Tenders Are Invited For Portfolio Management Services – Procurement Of Financial Management Services For The ... in Finland

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Portfolio Management Services – Procurement Of Financial Management Services For The City Of Kuhmo. The Initial Capital Of The Assets Included In The Investment Activities Of The City Of Kuhmo Originates From 2002, When The City Established A Development Fund On February 21, 2002 By The Councils Decision In § 18, The Initial Capital Of Which Was Eur 12,500,000.00. The Purpose Of The Fund Is To Promote Kuhmos Business Life, Attractiveness And To Ensure Financing Of Significant Basic Service Investments In Accordance With The Kuhmo Strategy. Investment Assets Have Developed As A Result Of Investment Returns. The Amount Of Funds Changes Depending On How Much The Annual Income Financing Is Sufficient To Finance Operating Expenses And Investments. Approximately €26 Million Of The Citys Liquid Assets As Of September 30, 2026 Are Estimated To Be Investable For The Long Term. The City Tenders The Investment Assets In Question In Two (2) Separate Parts Of The Procurement, Where The Object Of Each Part Of The Procurement Is Basically The Asset Management Of The Full Power Of Attorney Of A Securities Portfolio Of Around €13 M, Including Equity And Interest Investments, In Accordance With The Principles And Restrictions Defined In The Citys Investment Policy. Based On The Procurement, The City Will Conclude Two (2) Separate Procurement Contracts With Two (2) Different Service Providers. Neither Service Provider Has The Exclusive Right To Manage The Citys Investment Assets. The City Does Not Commit To A Certain Minimum Amount Of Investment Assets To Be Managed By The Asset Manager. During The Contract Period, The City Has The Right To Increase Or Decrease The Investment Assets Managed By Both Asset Managers Based On The Citys Financing, Investment And Investment Needs. Changes In Investment Assets Do Not Change The Content Of The Service Being Purchased Or The Pricing Principle, But The Fee For The Asset Management Service Is Determined Based On The Assets Under Management At Any Given Time, In Accordance With The Price Stated In The Offer. The City Also Does Not Undertake That Any New Assets That May Be Invested During The Contract Period Will Be Distributed Equally Or In A Predetermined Ratio Between The Asset Managers. The City Decides On The Allocation Of New Assets That May Be Invested During The Contract Period Based On Its Own Financing, Investment And Investment Needs. Offers Are Requested For The Financial Management Of A Full Power Of Attorney. The Procurement Will Be Carried Out As A Fixed-Term Procurement Contract With A Duration Of Six (6) Years, Plus Possible Two Individual One-Year Option Periods (1+1 Years). The City Alone Has The Right, But Not The Obligation, To Use The Option Periods By Notifying In Writing At Least 6 Months Before The End Of The Respective Contract Period. The City Has The Right To Use The Option Periods Either One At A Time Or Both Consecutively. Asset Management Is By Nature A Long-Term Investment Activity, Where The Evaluation Of The Asset Managers Investment Strategy And Operations Requires A Sufficiently Long Review Period And The Opportunity To Evaluate Operations In Different Market Conditions. Shorter Contract Period

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