REQUEST FOR PROPOSALS (“RFP”) Investment Brokerage and Advisory Services
The District of Columbia Housing Finance Agency (the “Agency” or “DCHFA”) requests proposals from qualified vendors to provide investment brokerage services to include the purchase and sale of investment securities which may include bonds, obligations, treasury securities and equities (collectively “Investment Services”) for the Agency. The information and instructions set forth below are designed to solicit responses that will demonstrate your company’s capability to satisfy the Agency’s requirements. Each company is requested to submit its most competitive offer.
The deadline for submission of proposals is Wednesday, April 4, 2018 at 4:00 p.m. (ET).
Please submit one (1) electronic PDF file of the proposal via email to email@example.com and one (1) Flash Drive Copy with the proposal files to DCHFA, 815 Florida Avenue, NW, Washington, DC 20001, Attn: Keami Estep, Procurement Manager.
QUESTIONS ABOUT THIS RFP
Companies may submit questions related to this RFP in writing or by e-mail no later than noon on Monday, March 12, 2018 (ET). All questions shall be sent to Keami Estep, Procurement Manager at firstname.lastname@example.org. No oral proposals or oral modifications of proposals will be considered.
The subject line of the email and the outside packaging of the Flash Drive submission must include “Response to Investment Brokerage Services RFP: Your Agency Name”
QUESTIONS AND ANSWERS:
- What is the typical / average asset size of the investment portfolio? What is the size of then investment pool? Will there be future contributions to the pool? What is the size of the investment portfolio with this RFP?
We hope to grow the investment portfolio managed here up to $50MM. Initially it will likely be $20-30MM.
- Do you have an Investment Policy that you follow today? Can you provide it? Can you share the Investment Policy Statement? Do you have an investment policy statement or any guidelines on what investments can be put into the portfolio?
Please see attached the draft DCHFA Investment Policy.
- You mentioned working with your cash management and cash flow support. Do you have an annual cash flow analysis you can provide?
At this time we believe we can support having up to $50MM in relatively liquid investments, however, we do not have a specific cash flow analysis beyond our yearly audited financials that you can find on our website.
- What is the time horizon for the investment funds? What are the prospective uses for the investment funds; prospective liquidity needs?
We believe that our current cash flow requirements support investing the funds long term, however, we will seek to work with the investment brokerage to find investments that are liquid so that we have optionality.
- How are the funds currently invested and will they be invested in the same manor going forward? Are the funds currently invested in equities? If not, will equities be considered in the future? To help us better prepare our response, do you have an existing Investment Policy Statement (IPS) which details the asset classes in which you invest, and any associated target levels, or maximums / minimums?
Most of the funds are currently in shorter term highly liquid money market funds. We are seeking an asset mix which will include a large portion of bonds or bond funds (40-60%), but we will also look to do equities (10-15%), still maintain some in money market vehicles (20-30%) and look to other asset classes for the remainder.
DCHFA will work with the investment brokerage to create benchmarks for each of the asset classes and on a quarterly basis (at a minimum) prepare comparisons of the portfolios against those benchmarks.
- We’ve also observed that you are seeking active fixed income trading across corporate bonds and Treasuries. What is the desired duration/maturity of the fixed income portion? Are you targeting cash management or more intermediate/long-term portfolios? We can provide services for any of the above, knowing how you structure your accounts will help us to better advise on the coverage team and construct our recommendations.
We are open to advice and counsel, however our initial thinking is that an intermediate (2-4 years) duration would be appropriate for the fixed income portion of the portfolio.