Municipal Investment Advisory and Portfolio Management Services

The vendor is required to provide from investment advisory firms (hereafter referred to as “firm”) for portfolio management services for approximately $276.9 million in operating and capital funds.
- Although not all-inclusive, specific services to be performed are as follows:
1. Portfolio management:
• Manage the city's portfolio with discretionary authority.
• The firm must provide full-time management of the city’s investment portfolio and effectively invest the city’s portfolio pursuant to the current investment policy and developed cash flow and maturity analysis schedule.
• An essential goal is to ensure that the portfolio structure matches the city’s objectives as well as to evaluate market risk, develop strategies that minimize the impact on the portfolio, and maximize return while preserving safety, liquidity, yield, and diversity.
2. Credit analysis:
• The firm must provide periodic credit analyses of investment instruments in the portfolio at a minimum of once per month, and immediately upon occurrence of a significant event that impacts credit worthiness.
3. Reporting:
• Provide monthly, quarterly and annual reports for the managed city funds.
• The firm must prepare a monthly, quarterly, and annual investment report
• The report(s) shall contain a detail listing of all securities (including purchase date, maturity date, cost basis, book value, interest rate, weighted average maturity, and current unrealized loss or gain), analysis of portfolio performance, including charts and graphs as necessary to display relevant investment information, and a narrative regarding the current market conditions and other key indicators.
4. Meetings with city officials:
• The firm must attend quarterly meetings and/or other timed investment advisory committee meetings, making presentations (as needed) on portfolio performance, market conditions and portfolio strategy.
• The firm may also be requested to attend meetings (in person or via teleconference) for the budget and finance committee, and the city council
5. Broker and dealer due diligence:
• The firm shall perform broker and dealer due diligence and maintain relations with the broker/dealer community.
• The firm must transact business only with a list of security broker and dealers who have been approved by the firm to conduct business with the city of hayward.
6. Performance benchmark:
• Establish an appropriate performance benchmark.
7. Third party custodian, safekeeping:
• Coordinate with the city’s third-party custodian for safekeeping of securities, and provide any and all services required to settle a trade, including coordination with trustee banks.
- Annual city operating budget (including general fund): $239,923 m
- Annual general fund budget: $123,524 m
- Annual city capital budget: $106 m
- Contract Period/Term: 2 years
- Questions/Inquires Deadline: April 18, 2025