents5.1 It is the Tenderers responsibility to contact the Category Manager in a timely fashion to

notify and resolve any technical problems.

5.2 The closing date for tender submissions is Friday 18th April 2014 at 2pm. Late submissions will not be accepted.

5.3 Tenderers should allow sufficient time before the closing date to complete the tender.

6 Process for Questions/Clarifications6.1 Tenderers shall treat the Invitation to Tender documents as confidential and restrict its

circulation on a "need to know" basis.

6.2 All questions regarding this material must be directed in writing by email /through the Public Contracts Scotland Website prior to 3p.m on the 4th April 2014.

6.3 Tenderers should not provide any proprietary information in their questions.  All questions and answers will be posted on the Public Contracts Scotland portal (www.publiccontractsscotland.gov.uk) and shared with all prospective Tenderers. It is our intention to respond to all reasonable requests for clarification. All questions/answers will be sanitised to ensure confidentiality of organisations.

6.4 Any contact made directly with any other employee of the Scottish Borders Council regarding this Invitation to Tender is a violation of the terms of the response criteria and may result in disqualification from the tender process.

6.5 Tenderers are advised that their responses may be reproduced and that no further indication or request prior to publication will be made. Only information provided as a direct response to the Invitation to Tender will be evaluated. Information and detail which forms part of general company literature or promotional brochures etc. will not form part of the evaluation process. Marketing material should not be included.

6.6 Supplementary documentation may be attached to the Tender submission only where Tenderers have been directed to do so. Such material must be clearly marked with the name of the organisation and the question to which it relates.

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6.7 The response should be submitted by an individual of the organisation, company or partnership who has authority to answer on behalf of that organisation, company or partnership. Should the response be found to be erroneous or in any other way incorrect, we reserve the right to require the Tenderer to return the tender documents.

6.8 In the case where the error or misrepresentation is not discovered until after a contract is awarded Scottish Borders Council reserves the right to determine the contract and all costs incurred by Scottish Borders Council as a result of the determination and to recover those costs from the Contractor.

6.9 Scottish Borders Council will not be responsible for any expenses incurred in the preparation of Tenders, or in attending any post tender meetings, site visits or negotiations. No reimbursement shall be made by Scottish Borders Council whether or not an award of contract is made.

7 Tenderer Information Collection7.1 It is the responsibility of the tenderer to obtain for themselves at their own expense any

information necessary for the preparation of their tender and for any costs incurred during the tendering process.

8 Confidentiality8.1 Subject to the provisions of Freedom of Information (Scotland) Act 2002, contained in

paragraph 11 below, all information supplied by SBC in connection with the Invitation to Tender shall be treated as confidential by tenderers except that such information may be disclosed for the purpose of obtaining sureties and quotations necessary for the preparation and submission of the tender.

9 Collusion9.1 Suppliers must not submit an offer in collusion with any other person, company or body,

which may have the effect of distorting or increasing the cost of the goods or service provided under the contract. If, in the opinion of Scottish Borders Council, a quote is submitted on that basis, the submission may be rejected.

10 Inducements10.1 Scottish Borders Council is a champion of integrity, accountability and ethics in

procurement. If it is proven beyond reasonable doubt that a Supplier has attempted to offer an inducement to any member of staff that will enhance its chances of being awarded all, or part of this term business, it will be excluded from the evaluation process.

11 Information Disclosure and the Freedom of Information Act 200211.1 All information submitted to SBC may need to be disclosed and/or published by SBC.

SBC may disclose information in compliance with the Freedom of Information (Scotland) Act 2002, (the decisions of SBC in the interpretation thereof shall be final and conclusive in any dispute, difference or question arising in respect of disclosure under its terms), any other law, or, as a consequence of judicial order, or order by any court or tribunal with the authority to order disclosure.

11.2 Further, SBC may also disclose all information submitted to them to Scottish or United Kingdom Parliament or any other department, office or agency of Her Majesty’s Government in Scotland or the United Kingdom, and their servants or agents.

11.3 When disclosing such information to either Scottish Parliament or the United Kingdom Parliament or their executive bodies, it is recognised and agreed by both parties that SBC shall, if they see fit, disclose such information and are unable to impose any restriction upon the information that they provide to Members of the Scottish Parliament,

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or Members of the United Kingdom Parliament; such disclosure shall not be treated as a breach of this Contract.

11.4 Accordingly, if you consider that any of the information included in your bid is commercially confidential, please complete and return Schedule 11 with your tender to identify it and explain (in broad terms) what harm might result from disclosure and/or publication.

11.5 It should be noted though, that, even where you have indicated that information is commercially sensitive, SBC may disclose this information where they see fit. Receipt by SBC of any material marked “confidential” or equivalent should not be taken to mean that SBC accept any duty of confidence by virtue of that marking.

12 Modifications to the Invitation To Tender by SBC12.1 Any modification to the Invitation To Tender by SBC will be notified to tenderers no less

than 10 working days prior to the tender return date. If appropriate, SBC will revise the tender return date to all tenderers to accommodate this.

13 Accuracy of Tender Response13.1 Tenderers will be deemed to have examined all the documents enclosed with this

Invitation To Tender and will be held to have fully informed themselves as to the nature and extent of the requirements detailed in the Invitation To Tender. Tenderers must check the accuracy of their tender submission prior to return, paying particular attention to clerical errors and omissions.

13.2 SBC may, at its discretion, seek clarification regarding any concerns over accuracy of tendered responses. Tenderers will not be permitted to amend tenders after submission. SBC reserve the right to disqualify incomplete tenders.

14 Tender Validity14.1 Tender responses shall remain open until the award of the contract.

15 Terms of Offer15.1 The offer must be held open for acceptance for a period of 90 days from the due date for

the receipt of the proposal.

16 Prices16.1 Prices and rates quoted within the submission should, where required, be set on a fixed

basis and must be exclusive of Value Added Tax.

A total price for the project must be submitted, in accordance with the requirements of the Pricing Schedule at Schedule 9 of this (ITT), together with a detailed price breakdown.

17 Agreement Implementation17.1 The successful supplier will be required to enter into a contract with Scottish Borders

Council in accordance with the Council’s Terms and Conditions of Contract for the Purchase of Services – see Schedule 6 for details.

18 Tender Evaluation Criteria18.1 Each tender will be subject to a technical and financial analysis. The aim of the

evaluation is to shortlist the tender(s) which represent the best long term value for money. Tender selection will be based on “most economically advantageous tender”.

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18.2 The technical analysis will ensure that tenderers have met the outputs contained in the Statement of Requirements and requirements detailed in the Information to be provided in the Tender Response.

18.3 To undertake this analysis, a Price Quality Ratio will be applied during tender evaluation. The following evaluation criteria will be applied:

Price: 15%Quality: 85%

Quality Criteria Weighting

B1 – Project Team Structure and Resources Directly Involved in Delivering and Commissioning the Services

18%

B2 – Investment Manager Process and Performance

54%

B3 – Compliance and Risk Management 13%

B4 – Customer Services 5%

B5 – Supplier PresentationPresentation of mock 6 monthly performance update including reporting

10%

18.4 Scottish Borders Council will provide a de-briefing service, in writing, to all unsuccessful suppliers, in accordance with Article 32 of the Public Contracts (Scotland) Regulations 2012.

18.5 The quality and pricing scoring will be carried out independently of each other.  The Tender Evaluation Panel responsible for assessing the quality aspects will not have access to the pricing information until the quality assessment process is complete.

18.6 Quality scores will then be combined with the scores for the pricing element and brought together to arrive at a final total score for each Tender.

18.7 When we have made a decision on the award of this contract, we will inform you in writing as to whether or not you have been successful and offer feedback to you.

18.8 SBC reserves the right to:

accept or reject any Tender or alternative Tender

accept only such part or parts of any Tender it shall deem to be appropriate

enter into one or several Contract(s)

cancel the Invitation to Tender process and reject all Tenders at any time prior to the formation of a Contract.

18.9 Please note that Scottish Borders Council will require clarification of the answers Tenderers have provided or ask for additional information during the evaluation process.

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18.10 No part of the tender of the tender documentation will be returned to the Tenderer.

19 Tender Opening Procedures19.1 Submissions will be securely stored within the electronic tender box on the Procurement

Scotland Public Contracts site and will remain unopened until the due date and time for opening as specified within this document.

20 Treatment of Tender Submissions20.1 Scottish Borders Council will consider all submissions correctly submitted with a view to

concluding a contract, subject to clarification of any outstanding matters.

21 Contract Commencement and Management Procedure21.1 The successful supplier shall be obliged to co-operate with Scottish Borders Council, or

their representatives, in its management of the contract, and comply with all Scottish Borders Council’s contract management requirements.

22 Unsuccessful Tenders22.1 Within the constraints of commercial confidentiality, unsuccessful Tenderers will be

offered the opportunity of feedback on their tender submission and provided with appropriate information that will enable them to provide more competitive offers in the future.

23 Intellectual Property Rights23.1 As outlined in Schedule 7: Section 8 of the Terms and Conditions Scottish Borders

Council owns any Intellectual Property Rights associated with any outputs associated with this contract.

24 Business Continuity Planning24.1 Business Continuity Management is an essential management task that makes

businesses better able to cope effectively with all kinds of disruptions and emergencies.

24.2 Scottish Borders Council are committed to raising awareness with it’s suppliers, and indeed the wider supply chain, of the importance of thinking ahead and planning to make sure organisations can survive and recover quickly from a crisis.

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Schedule 2

PARTIES ACCESSING AND CALLING FROM THE CONTRACT

The organisations listed here in Schedule 2 will be able to access and call from the Contract.

Name of Organisation Registered Office:Scottish Borders Council Council HQ

Newtown St BoswellsMelroseTD6 0SA

Only Scottish Borders Council will be able to access and call from the Contract.

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Schedule 3

STATEMENT OF REQUIREMENTS

The Statement of Requirements comprises Sections A and B. Section A details the scope of the requirement together with pertinent details whereas Section B provides information on the relationship between Scottish Borders Council and Contractors and the process for awarding a Contract.

Section A

1. Scope of Requirement

1.1 Background Information

1.1.1 Following a review at Scottish Borders Council (“the Council”) of the Pension Fund’s (“the Fund”) assets allocation and investment managers the Council wish to appoint a High Alpha or Unconstrained Global Equities Investment Manager.

1.1.2 The Council’s intention is to achieve diversification of the Fund’s equities investment portfolio across a range of complementary investment managers and investment approaches and philosophies, whilst maintaining its bias in favour of mandates where the investment manager is not overly constrained by the benchmark composition when selecting stocks for the portfolio.

1.2 Overview of High Alpha or Unconstrained Global Equity Investment Manager Requirements

1.2.1 The contract will be awarded for an initial period of 5 years, with Scottish Borders Council having the option to extend on an annual basis to a maximum of 7 year contract term. The duration of the contract may be extended or curtailed with the successful supplier during the term of the contract.

1.2.2 The description below provides indicative Pension Fund values associated with the contract.

1.2.3 It is our intention to award a single supplier contract to appoint a High Alpha Global Equities Assets Investment Manager to manage an element of the Fund’s assets in a long only global equities mandate which invests in equities listed on developed and emerging markets exchanges.

1.2.4 The extent and timing of any proposed changes are not included in this questionnaire as these matters are still in working draft stage, however it is expected that the implementation of the new mandate will happen during the first half of 2014.

1.2.5 The Council’s intention is to transition some of its existing global equity investments to a new High Alpha global equity mandate for around 10% to 15% of the Fund’s assets, which currently amounts to around £45 million to £67 million (as at 30 June 2013 valuation).

1.2.6 The Council’s preferred benchmark for performance measurement (and potentially also portfolio construction should the appointed manager take this into account) for the mandate is the MSCI All Country World Index and the out-performance target should be 2.5% per annum (or above) before investment management fees.

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1.2.7 Submissions from managers of unconstrained portfolios which use the benchmark only for performance measurement purposes, and take no account of the benchmark for portfolio construction purposes or which use alternative similar benchmarks to the MSCI All Country World Index will also be welcomed.

1.2.8 The investment approach taken should be a value orientated, style agnostic or otherwise orientated to be different from, and complement to, the investment approaches taken by the Council’s other global equity managers described in the following two paragraphs.

1.2.9 The first manager’s investment approach is a bottom up process investing in companies that it believes will grow earnings faster than the market average.

1.2.10 The second manager’s investment approach is a bottom up process investing in a portfolio of exceptionally high quality companies which have the potential to generate stable, consistent returns and capital protection.

1.3 Investment Management Process and Performance

1.3.1 The successful supplier must be able to demonstrate a robust approach to investment management for its High Alpha or Unconstrained Global Equities investment products, which demonstrates real performance over the medium to long term.

1.3.2 In addition, they must be able to clearly articulate the investment product’s investment objectives and the portfolio style/characteristics.

1.3.3 The supplier, in the event that the fund is managed through a pooled investment vehicle, will be required to ensure that all relevant tax reclaims to which the Fund is implicitly entitled to arising from investing in the pooled investment vehicle, are made.

1.4 Transition Management

1.4.1 The financing of the new mandate will be funded from liquidating investments in other mandates and surplus cash held by the fund. It is envisaged a transition manager will be appointed to support the equality investment transition process.

1.5 Custodian

1.5.1 The Council employs the services of JP Morgan as custodian for its pension Fund assets and it would be expected that they would be used to service this mandate where appropriate.

1.6 Environmental, Social and Corporate Governance

1.6.1 As part of fulfilling the Fund’s primary fiduciary duty to maximise investment returns for the benefit of the Fund members, the Council considers that engagement with companies as the most effective means of understanding and influencing the environmental, social and business policies of companies which have the potential to impact on their financial performance.

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1.6.2 The Council also recognises its responsibility to exercise voting rights to ensure transparency and accountability in corporate governance.

1.6.3 The successful supplier will be delegated responsibility for, and will be required to demonstrate, active engagement with companies and exercising delegated voting rights in the best financial interests of the Fund.

2. Outputs, Milestones & Performance Standards

2.1 The Council’s preferred benchmark for performance measurement (and potentially also portfolio construction should the appointed manager take this into account) for the mandate is the MSCI All Country World Index and the out-performance target should be 2.5% per annum (or above) before investment management fees.

2.2 The successful supplier will normally be required to attend two meetings of the Pension Fund Committee per annum, normally at six monthly intervals, and present to the members an update of the mandate’s performance and answer questions as appropriate.

2.3 Every Quarter a performance report including narrative on key activities as detailed in Schedule 6 should be provided to the Council.

2.4 Every month specific performance and fund accounting reports as detailed Schedule 6 should be provided to the Council.

2.5 As required, information on the currency exposures of the mandate should be provided to the Fund’s currency hedging manager.

2.6 As required, the supplier will keep the Council informed of the implications of significant world economic events (e.g. Japanese Tsunami, Egyptian crisis) for the High Alpha or Unconstrained Global Equities mandate.

3. Compliance and Risk Management

3.1 The successful supplier must be able to demonstrate a robust compliance and risk management function within its organisation and in particular in relation to the High Alpha or Unconstrained Global Equity Product being proposed for the Fund.

3.2 The approach to the identification and management of specific risk including derivatives, currency risk and liquidity should be clear, transparent and robust.

3.3 The successful supplier will not make investments which would contravene the Council’s Statement of Investment Principles.

3.4 The successful supplier must be able to demonstrate full compliance with AFF1/06 or equivalent.

4. Specific Policy/Best Practice/Legislative Requirements

4.1 The successful supplier must manage the Fund in accordance with the Local Government Pension Scheme (Management and Investment of Funds) (Scotland)

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Regulations 2010 (as amended) and must comply with any future changes to legislation relating to Local Government Pension Schemes in Scotland.

5 Contact & Liaison with SBC

5.1 The key Council Officer for contact will be:

Kirsty RobbTreasury & Capital ManagerScottish Borders CouncilCouncil HeadquartersNewtown St BoswellsMelroseTD6 0SA

Telephone: 01835825016Email: [email protected]

5.2 The Council will provide the successful supplier with an authorised list of employees who are able to instruct the Investment Manager, and will keep them informed of any subsequent changes.

6 Quality Assurance, Continuous Improvement and Innovation

6.1 The supplier will at all times monitor and seek to improve its own performance and quality assure Contract performance and delivery.

6.2 The supplier will be compliant with AMIR/GIPS Performance Standards.

7 Staffing

7.1 Staff involved in supporting and delivering the services under this tender will be required to meet all necessary requirements of the Financial Conduct Authority (or equivalent body) and be appropriately qualified to undertake the work they are engaged to deliver.

7.2 The supplier will be required to demonstrate that the team in place to support the delivery of the High Alpha or Unconstrained Global Equity mandate are appropriately educated and experienced, has a significant degree of team stability and has the depth of resources necessary to deliver first class investment management activities.

7.3 Generally, staff experience of working in a LGPS pension environment is desirable although not mandatory.

7.4 The supplier will at all time comply with the requirements of all applicable clauses of the Standard Terms & Conditions (Schedule 6).

7.5 The supplier will be required to advise in advance, or as soon as practicable, any changes in Key Personnel changes within their organisation which their organisation

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which may have a direct or indirect impact on the delivery of the investment mandate.

8 Management of the Contract

8.1 The supplier will nominate an individual (the Investment Manager or an Account Manager) who will be the point of contact for all matters relating to the Contract.

8.2 The Investment Manager or/and Account Manager may be required to attend a minimum of two meetings per annum of the Pension Fund Sub Committee. The timing and frequency of the meetings will be at six monthly intervals aligned to the Sub Committee’s quarterly meeting cycle.

8.3 The purpose of the meetings is to review the performance of the mandate, identify what actions have been taken to address areas of weak performance, review Corporate Governance engagement activities undertaken on the Council’s behalf and any personnel changes which impact on the management/performance of the mandate.

8.4 Ad hoc meetings during the year may also be required with Council Officers or the Pension Fund Sub Committee, however these will be discussed and arranged at mutually agreed dates.

8.5 The supplier will be required to submit the information detailed in Schedule 5 and adhere to the requirements for involvement in strategic contract management.

8.6 In addition it is required that a formal escalation point above the Account Manager is identified should any unforeseen issues arise.

9 Working Relationships and Expectations

9.1 To ensure the smooth running of the implementation of the new mandate regular communication shall be held between the successful supplier, the Council’s Investment Adviser, the Transition Manager, the Custodian and the Council’s Treasury and Capital Manager.

The majority of this communication is anticipated to be undertaken via telephone and email, however circumstances may arise where representatives of successful Tenderer and appropriate third parties shall be required to attend face to face meetings. The Council shall not be liable for any hotel, travel or other expenses in connection with these meetings (except, in the Council’s absolute discretion, in exceptional circumstances).

9.2 It is envisaged that successful supplier will operate a procedure for complaint and dispute resolution that is in accordance with the FCA (or equivalent regulatory authority) requirements to ensure the effective consideration of complaints.

9.3 As a minimum requirement and in the first instance, any complaints should be raised between the Treasury & Capital Manager and the supplier’s nominated Account Manager to discuss the issue with the objective of trying to resolve the matter.

9.4 In the event that this is unsuccessful the relevant party will communicate formally in writing to more senior levels within the organisation, and it is proposed that this will be done as follows:

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Council Supplier Time to Resolve Complaint Satisfactorily before Escalation

1st Stage Treasury & Capital Manager

Investment/Account Manager

5 working days

2nd Stage Chief Financial Officer

To be advised by the supplier

10 working days

3rd Stage Pension Fund Sub-Committee

To be advised by the supplier

10 working days

10 Problem Solving

10.1 In the spirit of successful joint working to ensure the success of the electronic payments mechanism the tenderer responsible for any element of this contract shall be expected to engage in open communication and dialogue with the Council to rectify operational problems and to take whatever action is reasonably required to put those problems right.

10.2 However, the genuine aspiration towards openness expressed in paragraph 3 does not in any way detract from the Council’s legal rights or remedies whether arising under this Contract or elsewhere and whether in respect of major or minor breaches of contract.

11 Business Continuity Planning & Phase Out Plan & Exit Strategy

11.1 The supplier should demonstrate that they can provide the products and/or services specified within this tender, throughout the contract period.

11.2 To ensure that they can achieve this, suppliers are encouraged to develop, and regularly review, an appropriate business continuity plan.

11.3 The business continuity plan should address all foreseeable circumstances that would affect the daily operation of the provision of products and/or service as appropriate. Examples of such circumstances could include, but are not limited to:

failures of equipment, services and staffing serious impact on supply chains as a result of non-availability of raw

materials components, importing difficulties and international events or incidents a natural disaster such as an earthquake, severe weather conditions and any

disruption caused by lightning strikes disruption to the local and/or national power supply disruption to the transport infrastructure for whatever reason including fuel

shortages major accidents any major enemy or terrorist attack on the country that create a large number

of casualties, or the threat of such an attack any actual or potential industrial action, including strike action

11.4 Where appropriate and upon reasonable request, the supplier should make this information available to the Council, along with any details of actions to be taken

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both immediately and escalating with the passing of time until normal circumstances are restored.

11.5 Depending on the nature and seriousness of the contingency, the Council, as appropriate, may alert the supplier to the potential contingency and request information.

11.6 In any crisis, it is important that the supplier should continue to function as near normal as possible so that it meets the specification of the contractual agreement in addition to any further demands resulting from the crisis.

11.7 The supplier must ensure at all times that they operate an up to date and robust phase out plan and exit strategy.

12 Variations to the Contract

12.1 Any variations required to must follow the Change Control Procedures detailed in the Terms and Conditions.

12.2 In the event that variations are identified as being required, the minimum requirement from the Council is to have the first step will be contact between the Treasury and Capital Manager and the Supplier’s nominated Account Manager for the Contract. Following this discussion the necessary steps to secure agreement and approval of the variation will be identified.

13 Corporate Social Responsibility (CSR) Issues

13.1 The Council’s vision is to deliver demonstrable best value from advanced procurement, ensuring best practice across all procurement activities, and meeting the key performance indicators of the McClelland Report on Public Sector Procurement in Scotland.

13.2 In pursuit of this objective, the Council will take account of economic, social and environmental impacts in the way the organisation operates – maximising the benefits and minimising the downsides.

13.3 As a socially responsible organisation that is constantly striving to apply best practice to all of its operation, the Council are committed to moving beyond a base of legal compliance or CSR matters to integrating socially-responsible behaviour into their core values.

13.4 The Council believes that this approach will produce sound business benefits, as well as being the correct way in which the company should operate from an ethical viewpoint. The supplier shall at all times act in an ethical, environmental, and socially responsible manner in the conduct of their business.

Section B

1 Creating a Contract

1.1 The Council and the supplier will be the parties to the Contract, which will constitute, as a minimum, the Statement of Requirements, the completed Pricing Schedule,

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Monitoring Schedule and Terms & Conditions, in addition to any other document referred to in the Contract award letter.

1.2 The Council will form the legally binding Contract by accepting the successful Tenderer’s tender and detailing all the documentation forming the Contract in the award letter. The successful tenderer is then only required to acknowledge receipt of the award letter and that the Contract has been entered into as set out in the award letter.

1.3 In line with LGPS regulations, the Council must be able to terminate the appointment by not more than one month’s notice.

1.4 With reference to clauses 1.1 and 1.2 above the Council recognises that it will need to enter into an Investment Management Agreement (IMA) with the supplier and that said IMA will be a document that forms part of the Contract. However, to whatever extent the provisions of the IMA coincide with the terms of any of the other documents which comprise the Contract, the terms of such other documents which comprise the Contract, shall take precedence in all respects over the terms of the IMA.

1.5 By submitting a tender in response to this Invitation to Tender each tenderer signals its acceptance of the terms of the immediately preceding clause 1.4 hereof and its consent to the insertion in the IMA of a clause confirming said order of precedence.

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Schedule 4

INFORMATION RELATING TO STAFF TRANSFERS SCHEDULE

Tenderers should note that TUPE is unlikely to apply to the Contract.

Please note that a TUPE transfer happens by operation of law and SBC’s view is not determinative.

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Schedule 5

MONITORING AND EVALUATION SCHEDULE

1 Roles & Responsibilities

1.1 A summary of the key roles and responsibilities of the contractor are detailed below.

Key Roles & ResponsibilitiesContractor Contribute to the strategic contract management process by:

managing a portfolio of global equities in line with a High Alpha or Unconstrained approach with the aim of delivering investment returns and managing investment risk in line with defined targets

delivering/performing contractual obligations arising from the Contract

providing the required management information and in a timely fashion to the Council (and as requested on an ad hoc basis)

attending performance review meetings delivering an effective account management and customer

services role to the Council contributing to continuous improvement and innovation

leading to improved value for money and resource and process efficiencies

2. Key Performance Indicators

2.1 Performance of the Contract will be monitored against the major Key Performance Indicators (KPIs) summarised below, and specified in detail in the table below:

our-performance target of 2.5% per annum (or above) before investment management fees against the benchmark which will be MSCI All Country World Index (or a similar alternative benchmark), this will be measured on an agreed number of rolling years basis.

investment risk taken being within the agreed limits delivery of accurate and compliant Pension Fund Performance and Fund Accounting

information within the monthly, quarterly and annual deadlines quarterly reporting of environmental, social and corporate governance engagement

activity and details of voting rights which have been exercised on the Fund’s behalf; communication and customer interface with the Council (both Officers and Councillors),

its custodian, its transition manager and its Investment Advisors; production of any ad hoc management information; invoicing

3 Meetings & Submission of Performance Reports

3.1 Performance and Fund Accounting Reporting3.1.1 Following commencement of the Contract the supplier will provide a performance reporting

to the Council. There will be monthly and quarterly reporting requirements.

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Monthly reporting based on the end of each calendar month which will include the following data/information:

Fund Reconciliation Cash Reconciliation Securities Reconciliation Investment Income Received Analysis and Reconciliation Investment Income Debtor Analysis Fund Valuations, including by Country and then Company within Country Summary and Detailed Transaction Listing Summary and Detailed Currency Transaction Listings Summary and Detailed Income Receipts

3.1.2 Monthly reports must be submitted by email, in the agreed format, to the Council, T&[email protected] within 7 working days after the end of each monthly reporting period.

3.1.3 The Council is currently reviewing its fund accounting system and currently require a monthly extract of transaction activity for upload into this system. This information would also be required to be submitted to the T&[email protected] within 7 working days after each monthly reporting period. The exact details required would be subject to mutual agreement.

3.1.4 Quarterly reporting based on the end of each quarter (i.e. March, June, September & December) which will include the following data/information:

Analysis of the High Alpha or Unconstrained Global equities mandate performance over the quarter, last 12 months and last 3 years versus benchmark before and after fees.

Explanatory narrative covering company engagement activities, portfolio risk and governance matters and key market and economic issues affecting the management and performance of the mandate.

Analysis of the voting rights exercised by the supplier on the Council’s behalf. Income and cost summary in relation to Transactions undertaken in the quarter. Summary Fund Valuation for the quarter.

3.1.5 Quarterly reports must be submitted by email to the Council, T&[email protected] within 15 working days after the end of each quarterly reporting period.

3.1.6 In addition, the Council have out-sourced the production on quarterly performance reporting and currently the supplier will be required to submit data to its Investment Advisers, currently AON Hewitt to inform the quarterly overall Fund reporting and to the company it uses for detailed performance analysis, currently State Street Global Services – Investment Analytics.

This information is required to be submitted within set deadlines at the end of each quarter.

3.2 Annual Reporting Requirements

3.2.1 The supplier will provide a performance report to the Council’s Treasury & Capital Manager annually (as at the 31st March) to include the following information/data:

A report statement to the Council demonstrating its compliance with the Standard Terms & Conditions and such additional information as the Council may

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reasonably require for the purpose of assessing the Contractor’s compliance with such clauses.

Fund Accounting information on a SORP compliant bid valuation basis and any other information required to compile the annual accounts for the Scottish Borders Pension Fund.

AAF/06 Internal Controls Report

3.2.2 Reports must be submitted by email to the Council’s Treasury & Capital Manager within 10 working days after the end of each annual reporting period.

3.3 Meetings

3.3.1 The Contractor will adhere to the requirements detailed in Schedule 3.

4 Monitoring by Scottish Borders Council

4.1.1 The Treasury and Capital team and the Pension Fund Sub-Committee at the Council shall also continually monitor the effective performance of all aspects of this Contract, from the start.

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Schedule 6

TERMS AND CONDITIONS

SCOTTISH BORDERS COUNCIL CONDITIONS OF CONTRACT FOR THE PURCHASE OF SERVICES

These Conditions may only be varied with the written agreement of the Purchaser. No terms or conditions put forward at any time by the Supplier shall form any part of the Contract unless specifically agreed in writing by the Purchaser.

1. DEFINITIONSIn these Conditions:

'Purchaser' means on behalf of Scottish Borders Council;

'Supplier' means the person, firm or company to whom the Contract is issued;

'Services' means the services to be provided as specified in the Purchase Order and shall, where the context so admits, include any materials, articles and goods to be supplied thereunder;

'Premises' means the location where the services are to be performed, as specified in the Purchase Order;

'Contract' means the contract between the Purchaser and the Supplier consisting of the Purchase Order, these Conditions and other documents (or parts thereof) specified in the Purchase Order;

'Purchase Order' means the document setting out the Purchaser's requirements for the Contract.

2. CHANGE TO CONTRACT REQUIREMENTS2.1 The Purchaser may order any variation to any part of the Services that for any other reason shall in the

Purchaser’s opinion be desirable. Any such variation may include (but shall not be restricted to) additions, omissions, alterations, substitutions to the Services and changes in quality, form, character, kind, timing, method or sequence of the Services.

2.2 Save as otherwise provided herein, no variation of the Services as provided for in Condition 2.1 hereof shall be valid unless given or confirmed in the form of an order given by the Purchaser. All such orders shall be given in writing provided that if for any reason the Purchaser shall find it necessary to give any such order orally in the first instance the Supplier shall comply with such oral order which must be confirmed in writing by the Purchaser within 2 working days of the giving of such oral order by the Purchaser, failing which the variation made by such oral order shall cease to have effect on the expiry of the said 2 working day period.

2.3 Where any such variation of the Services made in accordance with Condition 2.1 and 2.2 has affected or may affect the costs incurred by the Supplier in providing the Services, the Supplier will notify the Purchaser in writing of the effect which it has had or may have on the said costs and such notification shall be considered by the Purchaser, who shall take all of the facts into account (including such information as may be provided by the Supplier in respect of the effect which such variation has had or may have on the costs incurred by the Supplier in providing the service) and may authorise such alteration to the sums to be paid to the Supplier in accordance with the provisions of the Contract as are, in the Purchaser’s opinion, appropriate and reasonable in the circumstances.

3. INSPECTION OF PREMISES AND NATURE OF SERVICES3.1 The Supplier is deemed to have inspected the Premises before tendering so as to have understood the nature and

extent of the Services to be carried out and is deemed to be satisfied in relation to all matters connected with the Services and Premises.

3.2 The Purchaser shall, at the request of the Supplier, grant such access as may be reasonable for this purpose.

4. SUPPLIER'S STATUSIn carrying out the Services the Supplier shall be acting as principal and not as the agent of the Purchaser. Accordingly:

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(a) the Supplier shall not (and shall procure that the Supplier’s agents and servants do not) say or do anything that might lead any other person to believe that the Supplier is acting as the agent of the Purchaser, and

(b) nothing in this Contract shall impose any liability on the Purchaser in respect of any liability incurred by the Supplier to any other person but this shall not be taken to exclude or limit any liability of the Purchaser to the Supplier that may arise by virtue of either a breach of this Contract or any negligence on the part of the Purchaser, or the Purchaser’s staff or agents.

5. SUPPLIER'S PERSONNEL5.1 The Supplier shall take the steps reasonably required by the Purchaser to prevent unauthorised persons being

admitted to the Premises. If the Purchaser gives the Supplier notice that any person is not to be admitted to or is to be removed from the Premises or is not to become involved in or is to be removed from involvement in the performance of the Contract, the Supplier shall take all reasonable steps to comply with such notice and if required by the Purchaser the Supplier shall replace any person removed under this Condition with another suitably qualified person and procure that any pass issued to the person removed is surrendered.

5.2 If and when instructed by the Purchaser, the Supplier shall give to the Purchaser a list of names and addresses of all persons who are or may be at any time concerned with the Services or any part of them, specifying the capacities in which they are so concerned, and giving such other particulars and evidence of identity and other supporting evidence as the Purchaser may reasonably require.

5.3 The decision of the Purchaser shall be final and conclusive as to whether any person is to be admitted to or is to be removed from the Premises or is not to become involved in or is to be removed from involvement in the performance of the Contract and as to whether the Supplier has furnished the information or taken the steps required of the Supplier by this Condition.

5.4 The Supplier shall bear the cost of any notice, instruction or decision of the Purchaser under this Condition.

6. MANNER OF CARRYING OUT THE SERVICES6.1 The Supplier shall make no delivery of materials, plant or other things nor commence any work on the Premises

without obtaining the Purchaser's prior consent.

6.2 Access to the Premises shall not be exclusive to the Supplier but only such as shall enable the Supplier to carry out the Services concurrently with the execution of work by others. The Supplier shall co-operate with such others as the Purchaser may reasonably require.

6.3 The Purchaser shall have the power at any time during the progress of the Services to order in writing:

(a) the removal from the Premises of any materials which in the opinion of the Purchaser are either hazardous, noxious or not in accordance with the Contract, and/or

(b) the substitution of proper and suitable materials, and/or

(c) the removal and proper re-execution notwithstanding any previous test thereof or interim payment therefore of any work which, in respect of material or workmanship is not in the opinion of the Purchaser in accordance with the Contract.

The6.4 The Supplier shall forthwith comply with any order made under Condition 6.3.

6.5 On completion of the Services the Supplier shall remove the Supplier’s plant, equipment and unused materials and shall clear away from the Premises all rubbish arising out of the Services and leave the Premises in a neat and tidy condition.

7 HEALTH AND SAFETY

The Supplier shall perform the Services in such a manner as to be safe and without risk to the health or safety of persons in the vicinity of the place where the Services are being performed (whether such persons are in the vicinity of the said place at the time when the Services are being performed or otherwise) and in such a manner as to comply with any relevant health and safety or other legislation (including Statutory Instrument, Orders, or Regulations made under the said legislation) and any requirements imposed by a local or other regulatory authority in connection with the performance of services of the type supplied to the Purchaser, whether

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specifically or generally. The Supplier shall indemnify the Purchaser against all actions, suits, claims, demands, losses, charges, costs and expenses which the Purchaser may suffer or incur as a result of or in connection with any breach of this Condition.

8. TIME OF PERFORMANCEThe Supplier shall begin performing the Services on the date stated in the Purchase Order and shall complete the Services by the date stated in the Purchase Order or continue to perform them for the period stated in the Purchase Order (whichever is applicable). Time is of the essence of the Contract. The Purchaser may by written notice require the Supplier to execute the Services in such order as the Purchaser may decide. In the absence of such notice the Supplier shall submit such detailed programmes of work and progress reports as the Purchaser may from time to time require.

9. PAYMENT9.1 Unless otherwise stated in the Contract, payment will be made within 30 days of receipt and agreement of

invoices, submitted monthly in arrears, for work completed to the satisfaction of the Purchaser.

9.2 Value Added Tax, where applicable, shall be shown separately on all invoices as a strictly net extra charge.

9.3 Notwithstanding Condition 18 of this Contract the Supplier may assign to another person (an "assignee") the right to receive payment of the Price or any part thereof due to the Supplier under this Contract subject to (i) deduction of sums in respect of which the Purchaser exercises the right of recovery under Condition 17 of this Contract and (ii) all the related rights of the Purchaser under this Contract in relation to the recovery of sums due but unpaid. The Supplier shall notify or procure that any assignee notifies the Purchaser of any variations to the arrangements for payment of the Price or for handling invoices, in each case in good time to enable the Purchaser to redirect payments or invoices accordingly. In the absence of such notification the Purchaser shall be under no obligation to vary the arrangements for payment of the Price or for handling invoices.

10. FREE-ISSUE MATERIALSWhere the Purchaser for the purpose of the Contract issues materials free of charge to the Supplier such materials shall be and remain the property of the Purchaser. The Supplier shall maintain all such materials in good order and condition and shall use such materials solely in connection with the Contract. The Supplier shall notify the Purchaser of any surplus materials remaining after completion of the Services and shall dispose of them as the Purchaser may direct. Waste of such materials arising from bad workmanship or negligence of the Supplier or any of the Supplier’s servants, agents or sub- Contractors shall be made good at the Supplier's expense. Without prejudice to any other of the rights of the Purchaser, the Supplier shall deliver up such materials whether processed or not to the Purchaser on demand.

11. AUDIT The Supplier shall keep and maintain until 2 years after the Contract has been completed records to the satisfaction of the Purchaser of all expenditures which are reimbursable by the Purchaser and of the hours worked and costs incurred in connection with any employees of the Supplier paid for by the Purchaser on a time charge basis. The Supplier shall on request afford the Purchaser or the Purchaser’s representatives such access to those records as may be required by the Purchaser in connection with the Contract.

12. CORRUPT GIFTS OR PAYMENTSThe Supplier shall not offer or give, or agree to give, to any employee or representative of the Purchaser any gift or consideration of any kind as an inducement or reward for doing or refraining from doing or for having done or refrained from doing, any act in relation to the obtaining or execution of this or any other contract with the Purchaser or for showing or refraining from showing favour or disfavour to any person in relation to this or any such contract. The attention of the Supplier is drawn to the criminal offences created by the Prevention of Corruption Acts 1889 to 1916.

13. PATENTS, INFORMATION AND COPYRIGHT13.1It shall be a condition of the Contract that, except to the extent that the Services incorporate designs furnished by

the Purchaser, that nothing done by the Supplier in the performance of the Services shall infringe any patent, trade mark, registered design, copyright or other right in the nature of intellectual property of any third party and the Supplier shall indemnify the Purchaser against all actions, claims, demands, costs and expenses which the Purchaser may suffer or incur as a result of or in connection with any breach of this Condition.

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13.2All rights (including ownership and copyright) in any reports, documents, specifications, instructions, plans, drawings, patents, models or designs whether in writing or on magnetic or other media:

(a) furnished to or made available to the Supplier by the Purchaser shall remain vested in the Purchaser absolutely.

(b) prepared by or for the Supplier for use, or intended use, in relation to the performance of this Contract are hereby assigned to and shall vest in the Purchaser absolutely, and (without prejudice to Condition 15.2) the Supplier shall not and shall procure that the Supplier’s servants and agents shall not (except to the extent necessary for the implementation of this Contract) without the prior written consent of the Purchaser use or disclose any such reports, documents, specifications, instructions, plans, drawings, patents, models, designs or other material as aforesaid or any other information (whether or not relevant to this Contract) which the Supplier may obtain pursuant to or by reason of this Contract, except information which is in the public domain otherwise than by reason of a breach of this provision, and in particular (but without prejudice to the generality of the foregoing) the Supplier shall not refer to the Purchaser or the contract in any advertisement without the Purchaser's prior written consent.

13.3The provisions of this Condition 12 shall apply during the continuance of this Contract and after its termination howsoever arising.

14. INDEMNITY AND INSURANCE14.1Without prejudice to any rights or remedies of the Purchaser the Supplier shall indemnify the Purchaser against

all actions, suits, claims, demands, losses, charges, costs and expenses which the purchaser may suffer or incur as a result of or in connection with any damage to property or in respect of any injury (whether fatal or otherwise) to any person which may result directly or indirectly from any negligent or wrongful act or omission of the Supplier.

14.2Except in the case of loss, damage or personal injury (including death) suffered by an employee of the Supplier (in respect of which the indemnity in Condition 13.1 shall apply whether or not the loss, damage or personal injury was caused by the negligent or wilful act or omission of the Purchaser, Scottish Borders Council or any servant or agent of Scottish Borders Council) the indemnity contained in Condition 13.1 shall not apply to the extent that the loss, damage or injury is caused by the negligent or wilful act or omission of the Purchaser or any servant or agent of the Purchaser.

14.3The Supplier shall have in force and shall require any sub-Contractor to have in force:

(a) employer's liability insurance in accordance with any legal requirements for the time being in force, and

(b) public liability insurance for such sum and range of cover as the Supplier deems to be appropriate but covering at least all matters which are the subject of indemnities or compensation obligations under these Conditions in the sum of not less than £5 million for any one incident and unlimited in total, unless otherwise agreed by the Purchaser in writing.

14.4The policy or policies of insurance referred to in Condition 14.3 shall be shown to the Purchaser whenever the Purchaser requests, together with satisfactory evidence of payment of premiums, including the latest premium due thereunder.

15. DISCRIMINATION The Supplier shall not unlawfully discriminate either directly or indirectly on such grounds as race, colour, ethnic or national origin, disability, sex or sexual orientation, religion or belief, or age and without prejudice to the generality of the foregoing the Supplier shall not unlawfully discriminate within the meaning and scope of the Sex Discrimination Act 1975, the Race Relations Act 1976, the Equal Pay Act 1970, the Disability Discrimination Act 1995, the Employment Equality (Sexual Orientation) Regulations 2003, the Employment Equality (Religion or Belief) Regulations 2003, the Employment Equality (Age) Regulations 2006, the Equality Act 2006, the Equality Act (Sexual Orientation) Regulations 2007, the Human Rights Act 1998 or other relevant or equivalent legislation, or any statutory modification or re-enactment thereof. The Supplier shall take all reasonable steps to secure the observance of this Condition by all employees and representatives of the Supplier.

16. CONFIDENTIALITY AND ACCESS TO COUNCIL INFORMATION

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16.1The Supplier shall keep confidential and not disclose and shall procure that the Supplier’s employees keep secret and do not disclose any information of a confidential nature obtained by the Supplier by reason of this Contract except information which is in the public domain otherwise than by reason of a breach of this provision.

16.2All information related to the Contract with the Supplier will be treated as commercial in confidence by the Purchaser except that:

(a) The Supplier may disclose any information as required by law or judicial order to be disclosed.

(b) The Purchaser may disclose any information as required by law or judicial order to be disclosed, further the Purchaser may disclose all information obtained by the Purchaser by virtue of the Contract to the Scottish or United Kingdom Parliament or any other department, office or agency of Her Majesty’s Government in Scotland or the United Kingdom, and their servants or agents, when disclosing such information to either the Scottish Parliament or the United Kingdom Parliament it is recognised and agreed by both parties that the Purchaser shall if the Purchaser sees fit disclose such information but is unable to impose any restrictions upon the information that the Purchaser provides to Members of the Scottish Parliament, (MSP’s) or Members of the United Kingdom Parliament (MP’s). Such disclosure shall not be treated as a breach of this agreement.

16.3The provisions of this Condition 16 shall apply during the continuance of this Contract and after its termination howsoever arising.

17. TERMINATION17.1The Supplier shall notify the Purchaser in writing immediately upon the occurrence of any of the following

events:

(a) where the Supplier is an individual and if a petition is presented for the Supplier's bankruptcy or the sequestration of the Supplier’s estate or a criminal bankruptcy order is made against the Supplier, or the Supplier is apparently insolvent, or makes any composition or arrangement with or for the benefit of creditors, or makes any conveyance or assignation for the benefit of creditors, or if an administrator or trustee is appointed to manage the Supplier’s affairs; or

(b) where the Supplier is not an individual but is a firm, or a number of persons acting together in any capacity, if any event in (a) or (c) of this Condition occurs in respect of the firm or any partner in the firm or any of those persons or a petition is presented for the Supplier to be wound up as an unregistered company; or

(c) where the Supplier is a company, if the company passes a resolution for winding-up of dissolution (otherwise than for the purposes of and followed by an amalgamation or reconstruction) or the court makes an administration order or a winding-up order, or the company makes a composition or arrangement with its creditors, or an administrator, administrative receiver, receiver or manager is appointed by a creditor or by the court, or possession is taken of any of its property under the terms of a floating charge.

17.2On the occurrence of any of the events described in Condition 17.1 or, if the Supplier shall have committed a material breach of this Contract and (if such breach is capable of remedy) shall have failed to remedy such breach within 30 days of being required by the Purchaser in writing to do so or, where the Supplier is an individual if the Supplier shall die or be adjudged incapable of managing his or her affairs within the meaning of Part VII of the Mental Health Act 1983 or of Part V of the Mental Health (Scotland) Act 1984, the Purchaser shall be entitled to terminate this Contract by notice to the Supplier with immediate effect. Thereupon, without prejudice to any other of the Purchaser’s rights, the Purchaser may complete the Services or have them completed by a third party, using for that purpose (making a fair and proper allowance therefore in any payment subsequently made to the Supplier) all materials, plant and equipment on the Premises belonging to the Supplier, and the Purchaser shall not be liable to make any further payment to the Supplier until the Services have been completed in accordance with the requirements of the Contract, and shall be entitled to deduct from any amount due to the Supplier the costs thereof incurred by the Purchaser (including the Purchaser's own costs). If the total cost to the Purchaser exceeds the amount (if any) due to the Supplier, the difference shall be recoverable by the Purchaser from the Supplier.

17.3In addition to the Purchaser’s rights of termination under Condition 17.2, the Purchaser shall be entitled to terminate this Contract by giving to the Supplier not less than 30 days notice to that effect.

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17.4Termination under Condition 16.2 or 16.3 shall not prejudice or affect any right of action or remedy which shall have accrued or shall thereupon accrue to the Purchaser and shall not affect the continued operation of Conditions 13 and 16.

17.5The Purchaser may terminate this Contract at any time on sixty days’ written notice. In such an event, the Supplier shall be entitled to receive payment in respect of all fees due up to and including the date of termination and such reasonable costs as the Supplier may incur in bringing the services to an end in an expeditious and timely manner.

17.6If the Supplier shall be in breach of any of its obligations under the Contract, or shall have a receiving order made against it (or shall become insolvent) then the Purchaser may terminate this Contract forthwith and the Supplier shall be entitled to receive payment of all fees due up to and including the date of termination, subject to the deduction of any reasonable costs incurred by the Purchaser by reason of or resulting in the termination.

18. RECOVERY OF SUMS DUEWherever under this Contract any sum of money is recoverable from or payable by the Supplier, that sum may be deducted from any sum then due, or which at any later time may become due, to the Supplier under this Contract or under any other agreement or contract with the Purchaser.

19. ASSIGNATION AND SUB-CONTRACTING19.1The Supplier shall not assign or sub-contract any portion of the Contract without the prior written consent of the

Purchaser. Sub-contracting any part of the Contract shall not relieve the Supplier of any obligation or duty attributable to the Supplier under the Contract or these Conditions.

19.2Where the Purchaser has consented to the placing of sub-contracts, copies of each sub-contract shall be sent by the Supplier to the Purchaser immediately it is issued.

19.3Where the Supplier enters a sub-contract with a supplier or contractor for the purpose of performing the Contract, he shall cause a term to be included in such sub-contract which requires payment to be made to the supplier or contractor within a specified period not exceeding 30 days from receipt of a valid invoice as defined by the sub-contract requirements.

20. NOTICESAny notice given under or pursuant to the Contract may be sent by hand or by post or by registered post or by the recorded delivery service or transmitted by telex, telemessage facsimile transmission or other means of telecommunication resulting in the receipt of a written communication in permanent form and if so sent or transmitted to the address of the party shown on the Purchase Order, or to such other address as the party may by notice to the other have substituted therefore, shall be deemed effectively given on the day when in the ordinary course of the means of transmission it would first be received by the addressee in normal business hours.

21. ARBITRATIONAll disputes, differences or questions between the parties to the Contract with respect to any matter or thing arising out of or relating to the Contract, other than a matter or thing as to which the decision of the Purchaser is under the Contract to be final and conclusive, and except to the extent to which special provision for arbitration is made elsewhere in the Contract, shall be referred to a single arbiter to be mutually chosen by the parties or, failing agreement, nominated by the President of the Law Society of Scotland for the time being on the application of either party. Any such reference to arbitration shall be deemed to be an agreement to refer to arbitration within the meaning of the Arbitration (Scotland) Act 1894.

22. DATA PROTECTION ACT 1998 (“the DPA”)22.1 The Supplier shall not unless with the prior written authority of the Purchaser use, divulge or communicate to any

person or persons (other than those whose province it is to know the same for the purposes of the provision of the supply of goods and any related services, any personal data disclosed to the Supplier or by the Purchaser which personal data the Supplier shall at all times treat as private and confidential and safeguard in a manner consistent with the Purchaser’s duties under the DPA;

22.2 The Supplier shall at its own volition ensure and require, by separate written agreement if necessary (including when called upon to do so by the Purchaser), that its employees, agents, sub-contractors and any third parties to whom personal data is disclosed in accordance with paragraph 22.1 above are aware of and comply with the DPA duties referred to in said paragraph 22.1;

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22.3The Supplier warrants that it will take appropriate technical and organisational measures to prevent unauthorised or unlawful processing of personal data as well as accidental loss or destruction of or damage to personal data whether by itself or by its employees, agents, sub-contractors or third parties to whom personal data is disclosed in accordance with said paragraph 22.1;

22.4 For the avoidance of doubt, the obligations of confidentiality and non-disclosure imposed on the Supplier, its employees, agents, sub-contractors and third parties by the Contract shall continue in full force and effect after the expiry or termination of any contract obliging the Contractor to supply services to the Purchaser for so long as the Purchaser has a duty in terms of the DPA to protect personal data disclosed in accordance with said paragraph 22.1.

23. HEADINGSThe headings to Conditions shall not affect their interpretation.

24. GOVERNING LAWThese Conditions shall be governed by and construed in accordance with Scottish law and the Supplier hereby irrevocably submits to the jurisdiction of the Scottish courts. The submission to such jurisdiction shall not (and shall not be construed so as to) limit the right of the Purchaser to take proceedings against the Supplier in any other court of competent jurisdiction, nor shall the taking of proceedings in any one or more jurisdictions preclude the taking of proceedings in any other jurisdiction, whether concurrently or not.

SUPPLEMENTARY NOTICE

1.

PROTECTING THE ENVIRONMENT 2.

LATE PAYMENT OF INVOICES

Suppliers to Scottish Borders Council are requested to satisfy themselves that no product will be supplied or used in the Supply of Goods to the Purchaser which will endanger the health of the consumers or others, will cause significant damage to the environment during manufacture, use, or disposal, which consumes a disproportionate amount of energy during manufacture, use, or disposal, which causes unnecessary waste because of over-packaging or because of an unusually short shelf life, or which contains materials derived from threatened species or threatened environments.

Suppliers to Scottish Borders Council are requested to address complaints regarding late payment of invoices to, in the first instance, Accounts Payable, Finance Section, Scottish Borders Council, Council Headquarters, Newtown St Boswells, TD6 0SA, Telephone 01835 82 4000, and, in the second instance the addressee of the invoice. This procedure is suggested as the best practical way of ensuring problems of late payment are resolved, and is not intended to interfere with Suppliers' legal rights.

THIS NOTICE DOES NOT FORM PART OF THE CONDITIONS OF CONTRACT

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Schedule 7

INFORMATION TO BE PROVIDED IN THE TENDER RESPONSE

1 Response Document1.1 The response to the details provided here will form part of the scoring of tenders.

1.2 The tender and all requested enclosures must be submitted in the English language.

1.3 Tenderers may use their own text creation facilities. However the content and layout must be identical to the Council version of the relevant sections of the tender, and it must be in the same order.

1.4 All Charges entered in the Pricing Schedule must be shown in Pounds Sterling and entered exclusive of VAT. The Contractor(s) will be paid in Pounds Sterling.

1.5 The tender submission must be uploaded to the Public Contracts Scotland Portal prior to the tender deadline time and date specified – in this case prior to Friday 18th April 2014 at 2.p.m.

2 IN ADDITION, TENDERERS MUST NOTE THAT:2.1 tenderers applying using a nominated Sub-Contractor(s) or as a consortium (with

or without Sub-Contractors) must: ensure that the nominated lead organisation includes all organisations in their

response to the questions below

2.2 tenderers applying using a nominated Sub-Contractor(s) or as a consortium (with or without Sub-Contractors) must clearly indicate in their response (against the relevant questions): which segment of the service will be delivered by each member; how the organisations will collaborate effectively and ensure a seamless approach to

delivery of the service; and the mechanism by which quality issues, monitoring and evaluation issues, disputes

or disagreements will be agreed and resolved

2.3 tenderers must submit the following documents in their tender:o completed Form of Tender (Schedule 9)o tenderers contact details & technical response covering Parts A – C (Schedule 9)o completed Pricing Schedule (Schedule 10)o completed Parent Company Guarantee [where applicable] (Schedule 11)o completed FOI statement [where applicable] (Schedule 12)o completed Non Collusion Schedule (Schedule 13)

2.4 The information provided by tenderers in response to Schedule 9 will be used to technically evaluate tenders, except where stated that the information provided is for information purposes. The response to the Pricing Schedule (Schedule 10) will be used to evaluate the price element of tenders.

2.5 If successful in being awarded the Contract, some or all of the information contained within individual tender responses may also be included in a guidance document to be produced by SBC and/or used in any marketing information connected with the Contract.

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3 Technical Questions - Response Format3.1 The responses provided to each of the sections and questions detailed in the following

pages will be scored in accordance with the Scoring Mechanism outlined in Appendix 1. The Weighted Quality scores obtained for each section will be added to the Price Score to obtain the Overall Score.

Quality Evaluation = 85% of Overall Score

3.2 Please complete all the green boxes in the following tables/schedules. The questions all relate to your proposed service solution to deliver the requirements outlined in Schedule 3.

3.3. Scores will be weighted according to the percentage specified in brackets for each criteria shown.

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Schedule 8FORM OF TENDER

(* DELETE AS APPROPRIATE)

*I/We the undersigned do hereby contract and agree on the acceptance of the tender by SBC, to provide the Statement of Requirements in accordance with the Schedules, and, where ordered by the Contract, delivery of the Contract and at the Charges entered in the Pricing Schedule and in accordance with the Terms & Conditions which appear in this set of documents.

*I/We the undersigned undertake to submit a tender in accordance with the following documents:

1 This Invitation to Tender;

2 Schedule 1 - Instructions & Information for Tenderers

3 Schedule 2 - Parties Accessing and Calling from the Contract

4 Schedule 3 - Statement of Requirements

5 Schedule 4 – Information Relating to Staff Transfers (TUPE);

6 Schedule 5 - Monitoring Schedule;

7 Schedule 6 – Terms & Conditions;

8 Schedule 7 – Information to be Provided in the Tender Response;

9 Schedule 8 (a) – (b) – Form of Tender;

10 Schedule 9 – Pricing Schedule;

11 Schedule 10 - Parent Company Guarantee (or bond) (for tenderer completion where appropriate)

12 Schedule 11 – Freedom of Information Schedule; (for tenderer completion where appropriate)

13 Schedule 12 – Non-Collusion Tendering Certificate;

14 Appendix 1 - Scoring

15 Appendix 2 – Suppliers Tender Return Checklist

*I/We agree to abide by this tender from 2pm on the date fixed for receiving tenders (16th April 2014), until the award of the Contract.

*I/We understand that SBC are not bound to accept the lowest or any tender and shall not be bound to use the Provider as a sole supplier.

*I/We understand that the Contract will commence on 2nd June 2014 and end on 1st

June 2019 or the Contract is terminated in accordance with the provision of the Terms and Conditions.

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Signature:

Name: (BLOCK CAPITALS)

Designation:

Duly authorised to sign Tenders for and on behalf of:

Name of Tenderer

Nature of Firm

Address

Telephone No

E-mail

Date

It must be clearly shown whether the Tenderer is a limited liability company, statutory corporation, partnership, or single individual trading under his own name.

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Schedule 8 (a)

RESPONSE DOCUMENT

1. ORGANISATIONAL BACKGROUND INFORMATION - PART A

1.1 Tenderer Details – Your Organisations Background InformationPlease insert, and return with your submission, the following background information:

1.1.1 Please complete the following section which covers commercial information regarding your organisation.

1.2 Organisations Details

Name of Organisation

Address for all correspondence

Contact Name

Contact Position

Telephone Number

Fax Number

E-mail address

Website address (if applicable)

Address of Registered Office (If applicable)

Nature of Organisation (E.g. Plc, Partnership etc).

Number of Employees

Names of the Directors or Partners

GroupIf the Organisation is a Member of a Group of Companies, please give the name and address of the ultimate parent company.

Company Registration Number(or alternative EU registration number).

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VAT Registration Number(or alternative EU registration number).

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Schedule 8 (b)

RESPONSE DOCUMENT

3 TECHNICAL QUESTIONS – PART C

3.1.1 Suppliers are invited to submit a response to this (ITT) in the format detailed below.

3.1.2 The responses provided to each of the following sections and questions will be scored in accordance with the Scoring Mechanism outlined in Appendix 1. The Weighted Quality scores obtained for each section will be added to the Price Score to obtain the Overall Score.

Quality Evaluation = 85% of Overall Score:

3.1.3 SequenceYour proposal should adopt the following format and should take into account the overall evaluation criteria outlined in Schedule 1 at 18.4.

Each of the responses to the questions raised in the table below will be scored anywhere between 0 – 4 by the evaluation panel to arrive at a total Quality score for each submission.

The quality scoring matrix table being used can be found in the embedded Excel Spreadsheet:

Your response to each question should be brief and succinct and where more expansive information is required the response provided should not exceed more than 500 words per question.

4.1 General Information

(Overall Section Weighting – For Information Only)4.1.1 Please provide the name of the proposed product. For Information Only

Please Insert Your Own Narrative

4.1.2 Please provide the launch date of the proposed product. For Information OnlyPlease Insert Your Own Narrative

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4.1.3 Please provide details of the fund structure of proposed product (Segregated, OEIC, Unit Trust, etc)

For Information Only

Please Insert Your Own Narrative

4.1.4 Please provide details of the Liquidity of proposed product (daily, weekly, etc) For Information Only

4.1.5 What is the benchmark of your proposed product? For Information Only

4.1.6 What is the performance target in absolute terms and/or relative to the benchmark for your proposed product?

For Information Only

4.1.7 Can you state what the service standards that will underpin the management of the mandate, including demonstrating that you are able to meet the requirements set out in the previous Schedules.

For Information Only

4.1.8 Please attach a copy of the last AAF1/06 Annual Report (or equivalent) to your tender submission to demonstrate the required compliance.

For Information Only

4.1.9 Please can you confirm that no conflict of interest would arise if you were successful in being awarded the contract.

Yes No

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Please complete the relevant portfolio management team (and client team) information for the proposed product in the following tables.

4.2 B1 – Project Team Structure & Resources Directly Involved and Commissioning the Service(Overall Section Weighting Score 18%)

4.2.1 What are your firm’s business objectives with regard to the management and size of your proposed product?

Weighting8

Please Insert Your Own Narrative

4.2.2 Please can you complete the following table, in million GBP, unless otherwise stated (to 31 December) for your proposed product.

Weighting10

2014 2015 2016 2017 2018 2019Total Equity AUM (£m)Split by retail clients (%)Split by institutional clients (%)% of your firm’s total equity AUM invested in proposed product

4.2.3 What is the proposed product’s capacity? Weighting3

Please Insert Your Own Narrative

4.2.4 Portfolio management and client teams basic details for proposed product (please extend table if necessary)

Weighting8

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Name Function Education / Professional

Time within (since MM/YYYY)

Previous Relevant Experience

% of time spent on

Present Position Team

This asset class

This product

Other asset

classes

Other duties

Scottish Borders Council Portfoli

o

4.2.5 Personnel turnover within proposed product’s team Weighting9

Gained team members Lost team members Number of team members as at 31 December

In 2011 In 2012 In 2013 In 2011 In 2012 In 2013 In 2011 In 2012 In 2013Portfolio

ManagersAnalysts

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Client Relationship

4.2.6 How is the bonus for investment professionals in the team managing the proposed product calculated?

(indicate by inserting “X” in relevant boxes)

Weighting4

Company profit Business unit profit

Product related Absolute return Relative return Other N/A

4.2.7 How many researchers are dedicated to the proposed product, or indirectly involved, in research for the proposed product?

Dedicated Indirectly involved

Weighting7

4.2.8 How many of the researchers dedicated to the proposed product, or indirectly involved, are based in the UK and overseas?

Dedicated Indirectly involved

Weighting3

4.2.9 What proportion of research for the proposed product is generated internally? Please also list the main external sources of research you use?

Weighting8

Generated internally (%)

External sources

1 2 3 4 5 6

4.2.10 How do you assess the strength of company management? Weighting10

Please Insert Your Own Narrative

4.2.11 How are the researchers dedicated, or indirectly involved, in research for the proposed product located (eg UK or overseas) and organised (eg by sector, region, etc). Are they

Weighting10

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rotated?Please Insert Your Own Narrative

4.2.12 Are the researchers dedicated, or indirectly involved, in research for the proposed product career analysts or trainee fund managers, and why?

Weighting10

Please Insert Your Own Narrative

4.2.13 How do you effectively cover the stocks within the market for the proposed product, including how you use screening methods?

Weighting10

Please Insert Your Own Narrative

4.3 B2 – Investment Management Process & Performance(Overall Section Weighted Score 54%)

4.3.1 What is your proposed product’s investment process/philosophy?(Please limit your answer to 300 words)

Weighting13

Please Insert Your Own Narrative

4.3.2 When was the investment process implemented? (YYYY) Weighting2

4.3.3 When was the investment process last amended? (YYYY) Weighting7

What were the changes made?

Please Insert Your Own Narrative

4.3.4 Is the investment process documented? Yes No Weighting

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24.3.5 What is your proposed product’s key features and competitive advantage in your view?

(Please limit your answer to 100 words)Weighting

6Please Insert Your Own Narrative

4.3.6 Do you separate the portfolio management role and the analyst role?

Yes No Weighting2

Do analysts meet with company management? Yes No

If yes, how many meetings on average does an analyst have with companies per quarter?(insert “X” in relevant box)

1 to 10 11 to 20 21 to 30 31 to 40 41 to 50 50 plus

If yes, how many meeting were carried out in total over 2011, 2012 and 2013?

2011 2012 2013

4.3.7 What criteria are used to assess companies? Weighting4

Please Insert Your Own Narrative

4.3.8 Are explicit price targets generally prepared as part of the research process:(Insert “X” in relevant box)

No The majority of the time

Always Weighting1

4.3.9 Please provide us with actual Annual Turnover ratio figures for each of the following years, ending 31 December (where Annual Turnover ratio = (Purchases + Sales)/Average Market Value)*100)

Weighting1

2010 2011 2012 2013

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4.3.10(a) Please provide a description of how analysts recommendations are evaluated.(Please limit your answer to 200 words)

Weighting4

Please Insert Your Own Narrative

4.3.10(b) Within your analysis process, does the individual analyst have freedom in choosing characteristics, tools and models when analysing a security?

Yes No

If yes, please explain how this freedom is used.Please Insert Your Own Narrative

INVESTMENT OBJECTIVES:

4.3.11 What is the ultimate objective for the management of the portfolio? Weighting4

Please Insert Your Own Narrative

Please can you specify the investment horizon for your proposed product (in years)?Years

4.3.12Which market conditions do you view as being optimal to the success of your investment

approach?

(Please limit your answer to 70 words)

Weighting3

Please Insert Your Own Narrative

4.3.13Which market conditions do you expect your product to under perform its benchmark

(Please limit your answer to 70 words)

Weighting3

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Please Insert Your Own Narrative

4.3.14The response to the following information does not attract an individual score, however it will be used to interpret and analyse other information provided as part of the performance assessment (Section B2) of the proposed fund and will attract an overall score of 5

Weighting5

Over what period should your performance be measured?

(indicate unit of time period measurement e.g. years./months)How is the absolute return target or excess return target detailed in 4.1.6 broken down by contribution from

(insert “X” in relevant box)

Regional allocation

Sector allocation Stock selection

Please indicate the degree of attention paid to the benchmark with regard to portfolio construction

1 - No attention paid

2 - Benchmark aware

3 - benchmark driven

If the benchmark has been changed during the past 48 months, please state the date(s) otherwise indicate N/A for Not Applicable.

(MM YYYY)

If the benchmark has been changed during the past 48 months, please state the reason(s)

(insert “X” in relevant box)

New benchmark gives a better reflection of

process

Change in investment

processOther N/A

What is your Tracking Error target? Value - please

specify Not specified N/A

What is your minimum Tracking Error? Value - please specify Not specified N/A

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What is your maximum Tracking Error?Value - please

specify Not specified N/A

PORTFOLIO STYLE/CHARACTERISTICS:

4.3.15The response to the following information does not attract an individual score, however it will be used to interpret and analyse other information provided as part of the performance assessment (Section B2) of the proposed fund and will attract an overall score of 2

Weighting2

Please indicate the Portfolio style in terms of Top-down / Bottom up bias

1 – Top Down Entirely

2 – A Mixture of Top Down, Bottom Up

3 – Bottom Up Entirely

Please indicate the Portfolio style in terms of Value / Growth bias. (insert “X” in relevant box)

1 - deep value

2 - relative value 3 – blend 4 – GARP 5 - deep

growth

Please indicate the Portfolio style in terms of Large Cap / Small Cap bias (insert “X” in relevant box)

No bias 1 - large cap 2 - mid cap 3 - small cap

4.3.16 Please provide the total number of holdings as at: Weighting2

31-Dec-10 31-Dec-11 31-Dec-12 31-Dec-13 

     4.3.17 Please indicate the maximum cash allocation within the product %

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guidelines (%).Weighting

2

4.3.18Please provide any internal guidelines in place in respect of portfolio construction e.g. country allocation, industry/sector allocation, currency. Weighting

2

Please Insert Your Own Narrative

4.3.19 Is there a model portfolio for the product?Yes No Weighting

2

If yes, is there a target level of commonality with the model?Under 50% 50 - 75% 75 - 100%

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ENVIROMENTAL, SOCIAL AND GOVERNANCE

4.3.20 How is your analysis of ESG issues and the outcome of any engagement activities incorporated into investment decision making?

Weighting3

Please Insert Your Own Narrative

4.3.21Please list some examples of the 'extra-financial' risks and opportunities that you would consider in the investment decision-making process, in addition to purely financial (e.g. balance sheet or income statement) investment factors.

Weighting3

Please Insert Your Own Narrative

4.3.22

What is your 'default position' for voting (e.g. vote with management; follow client recommendation; don't vote)?

Does your default position vary for different geographical regions?

Weighting2

What is your 'default position' for voting (e.g. vote with management; follow client recommendation; don't vote)?

(Insert “X” in relevant box)

Vote with Management

Follow Client Recommendation Don’t Vote

Does your default position vary for different geographical regions?

(Insert “X” in relevant box)

Yes No N/A

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PRODUCT PERFORMANCE

4.3.23Please fill in the following table with the proposed product's absolute performance, benchmark figures and relative performance.

(Performance should be net of fees, in GBP).

Weighting18

  2008 2009 2010 2011 2012 20133 Yrs (p.a.) to 31/12/2013

5 Yrs (p.a.) to 31/12/2013

Fund Return                Benchmark Return(if applicable)                Relative Return                Fund Return Volatility                Benchmark Return Volatility                Information Ratio                

4.3.24 Please fill in the following table, showing attribution of performance for each year, broken down into the relevant sections

Weighting7

  2008 2009 2010 2011 2012 20133 Yrs (p.a.) to 31/12/2013

5 Yrs (p.a.) to 31/12/2013

Relative Return                               

Contribution from                Regional allocation                Security selection                Currency interaction                

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4.4B3 – Compliance & Risk Management

(Overall Section Weighted Score 13%)

4.4.1Is there a separate compliance function?

(Insert “X” in relevant box)

Yes No Weighting4

If yes, please give details as follows:

Number of full-time individuals in

team

Average years experience of the team

members

4.4.2

Does the compliance system automatically identify and prevent any restriction breaches, as determined by the client/manager, before a trade is executed?

(Insert “X” in relevant box)

Yes No

Weighting2

4.4.3

What systems and procedures are in place to ensure that portfolios conform to client guidelines and the proposed product's adopted investment strategy and stated risk parameters?

(Max 350 words)

Weighting17

Please Insert Your Own Narrative

4.4.4When was the last client portfolio breach for the proposed product?

What was it, how was it discovered and what remedies were taken?

Weighting8

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Please Insert Your Own Narrative

4.4.5Is there a central research database?

(Insert “X” in relevant box)

Yes No Weighting2

4.4.6Do portfolio managers have access to live portfolios on their desktops?

(Insert “X” in relevant box)

Yes NoWeighting

2

4.4.7Do portfolio managers have access to risk tools on their desktops?

(Insert “X” in relevant box)

Yes NoWeighting

2

4.4.8Disaster Recovery Plan: How long would it take for critical functions to be re-established at a remote site?

(Insert “X” in relevant box)

Weighting2

N/A 24 Hours 2 Days 4 Days One week

      

 

4.4.9 Please can you provide details of how (and what) critical functions will be re-established? Weighting8

Please Insert Your Own Narrative

4.4.10 What system support do you have for 1 – Manual 2 – Manual 3 – Fully Weighting

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Financial risk measurement?

(Insert “X” in relevant box)

Checks Checks & Integration

Integrated into System 4

4.4.11

Please state who is responsible for risk measurement within portfolios and then describe the risk measurement process.

(Insert “X” in relevant box)

Portfolio Manager

Separate function

Portfolio Manager and

Separate function

Weighting4Please

Insert Your Own Narrative

4.4.12The response to the following information does not attract an individual score, however it will be used to interpret and analyse other information provided as part of the performance assessment (Section B3) of the proposed fund and will attract an overall score of 3

Weighting3

If applicable, how frequently do the portfolio manager and separate function meet to discuss portfolio risk?

(Insert “X” in relevant box)

Daily Weekly Biweekly Monthly Less Frequent than Monthly

        

If applicable, does the separate function get involved in portfolio construction?

(Insert “X” in relevant box)

Vote with Management

Follow Client Recommendation Don’t Vote

How is downside risk assessed?

(Insert “X” in relevant box)

In absolute terms

Relative to benchmark

Other (please specify)

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4.4.13 How long have the current risk controls been in place? (since MM YYYY)

Weighting4

4.4.14

Please summarise any enhancements/changes to the risk process implemented over the last 24 months? Weighting

5

Please Insert Your Own Narrative

4.4.15 What risk analysis tools are used (please list)? Weighting8

Please Insert Your Own Narrative

4.4.16

Please explain how scenario analysis used in order to assess the impact of portfolio construction decisions on portfolio risk?

Weighting3

Please Insert Your Own Narrative

4.4.17Do you use derivatives within the fund?

(Insert “X” in relevant box)

Yes No Weighting4

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If yes, please state what derivatives are used for.

Please Insert Your Own Narrative

Please give a list of the derivative types you typically use in the portfolio.Please Insert Your Own Narrative

4.4.18 How do you manage currency risk in the fund? Weighting5

Please Insert Your Own Narrative

4.4.19 Do you offer currency a currency hedged version of your fund / strategy or a currency hedging service? If so, please give details.

Weighting4

Please Insert Your Own Narrative

4.4.20How many days (on average) would it take to liquidate 95% and 100% of the portfolio?

(Insert “X” in relevant box)

95% 100%Weighting

5

4.4.21Is your company AIMR/GIPS compliant?

(Insert “X” in relevant box)

Yes No Weighting2

4.4.22 Do you outsource your middle/back office operations? Yes No Weighting

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(Insert “X” in relevant box) 2

If yes, please specify where and how these arrangements are managed.

Please Insert Your Own Narrative

4.5B4 – Customer Services(Overall Section Weighted Score 5%)

4.5.1

Provide details regarding the availability of the Key Personnel undertaking the contact and liaison and the fund management roles, and the mechanism(s) by which information and advice will be given to both Officers of the Council and the Pension Fund Sub-Committee.

Please ensure that you indicate how often you would expect the Pension Fund Sub-Committee to meet with the fund manager

Weighting12

Please Insert Your Own Narrative

4.5.2 State how your organisation will cater for any change in Key Personnel, especially the Investment Manager/Account Manager, to ensure no disruption to the provision of the service

Weighting3

Please Insert Your Own Narrative

4.5.3 Please attach in an Appendix to this Tender Submission, examples of the proposed reports to investors that will meet the minimum reporting requirements set out in Schedule 5.

Weighting35

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For the purpose of clarity please confirm that you will be able to meet the minimum reporting requirements as set out in Schedule 5 by inserting an ”X” in this box.

4.5.4 Please identify what additional information you propose to supply and on what frequency they will be made available.

Weighting15

Please Insert Your Own Narrative

4.5.5Is there the capability to access and download portfolio information via an internet login?

(insert “X” in relevant box)

Yes NoWeighting

13

If yes, please specify what information will be available via this mechanism.

Please Insert Your Own Narrative

4.5.6What is your view on providing training to Scottish Borders Council Pension Fund Sub-Committee and guidance on other relevant issues? Weighting

10

Please Insert Your Own Narrative4.5.7 Who is the custodian of your pooled fund?

Do you currently work with JP Morgan, Scottish Borders Council's current custodian?

Weighting5

JPM experience Yes

JPM experience No

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(insert “X” in relevant box)

4.5.8

Provide a copy of your complaints and dispute resolution procedure.

State in your response how awareness will be raised of the existence of the complaints and dispute resolution procedure and how it will be made accessible at all times

Weighting7

Please Insert Your Own Narrative

4.6 B5 – Supplier Presentation(Overall Section Weighted Score 10%)

4.6.1 Presentation of mock six monthly performance update including reporting. Weighting10

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Schedule 9PRICING SCHEDULE

Tender for: High Alpha or Unconstrained Global Equities Investment ManagerReference: SBC/CPS/805

Insert Name of Tenderer: .................................................................................

This completed Schedule 9 should be submitted as a separate document.1. PRICE FOR THE SERVICES1.1 All prices and rates shall be quoted in Pounds Sterling. Value Added Tax (VAT) shall

not be included in the price and shall be shown separately. All prices and rates shall be fully inclusive of all service costs and all other costs necessary to fulfil the compliance requirements in accordance with the Statement of Requirements (Schedule 3).

1.2 The Authority shall pay to the Provider the prices, which will be subject to the satisfactory delivery of the services described in the Statement of Requirements (Schedule 3), and in accordance with the provisions of the Contract.

1.3 The prices shall be fully inclusive of all the necessary costs for provision of the services.

1.4 Tenderers are required to complete the tables below in the Tender Pricing (Schedule 9). These tables will be the basis of the Price evaluation.

1.5 All prices submitted shall be inclusive of reasonable travel and subsistence (including all printing, photocopying, travel (by rail or vehicle mileage), facsimile, courier services, subsistence, hotel charges, postage, photographs, telephone calls, extraordinary materials costs and other relevant disbursements).

1.6 Please also provide information on any areas for maximising value for money. Items could include, for example:

Early Invoice Settlement Terms Consolidated Invoices Use of e-commerce etc

1.7 Please note, any additional costs incurred, which are not reflected in the Tender submission will not be accepted for payment.

1.8 All prices submitted in this tender are to remain valid for acceptance until the award of the contract and for the duration of any contract awarded.

2. VARIATION IN THE CHARGES2.1 All prices quoted shall hold firm for the duration of the contract.

3. INVOICING & PAYMENT3.1 The Contractor will be required to submit invoices monthly in arrears for work in

accordance with the Terms & Conditions which will be approved and signed off by the Project Director. Value Added Tax, where applicable, shall be shown separately on all

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invoices. Each invoice shall be uniquely identified and shall specify the following minimum information:

Purchase Order number Contract title & reference number Deliverable details Charges and total due including a deduction for any applicable discounts Total value excluding VAT

3.2 Payments will be made to the Contractor, within 30 days of receipt of a valid invoice, in arrears related to the satisfactory completion of the agreed work outputs listed in Schedule 3.

3.3 SBC pays all suppliers by Bankers' Automated Clearing Services (BACS).  This is a scheme for the electronic processing of financial transactions.  To avoid delayed payments, please ensure that you return your bank details to the Council's Finance Department when you receive a request to do so.

4. FEE PROPOSAL

4.1 The format of the pricing schedule, as set by Scottish Borders Council, should not be altered by the Tenderer. All tenderers prices and any payments under a resulting contract shall be in pounds sterling. Tendered prices shall be exclusive of VAT.

4.2 Prices must be broken down to reflect all the component parts required to make up the product or service as specified (e.g. the travel costs, hourly rates)

4.3 Prices must clearly show VAT separately.

4.4 Price Schedule Table

4.4.1 Please detail fully your price schedule based on your tender inserting details in the sections of the following table.

4.4.2 All prices quoted must be inclusive of any and all charges likely to be incurred by the contractor/supplier in the completion of this project.

Pricing Schedule - This pricing schedule makes up 15% of the evaluation criteria.

4.5 Fee Scale

4.5.1 The overall pricing evaluation will take into account the following 3 areas: Fee Scale Other Sources of Revenue

Maximum Weighted Score on Price achievable is 15%.

WeightingDetailed Breakdown of Fees

(Fees excl of VAT)

(to be completed by tenderer)Please specify the Fee Scale you would propose for this mandate.

Max Score85

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Will a minimum fee apply?

(Insert “X” in relevant box)

Yes No

If yes, please specify

Is this Fee structure guaranteed for the life of the Contract?

(Insert “X” in relevant box)

Max Score10

Yes No

If No, please state how you would propose varying the Fee structure during the life of the contract

Other Sources of Revenue

Do you receive any other sources of revenue e.g stock lending, commission on the proposed product? (Insert “X” in relevant box)

Max Score5

Yes No

If yes, please provide details

4.6 Price/Fee Evaluation

4.6.1 The fee element will be scored as follows:

Fee scale – The lowest fee will receive the highest scoring of 85 and then the rest will be prorated.

Guaranteed fee structure – If the fee is guaranteed for the entire period it will received the top score of 10 and if not then it will receive no score.

Other sources of revenue – If other sources of revenue then top score of 5 but if not then no score.

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Schedule 10PARENT COMPANY GUARANTEE

NOTE to Tenderer:

1. The Parent Company Guarantee is only to be completed if your organisation is a private or public company and the Tenderer is a subsidiary company. A completed Parent Company Guarantee is also required for any subsidiary company members from a consortium.

SBC require an undertaking, that your parent company will meet all your obligations under the Contract should you fail to do so.

(Completion to be arranged by the Tenderer)

2. We refer to the Tender for the above by (insert name of Tenderer) of which we are the ultimate holding company, and hereby undertake that in the event of SBC accepting the Tender and thereby entering into a Contract with (insert name of Tenderer) we shall, in security of their obligations thereunder guarantee the same in the following manner:-

2.1. We guarantee that (insert name of Tenderer) shall perform all its obligations contained in the Contract.

2.2. If (insert name of Tenderer) shall in any respect fail to perform its obligations under the Contract or shall commit any breach thereof, we undertake, on simple demand by SBC, to perform or to take whatever steps may be necessary to achieve performance of said obligations under the Contract and shall indemnify and keep indemnified SBC against any loss, damages, claims, costs and expenses which may be incurred by him by reason of any such failure or breach on the part of (insert name of Tenderer).

2.3. Our guarantee and undertakings hereunder shall be unconditional and irrevocable, and without prejudice to the foregoing generality we shall not be released or discharged from our liability hereunder by:

2.3.1 any waiver or forbearance by SBC of or in respect of any of (insert name of Tenderer) obligations under the Contract whether as to payment, time, performance or otherwise howsoever, or by any failure by SBC to enforce the Contract or this instrument

or

2.3.2 any alteration to, addition to or deletion from the Contract or the scope of the work to be performed under the Contract or

2.3.3 any change in the relationship between ourselves and (insert name of Tenderer) and our guarantee and undertakings shall continue in force

2.3.4 until all (insert name of Tenderer) obligations under the Contract and all our obligations hereunder have been duly performed.

3. This Guarantee shall be construed and take effect in accordance with Scots Law.

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Director DirectorSignatures:

Names (BLOCK CAPS)

Date

Signed for and on behalf of (2 Directors of the Tenderer’s ultimate holding company):

Company

Address

Postcode

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Schedule 11

FREEDOM OF INFORMATION SCHEDULE

We would ask that SBC withhold the following information from release under the Freedom of Information (Scotland) Act 2002/Environmental Information (Scotland) Regulations 2004 as appropriate:

Tender for: High Alpha or Unconstrained Global Equities Investment ManagerReference: SBC/CPS/805

Information Not to be Disclosed

Reason it should not be disclosed

Proposed Time the Restriction Should Apply

For

SIGNATURE: ____________________________________________________DESIGNATION: _________________________________________________NAME OF TENDERER: ___________________________________________DATE: __________________________________________________________

NOTE: THIS CERTIFICATE MUST BE SIGNED AND COMPLETED BY THE TENDERER AND RETURNED WITH THE TENDER SUBMISSION.

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Schedule 12

NON COLLUSION CERTIFICATE

Tender for: High Alpha or Unconstrained Global Equities Investment ManagerReference: SBC/CPS/805

The essence of competitive tendering is that SBC shall receive bona fide competitive tenders from all firms tendering. In recognition of this principle, we certify that this is a bona fide tender, intended to be competitive, and that we have not fixed or adjusted the amount of the tender by or under or in accordance with any agreement or arrangement with any other person. We also certify that we have not done and we undertake that we will not do at any time before the returnable date for this tender any of the following acts:-

(a) communicating to a person other than the person calling for these tenders the amount or approximate amount of the tender herewith submitted;

(b) entering into any agreement or arrangement with any person that he/she shall refrain from tendering or as to the amount of any tender to be submitted; and

(c) offering or paying or giving or agreeing to pay or give any sum of money or consideration directly or indirectly to any person for doing or having done or causing or having caused to be done in relation to any other tender or proposed tender for the said work any act or thing of the sort described above.

In this certificate, the word “person” includes any persons and any body or association, corporate or incorporate; and “any agreement or arrangement” includes any such transaction, formal or informal, whether legally binding or not.

SIGNED

ON BEHALF OF(Name of Tenderer)DATE

NOTE: THIS CERTIFICATE MUST BE SIGNED AND COMPLETED BY THE TENDERER AND RETURNED WITH THE TENDER SUBMISSION

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Appendix 1

SCORING & EVALUATION CRITERIA SCORING MECHANISM

Tender for: High Alpha or Unconstrained Global Equities Investment ManagerReference: SBC/CPS/805

Tender Evaluation Criteria

Each tender will be subject to a technical and financial analysis. The aim of the evaluation is to appoint the tender(s) which represent the best value for money for Scottish Borders Council.

The technical analysis will ensure that tenderers have met the outputs contained in the Statement of Requirements and requirements detailed in the Information to be provided in the Tender Response.

To undertake these analyses, a Price Quality Ratio of 15/85 will be applied during tender evaluation.

Price: 15%Quality: 85%

Quality Evaluation Criteria:

Resource and Experience

B1 – Project Team Structure & Resources directly involved in delivering and commissioning the services

18%

B2 – Investment Manger process and performance 54%

B3 – Compliance & Risk Management 13%

B4 – Customer Services 5%

B5 – Supplier PresentationPresentation of mock 6 monthly performance update including reporting

10%

Scoring Mechanism

The tender will be awarded on the basis of the most economically advantageous tender, quality scores will be weighted as indicated next to the questions in Part B of Schedule 8 and evaluated in accordance with the table below.

Each question will attract a score of between 0 - 4 and evaluated in accordance with the table below:

0Unacceptable

Response is not considered relevant.

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The response is unconvincing, flawed or otherwise unacceptable. Response fails to demonstrate an understanding of the requirement.

1Poor

Response is Partially Relevant and Poor.

The response sufficiently addresses some of the specification output but contains insufficient/limited detail or explanation. The response demonstrates only limited understanding of the requirement. The answer contains ambiguities or deficiencies which could not be tolerated.

2Acceptable

Response is Completely Relevant and Acceptable.

The response meets the majority of the required specification outputs although may lack detail in certain areas. The response demonstrates an overall understanding of the requirement.

3Good

Response is Completely Relevant and Good.

The response meets the specification outputs and is sufficiently detailed to demonstrate a good understanding of the requirement. The proposal may require further development but is considered credible in all areas.

4Excellent

Response is Completely Relevant and Excellent overall.

The response meets or exceeds the specification outputs. The proposal is comprehensive, unambiguous and demonstrates a good understanding of the requirement. The proposal is well thought out, highly credible and may offer added value or innovation.

The quality scoring matrix table being used can be found in the embedded Excel Spreadsheet:

The following table summarises the weighting factor which will be applied to each question when the evaluation team score your response to the questions being asked in the tables within Schedule 8(b):

4.1 General Information Weighting(For Information

Only)4.1.1 Please provide the name of the proposed product. For Information

Only4.1.2 Please provide the launch date of the proposed product. For Information

Only4.1.3 Please provide details of the fund structure of proposed For Information

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product (Segregated, OEIC, Unit Trust, etc) Only4.1.4 Please provide details of the Liquidity of proposed product

(daily, weekly, etc)For Information

Only4.1.5 What is the benchmark of your proposed product? For Information

Only4.1.6 What is the performance target in absolute terms or relative to

the benchmark for your proposed product?For Information

Only4.1.7 Can you state what the service standards that will underpin

the management of the mandate, including demonstrating that you are able to meet the requirements set out in the previous Schedules.

For Information Only

4.1.8 Please attach a copy of the last AAF1/06 Annual Report (or equivalent) to your tender submission demonstrate the required compliance.

For Information Only

4.1.9 Please can you confirm that no conflict of interest would arise if you were successful in being awarded the contract?

For Information Only

4.2 B1 – Project Team Structure and Resources Directly involved in Delivering and Commissioning the Service

Weighting(Section

Weighted Score 18%)

4.2.1 What are your firm’s business objectives with regard to the management and size of you proposed product?

Weighting8

4.2.2 Please can you complete the following table, in million GBP, unless otherwise stated (to 31 December) for your proposed product.

Weighting10

4.2.3 What is the proposed products capacity? Weighting3

4.2.4 Portfolio management and client team’s basic details for proposed product (please extend table if necessary).

Weighting8

4.2.5 Personnel turnover within proposed products team. Weighting9

4.2.6 How is the bonus for investment professionals in the team managing the proposed product calculated?

Weighting4

4.2.7 How many researchers are dedicated to the proposed product, or indirectly involved, in research for the proposed product?

Weighting7

4.2.8 How many of the researchers dedicated to the proposed product, or indirectly involved, are based in the UK and overseas?

Weighting3

4.2.9 What proportion of research for the proposed product is generated internally?

Please also list the main external sources of research you use?

Weighting8

4.2.10 How do you assess the strength of company management? Weighting10

4.2.11 How are the researchers dedicated, or indirectly involved, in research for the proposed product located (eg UK or overseas) and organised (eg by sector, region, etc). Are they rotated?

Weighting10

4.2.12 Are the researchers dedicated, or indirectly involved, in research for the proposed product career analysts or trainee managers, and why?

Weighting10

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4.2.13 How do you effectively cover the stocks within the market for the proposed product, including how you use screening methods?

Weighting10

4.3 B2 – Investment Management Process and Performance Weighting(Section

Weighted Score 54%)

4.3.1 What is your proposed products investment process/philosophy?

Weighting13

4.3.2 When was the investment process implemented? (YYYY) Weighting2

4.3.3 When was the investment process last amended? (YYYY)

What were the changes made?

Weighting7

4.3.4 Is the investment process documented? Weighting2

4.3.5 What is your proposed products key features and competitive advantage in your view?

Weighting6

4.3.6 Do you separate the portfolio management role and the analyst role?

Do analysts meet with company management?

Weighting2

4.3.7 What criteria are used to assess companies? Weighting4

4.3.8 Are explicit price targets generally prepared as part of the research process?

Weighting1

4.3.9 Please provide us with actual Annual Turnover ratio for each of the following years, ending 31 December.

(where Annual Turnover ratio = (Purchases + Sales)/Average Market Value)*100)

Weighting1

4.3.10(a)

Please provide a description of how analyst’s recommendations are evaluated. Weighting

44.3.10(b)

Within your analysis process, does the individual analyst have freedom in choosing characteristics, tools and models when analysing a security?

4.3.11 What is the ultimate objective for the management of the portfolio?

Weighting4

4.3.12 Which market conditions do you view as being optimal to the success of your investment approach?

Weighting3

4.3.13 Which market conditions do you expect your product to under perform its benchmark?

Weighting3

4.3.14 The response to the following information does not attract an individual score, however it will be used to interpret and analyse other information provided as part of the performance assessment (Section B2) of the proposed fund and will attract an overall score of 5.

Weighting5

4.3.15 The response to the following information does not attract an individual score, however it will be used to interpret and analyse other information provided as part of the performance assessment (Section B2) of the proposed fund and will attract an overall score of 2.

Weighting2

4.3.16 Please provide the total number of holdings. Weighting2

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4.3.17 Please indicate the maximum cash allocation within the product guidelines (%)

Weighting2

4.3.18 Please provide any internal guidelines in place in respect of portfolio construction e.g. country allocation, industry/sector allocation, currency.

Weighting2

4.3.19 Is there a model portfolio for the product? Weighting2

4.3.20 How is your analysis of ESG issues and the outcome of any engagement activities incorporated into investment decision making?

Weighting3

4.3.21 Please list some examples of the ‘extra-financial’ risks and opportunities that you would consider in the investment decision-making process, in addition to purely financial (e.g. balance sheet or income statement) investment factors.

Weighting3

4.3.22 What is your ‘default position’ for voting (e.g. vote with management, follow client recommendation; don’t vote)?

Does your default position vary for different geographical regions?

Weighting2

4.3.23 Please fill in the following table with the proposed product’s absolute performance, benchmark figures and relative performance.

(Performance should be net of fees, in GBP).

Weighting18

4.3.24 Please fill in the following table, showing attribution of performance for each year, broken down into the relevant sections.

Weighting7

4.4 B3 – Compliance & Risk Management Weighting(Section

Weighted Score 13%)

4.4.1 Is there a separate compliance function? Weighting4

4.4.2 Does the compliance system automatically identify and prevent any restriction breaches, as determined by the client/manager, before a trade is executed?

Weighting2

4.4.3 What systems and procedures are in place to ensure that portfolios conform to client guidelines and the proposed products adopted investment strategy and stated risk parameters?

Weighting17

4.4.4 When was the last client portfolio breach for the proposed product?

What was it, how was it discovered and what remedies were taken?

Weighting8

4.4.5 Is there a central research database? Weighting2

4.4.6 Do portfolio managers have access to live portfolios on their desktops?

Weighting2

4.4.7 Do portfolio managers have access to risk tools on their desktops?

Weighting2

4.4.8 Disaster Recovery Plan: How long would it take for critical functions to be re-established at a remote site?

Weighting2

4.4.9 Please can you provide details of how (and what) critical Weighting

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functions will be re-established? 84.4.10 What system support do you have for Financial risk

measurement?Weighting

44.4.11 Please state who is responsible for risk measurement within

portfolios.Weighting

44.4.12 The following information does not have an individual score,

however it will be used to interpret and analyse other information provided as part of the performance assessment (Section B3) of the proposed fund.

Weighting3

4.4.13 How long have the current risk controls been in place? (since MM YYYY)

Weighting4

4.4.14 Please summarise any enhancements/changes to the risk process implemented over the last 24 months?

Weighting5

4.4.15 What risk analysis tools are used (please list)? Weighting8

4.4.16 Please explain how scenario analysis used in order to assess the impact of portfolio construction decisions on portfolio risk?

Weighting3

4.4.17 Do you use derivatives within the fund? Weighting4

4.4.18 How do you manage currency risk in the fund? Weighting5

4.4.19 Do you offer currency a currency hedged version of your fund / strategy or a currency hedging service?

If so, please give details.

Weighting4

4.4.20 How many days (on average) would it take to liquidate 95% and 100% of the portfolio?

Weighting5

4.4.21 Is your company AIMR/GIPS compliant? Weighting2

4.4.22 Do you outsource your middle/back office operations? Weighting2

4.5 B5 – Customer Services Weighting (Section Overall Weighted Score

5%)4.5.1 Provide details regarding the availability of the Key Personnel

undertaking the contact and liaison and the fund management roles, and the mechanism(s) by which information and advice will be given to both Officers of the Council and the Pension Fund Sub-Committee.

Please ensure that you indicate how often you would expect the Pension Fund Sub-Committee to meet with the fund manager.

Weighting12

4.5.2 State how your organisation will cater for any change in Key Personnel, especially the Investment Manager/Account Manager, to ensure no disruption to the provision of the service.

Weighting3

4.5.3 Please attach in an Appendix to this Tender Submission, examples of the proposed reports to investors that will meet the minimum reporting requirements set out in Schedule 5.

Weighting35

4.5.4 Please identify what additional information you propose to supply and on what frequency they will be made available.

Weighting15

4.5.5 Is there the capability to access and download portfolio information via an internet login?

Weighting13

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4.5.6 What is your view on providing training to Scottish Borders Council Pension Fund Sub-Committee and guidance on other relevant issues?

Weighting10

4.5.7 Who is the custodian of your pooled fund?

Do you currently work with JP Morgan, Scottish Borders Council’s current custodian?

Weighting5

4.5.8 Provide a copy of your complaints and dispute resolution procedure.

State in your response how awareness will be raised of the existence of the complaints and dispute resolution procedure and how it will be made accessible at all times.

Weighting7

B5 – Supplier Presentation

To be delivered at Scottish Borders Council on the 28th or 29th of April 2014.

Weighting(Section Overall Weighted Score

10%)

Appendix 2

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Tender Return Checklist

For Information only for suppliers prior to uploading submission to Public Contracts Scotland portal:

ElementsCompleted & Enclosed with Submission

Y/NSchedule 8: Parts A – B Tender Questionnaire Response

Schedule 9 – Pricing Schedule

Schedules 10, 11 & 12 – Forms of Agreement (where appropriate)

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