Investment Advisory Services

The City of Beaverton is seeking a qualified investment advisory services firm to manage its approximately $175 million municipal investment portfolio through a five-year contract beginning January 1, 2025, with potential for two one-year extensions. The portfolio is currently divided into three categories: a core portfolio (80%), a cash match portfolio, and the Oregon Local Government Investment Pool (LGIP), with the investment advisor required to manage funds in accordance with Oregon state law and the city's investment policy. The procurement requires a registered investment advisor with at least $20 billion in fixed-income assets for public entities, ten years of relevant experience, and Errors & Omissions insurance of at least $15 million. Proposals are due by August 20, 2024, at 2:00 pm and will be submitted electronically through the city's procurement portal. The city anticipates transitioning from a non-discretionary to a discretionary investment management approach during the contract term, with the selected firm responsible for advising on investment management, performing cash flow analyses, and providing comprehensive reporting. Evaluation will be based on multiple criteria including experience, project approach, relevant experience, and pricing, with a total possible score of 100 points.

The procurement includes an aspirational goal of 15% participation for firms certified by the State of Oregon's Certification Office for Business Inclusion and Diversity (COBID), highlighting opportunities for diverse business enterprises. The city encourages participation from emerging small businesses (ESB), minority-owned businesses (MBE), women-owned businesses (WBE), service-disabled veteran-owned businesses (SDV), and disadvantaged business enterprises (DBE and ACDBE). Specifically, the city has implemented a Community Deposit Initiative Program allowing strategic local investments, with a maximum of $20 million available for transfer and no more than $10 million deposited in any single bank or credit union. The current portfolio's monthly balance ranges between $123 and $186 million, with the highest balances occurring in November and December after property tax collection. The investment advisor will be strictly prohibited from selling or buying securities from their own inventory and must act solely in a fiduciary capacity, with compensation based on the contract provisions rather than transaction-based fees. While no specific incumbent vendor is mentioned, the city's current portfolio is invested across U.S. Treasury securities, federal agency bonds, corporate bonds, and municipal securities, maintaining a conservative investment approach with a book yield of 4.328%.