Investment Advisory Services

The City of Long Beach is requesting proposals for investment advisory services related to the City's municipal investment portfolio under RFP FM-23-323, with proposals due November 30, 2023 at 11:00 a.m. PST and questions due November 9, 2023. A Notice of Intent to Award issued February 9, 2024 names Meeder Public Funds, Inc., of Dublin, Ohio as the selected vendor, pending execution of a purchase order.

Proposers must be registered investment advisors, members in good standing with the Federal Reserve Bank, and maintain a Community Reinvestment Act rating of "Outstanding" or "Satisfactory." The City is consolidating three separate portfolios (short-term, intermediate, and long-term) into one unified portfolio and bringing in-house the portion previously managed by the investment advisor. The selected advisor will provide expertise in advising, record-keeping, reporting, and compliance monitoring across a consolidated portfolio. The City plans to expand its investment strategy to include credit products and requires an advisor capable of maintaining strong compliance measures.

The fair market value of the City's combined cash and investment portfolio as of September 30, 2022 was approximately $1.959 billion. The initial contract term is two years with options to renew for three additional one-year periods, for a maximum total term of five years. Pricing must be itemized with costs broken down monthly, and proposers must submit an annual not-to-exceed compensation amount covering all direct and indirect costs, travel, legal fees, and other expenses.

The incumbent is Chandler Asset Management, which was invited to rebid. Proposers must carry errors and omissions insurance consistent with Government Finance Officers Association best practices and maintain commercial general liability insurance of $1,000,000 per occurrence and $2,000,000 general aggregate. The contract is subject to compliance with the Long Beach Municipal Code Equal Benefits Ordinance for awards exceeding $100,000 and prevailing wage requirements under California Labor Code sections 1770 et seq. Proposals must acknowledge Addendum No. 1 by signing and submitting it with the proposal; failure to do so may result in disqualification. The evaluation will be conducted between December 2023 and January 2024, with interviews and demonstrations scheduled as needed.