Investment Advisory Services

The City of Beaverton is currently seeking proposals from qualified firms interested in providing investment advisory services for the City’s investment portfolio. The City’s portfolio is divided into three categories: its core portfolio, a cash match (liquid) portfolio, and the Oregon Local Government Investment Pool (LGIP). Approximately 80% of the City’s funds are held in the core portfolio, with approximately 20% held in either the cash match portfolio or LGIP, based on the City’s needs. The cash match portfolio is designed for short-term investing to match maturities with cash flow needs while maximizing return on liquid assets. The City’s holdings in LGIP are considered cash-on-hand for immediate needs, are managed by State of Oregon, and are currently capped at just under $60 million. The core portfolio holds the remaining funds to be more actively managed. The City’s current Investment Policy states that investments will be managed on a non-discretionary basis. The City intends to explore transitioning to discretionary investment services during the term of this contract. The Investment advisor will be required to manage the funds in accordance with the laws of the State of Oregon, the City’s Investment Policy, and other investment policies and procedures established by the City. The current average size of the City’s portfolio is approximately $175 million, comprised of operating funds and bond proceeds. Copies of the current investment policy and portfolio holdings are provided. The City encourages all prospective investment advisors to examine this RFP carefully. Qualified advisors, as defined below, are requested to submit proposals to provide the services described in this RFP. The City expects its investment advisor to be highly experienced, a leader and innovator in the management of investments, and able to provide comprehensive investment advisory and portfolio accounting services. The firm selected as the investment advisor will be restricted from selling to the City, or buying from the City, any securities to or from that firm’s own inventory or account. The investment advisor shall act solely in a fiduciary capacity and shall not receive any fee or compensation based upon the purchase or sale of securities but, rather, the investment advisor will be compensated pursuant to the provision of its contract with the City.