Title
Resolution to Authorize a Professional Services Agreement with Insight North America LLC ($600,000.00)
Memorandum
Attached for your review and approval is a resolution to approve a five-year contract, with two optional one-year extensions, with Insight North America LLC for investment advisory services.
The City issued Request for Proposal (RFP) No. 22-13 in March 2022 for investment advisory services. Responses from five companies were received. A selection committee comprised of Financial staff reviewed and scored the proposals. The firms were evaluated and scored on several criteria:
* Professional Qualifications - 70 points
* Work Plan - 15 points
* Fee Proposal - 15 points
After reviewing and scoring the proposals, staff ranked the responding firms in the following order:
1. Insight North America LLC
2. Meeder
3. Robinson Capital
4. Public Trust
Based on the proposals and fee schedules submitted, the selection committee decided to award a contract to Insight North America LLC.
Insight North America LLC's fee proposal of 5 basis points for the first $150,000,000.00 and 3 basis points thereafter represents an approximate annual cost of $120,000.00, which was calculated on a portfolio of $300,000,000.00. The actual cost may be higher or lower based on the fair value of the investment portfolio. This is significantly less than it would cost the City to hire an investment manager and provide the necessary technology solutions to facilitate in-house investment management. The proposal represents a fee reduction from the existing agreement of 6 basis points or a reduction of approximately $15,000.00 per year.
Insight North America LLC is the incumbent firm and has been providing exceptional investment advisory services to the City since 1994. Their proposal meets all City requirements.
Staff
Prepared by: David McNulty, Deputy Treasurer
Reviewed by: Michael J. Pettigrew, City Treasurer
Michelle Landis, Senior Assistant City Attorney
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