Procurement of asset management services for the City of Hämeenlinna

The subject of the procurement is the provision of full-power-of-attorney asset management services. The client will be reported on a single investment portfolio. For alternative investments, the service provider may also use a consultative service model, but only one contract will be drawn up for the entire portfolio, to which a consultative agreement may be attached. For illiquid products, the service provider must complete the illiquid product data sheet prepared by the client, which is attached to the request for proposals. The service will be provided to the City of Hämeenlinna within the limits specified by the city in its request for proposals. The assets to be tendered are approximately EUR 43.5 million. If, in the future, an investment is financed by realizing investment assets, the assets managed per asset manager may decrease by EUR 4 million in the coming years. The selected service provider does not have the exclusive right to provide the services subject to the procurement to the city. The city will determine the size of the investment portfolio that the selected asset manager will manage, i.e., invest. The investor will decide at a later stage how to allocate potential additional investments or reductions in investments from the assets managed by asset managers, based on what is appropriate for the goals set for investment activities. At a later stage, the client reserves the right to increase or decrease the amount of investment assets. The offer and the service must be based on the request for proposals prepared by the City of Hämeenlinna. Initial phase measures and procedures will be negotiated separately with the service providers when the contract is made, at which point the contract with the selected asset managers will define the timeframe within which the agreed investment plan will be followed and assets will be transferred. The goal is for the assets to be transferred to the service provider at the beginning of 2025. The client's goal is to ensure high-quality, responsible, and competitive asset management in accordance with the investment plan for the capital entrusted to asset management. The quality and content of investment activities will be monitored by a system that regularly covers the entire scope of operations, so that management is aware of the risks and return development of the investment assets. The city collaborates with reputable and reliable partners. Service providers are required to adhere to general principles of responsibility and to accept the UN Principles for Responsible Investment. Responsible investment means taking into account environmental, social, and corporate governance factors in investment. Asset managers commit to reviewing the implementation of responsible investment principles in the city's investments annually. The principles and conditions for the implementation of responsibility are described in the request for proposals in connection with the principles decided by the city council regarding investment activities. If the bidder's own processes require it, the City of Hämeenlinna may be defined as a professional investor.