Investment Services RFP
The Yuba Community College District Foundation desires to contract for Investment Management Services. The Investment Management Advisor will be required to oversee management of the funds in accordance with the laws of the State of California and adhere to the Investment Policy approved by the Board of Directors of the Foundation. The size of the projected investment portfolio is approximately $9.2 million. The services to be performed are as follows:
- Assess the Foundation investment requirements to include investment objectives, spending policies, risk tolerance, liquidity needs, and targeted surpluses and reserves.
- Provide guidance in the revision of the Foundation’s Investment Policy to include statement of purpose, definition of roles and responsibilities, establish investment objectives and goals, develop asset allocation, establish investment guidelines and portfolio limitations, and define process for performance monitoring and rebalancing.
- Monitor progress of investment portfolio and provide performance reports to Board on a regular basis.
- Review the investment strategy and make recommendations to adjust portfolio based on changes in market conditions and other relevant factors and/or propose revisions to investment policy.
- Search for and select Investment Manager(s) and monitor performance.
Any and all responses to this RFP must be sent electronically by email to Thomas “Jay” Lowden at email@example.com and be received by 5:00 p.m. on December 30, 2020. Any response package received after this deadline shall not be considered.
The entire RFP packet can be found here:
Questions & Responses
- Can you please send us a copy of the Yuba Community College District Foundation’s current Investment Policy Statement? – Investment Policy and Administrative Procedure.
- How is the current foundation portfolio invested and/or is there a stated mix of stocks and bonds the committee follows? The current Board approved investment mix is 42.5% equities and 57.5% Fixed Income/Bonds.
- From the IPS you sent, we see that principal preservation is top of the list, do you have a stated return objective? There is not stated return objective in the current policy. We would like to establish one moving forward.
- Can you give us any color on historical or projected cash flow activity (net cash flow positive or negative)? Because the policy has been to only distribute the dividends of the foundation the annual distribution from the investment portfolio easily covered the costs associated with the foundation, prior to the hiring of a Director in May of 2019.
- From your IPS we see that dividend and interest income will be distributed by specific purpose, does this mean that all interest, dividend and earnings will be distributed annually? Current policy only distributes interest and dividends. Earnings are not distributed or allocated to the various funds of the endowment. At this time they are acknowledged as short-term investments on our financial statement.
- Looks like the board is looking for input in updating the Investment Policy Statement any idea when that was last reviewed and updated? It was adopted in 2004, revised in 2014 and reviewed with not changes in 2019.
- How will the foundation educate board members on investment principles? There is currently not an education program for board members. We would look to the investment advisor to guidance in establishing one.
- How will the board determine whether the investment portfolio is compliant with the Investment Policy Statement? We desire the creation of a new policy that more clearly defines procedures with a clearly stated, comprehensive, investment mix. We would determine compliance based on the investment mix on a given date in relation to the stated investment mix in the policy.
- How often would the board like investment updates from my team and I (either conference call or face-to-face)? The board meets quarterly and would like a written update at each quarterly meeting. At least once per year the Foundation would want a face-to-face update, which for near term might be through video conferencing.
- Does the board have a target cash allocation in mind that will be needed to meet short to intermediate term obligations over the next 12 to 18 months? While they have not indicated one have not indicated one it would be reasonable to identify a target that covers the annual operating costs of the foundation in the range of $450,000.
- What is the disbursement amount and frequency? Annually on June 30, based on interest and dividends received during the previous year.
- How is their distribution rate being calculated? Distributions are based on the following administrative procedure approved by the Board of Directors: The Foundation Board of Directors has determined that interest and dividends earned from invested and endowed funds will be distributed based upon formula. Operating 24.0%, Foundation Reserve 3.0%, Endowed Scholarship Funds 46.4%, Other Endowed Funds 20.0%, Woodland Community College Local Committee Fund 1.7%, Lake County Campus Local Committee Fund 0.6%, Yuba College Local Committee Fund 4.3%. This was adopted in 2004 and revised in 2017.
- Would the board prefer distributions to be funded monthly, quarterly or Semi/annually? They have not expresses a preference.
- Is it the expectation of the board to grow the asset base over the long term in excess of distributions and any investment management expenses (acknowledging that return on investments in any given year may be less than distributions and expenses)? Yes.
- Are there any industries or specific companies/stocks that the board would like to restrict from the portfolio? There are not stated restrictions in current policy.
- Will the finalist presentations be in person or via video conference? At this time it will most likely be through a video conference.