Request for Information on Cash Flow Return on Investment (CFROI) Approach Based Equity Analytic ...

Purpose of the Request: The Office of Investment Management (OIM) of the United Nations Joint Staff Pension Fund (UNJSPF) is seeking information on Cash Flow Return on Investment (CFROI) approach based equity analytical system and/or software products to assist in analyzing and assessing securities in the existing equity portfolios or potential new investments that could be added to its equity portfolios. OIM expects that the CFROI based equity analytical tool and related support will enable OIM to analyze any global equity in a consistent way with the aim of generating an expected upside estimate for each stock individually as well as in a portfolio context. Overview of the UNJSPF: The United Nations Joint Staff Pension Fund (“UNJSPF” or “the Fund”) was established by the General Assembly of the United Nations ("UN") to provide retirement, death, disability and related benefits for the staff of the UN and other international intergovernmental organizations admitted to membership in the Fund. The United Nations Secretary-General has the fiduciary responsible for the investment of the assets of the UNJSPF. The Secretary-General has delegated this responsibility to the Representative of the Secretary-General for the investment of the assets of the UNJSPF (RSG). The RSG is, in turn, assisted in this function by the Office of Investment Management (OIM) of the UNJSPF. All investments made, at the time of the purchase, must meet the criteria of safety, profitability, liquidity, and convertibility endorsed by the General Assembly and the United Nations Joint Staff Pension Board (“UNJSPB”). OIM utilizes the services of various global, regional and national trading counterparties. The UNJSPF is an internally managed fund, with a total market value of approximately $73 billion as of 29 February 2020, invested in more than 100 countries and regions distributed in 26 currencies and in both publicly traded securities as well as private capital investments (private equity and real assets). Please consult the Fund’s website at https://oim.unjspf.org/ for a breakdown of the Fund’s assets per type of investment and additional information. The Fund’s equity portfolios cover all global geographical regions and are managed by North American, European, Asian and Emerging market equity teams. The total market value of the internally managed equity investments amounted to $31.6B as of 31 March 2020. System requirements: The Equity analytical system being searched for by OIM must meet all the following requirements: (i) System must be a Cash Flow Return on Investment (CFROI)-centered equity analytical tool which can be applied consistently across equites from any geographical region and country. (ii) The tool must include and be driven by a database composed of scrubbed, normalized corporate historical financial data as well as consensus estimated financial data. (iii) The system must provide standardized, flexible earnings models which can be easily adjusted to stress test various scenarios to arrive at an expected upside for any particular security. This process requires that the system is capable to automatically calculate the market implied discount rate embedded in the share price. (iv) The system must be able to categorize each equity into factor based descriptive categories such as quality or momentum etc. (v) Ability to view an entire portfolio through the perspective of various categories in order to identify the factor exposure at a point in time as well as over time. (vi) The system should offer ESG measurement metrics. (vii) The system must be accessible through mobile devices as well as desktop. (viii) OIM also requires client support and services that would include not only general research reports on market views from the perspective of CFROI analytical methodology but also provide onsite portfolio reviews and briefings on at least a monthly basis.