The Village of Wauconda is requesting responses to this Request for Proposal from Investment Advisory firms, hereinafter referred to as “Firm(s)”, registered with the Securities and Exchange Commission and other appropriate regulatory authorities, as necessary, to conduct portfolio investment management services for approximately $7 - $15 million of non-pension public funds. Portfolio totals are an estimate; actual amounts and timing of placement will vary depending on cash flows needs and unanticipated revenue disruptions. The contract will be for a three (3) year period with the option to renew it for up to two (2) additional years with the mutual consent of both parties.
Firms submitting proposals must comply with applicable state and federal laws for vendors doing business with a public entity. Investment practices and procedures must comply with Illinois law and the Village’s Investment Policy (Attachment A). The Firm will be expected to perform to the Prudent Expert Standard. Firms shall include with its proposal a draft form of its proposed relationship agreement and disclosures (if applicable) pursuant to Municipal Securities Rulemaking Board (MSRB) Rule G-42. Specific services, although not all inclusive, include the following:
• Assist the Village in cash flow/maturity analysis.
• Provide credit analysis of investment instruments in portfolio.
• Provide monthly portfolio reporting including detailing holdings, composition and sector analysis, return, weighted average maturity and transaction activity.
• Provide quarterly investment reports including a description of market conditions, investment strategies employed, performance, and suggested changes to investment strategy. Meet with staff as needed and present portfolio performance to the Village Board at least once per year.
• Firm shall no have custody or possession of the funds or securities the Village has placed under its management. The village will retain a custodian or safekeeping agent to take possession of its invested assets.
• Evaluate market risk and develop strategies that minimize impact on the portfolio.
• Provide assurance of portfolio compliance with applicable policies and laws.
• Establish an appropriate performance benchmark.
• Indicate full understanding of and review Village Investment Policy as well as related internal control procedures. Provide recommendations for amendment as
appropriate.
• Ensure portfolio structure matches the Village’s investment objectives.
• Serve as a general resource to the Village staff for information, advice, and training regarding fixed income securities, investments, and treasury operations.
• Assist in developing an investment plan for all capital funds, including bond proceeds, where applicable.
Under this contract, the Village’s investment objectives include the following. These objectives are subject to change as policy modifications are made.
• Protection of investment principal.
• Investment portfolio will remain sufficiently liquid to meet anticipated cash flow requirements.
• Strive to earn a market rate of return commensurate with the investment risk taken.
• Employ mechanisms to control risks and diversity investments.
• Portfolio managed under this policy shall be designed with the objective of regularly exceeding the average return of a U.S. Treasury Bill or Treasury Index that most closely reflects the duration of the investment portfolio.
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