PICAUM002/2023: Request for Proposal (RFP)

Appointment of service providers to provide

investment management service – Emerging Managers

The Public Investment Corporation (SOC) Limited (“PIC”) is a registered Financial Service
Provider (“FSP”) in terms of the financial advisory and intermediary Services Act No 37 of
2002 and is a schedule 3(b) public entity in terms of the Public Finance Management Act No
1 of 1999, wholly owned by the Government of the Republic of South Africa.

The PIC hereby extends its request to suitably qualified B-BBEE Developmental and
Emerging Listed Equity, Fixed Income and Inflation Linked Bond managers that are
qualified, experienced and competent for the provision of investment management services
as and when required.

The criteria for potential bidders to qualify for further evaluation is submission of
Proposals from minimum 51% black ownership and minimum 30% black women
ownership. The firms should have a minimum B-BBEE contributor status level 2, and
meet the following:

 Minimum Black People Management Control 50%; Black Women Management Control
30% and Women Management Control 30%
 Minimum Black People Board Representation 50%; Black Women Board Representation
15%; Women Board Representation 30%
 Assets under management between R5 billion – R15 billion

The lead investment professionals must have economic interest in the business. The key
individual(s) must have at least three years direct investment experience as fund managers
regarding the suggested products, and preferably be black women. Consideration will be
given to black women in senior analyst roles to be co-portfolio managers.

A Virtual Non-Compulsory briefing session will be held on the 11th of September 2023,
time 11:00AM.

Interested bidders need to indicate their interest to join the Virtual briefing session by not
later than 08:00 AM, 11 September 2023 to tenders@pic.gov.za quoting Bid Reference
Number: PICAUM002/2023.

Soft copies of the document will be available on PIC website www.pic.gov.za from 28
August 2023

Responses must be submitted to tenders@pic.gov.za. on or before 29 September 2023, at

2023 1614

11:00AM.

Enquiries, tenders@pic.gov.za. Reference number PICAUM002/2023 must be included in

all communication.

WWW.BASADZI.CO.ZA BASADZI MEDIA - ADVERTISING

 Public Investment Corporation SOC Ltd
Private Bag X187
Pretoria 0001
Republic of South Africa

REQUEST FOR PROPOSAL (RFP)

PICAUM 002/2023

Closing Date: 29 September 2023 Closing Time: 17:00

DESCRIPTION: Request for Proposal (RFP) Appointment of service providers to provide

investment management service – Emerging Managers

Requested by: Multi-management Public Markets

Enquiries: tenders@pic.gov.za Validity Period: 180 days

Submission Instructions:

Bidders to submit proposals electronically to ➢ Bidders are required to submit their proposal on
tenders@pic.gov.za (size up to 10mb, or We time.
Transfer (up to 2GB). RFP number to be ➢ All documents should be uploaded electronically.
quoted (PICAUM002/2023) in all ➢ The onus is on the bidders to submit
correspondence. accessible Proposals on or before the closing
date and time.
A Virtual Non-Compulsory briefing session will be held on the 11th of September 2023, time
11:00AM. Interested bidders need to indicate their interest to join the Virtual briefing session by
not later than 08:00 AM, 11 September 2023 to tenders@pic.gov.za quoting Bid Reference
Number: PICAUM002/2023. A link will be forwarded to interested bidders to join the briefing
session.

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Republic of South Africa

1. ADMINISTRATIVE REQUIREMENTS (100% COMPLIANCE)

The following documents must be completed, signed and submitted.

Description of document Yes No

Invitation to Bid (SBD1)

Bidder’s Disclosure Document

POPIA Consent Form

Central Supplier Database /Registration document

Valid Tax Pin Number

B-BBEE Level contributor certificates (SANAS Accredited)/ Sworn Affidavits

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Republic of South Africa

Table of Contents
2. Closing Date................................................................................................................................. 10
3. Validity........................................................................................................................................... 10
4. Queries and Clarifications .......................................................................................................... 10
5. Reasons for Rejection ................................................................................................................ 10
6. Cancellation of a Bid ................................................................................................................... 10
7. Terms And Conditions ................................................................................................................ 10
8. INVITATION TO BID................................................................................................................... 11

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 Public Investment Corporation SOC Ltd
Private Bag X187
Pretoria 0001
Republic of South Africa

1. BACKGROUND

1.1. The Public Investment Corporation (PIC) is an asset management company wholly owned by the
Government of the Republic of South Africa duly represented by the Minister of Finance. The PIC
manages investments on behalf of public sector funds which include Government Employees
Pension Fund (GEPF), Unemployment Insurance Fund (UIF) and Compensation Fund (CF).

Overview of the Tender

1.2. The PIC invites written proposals from suitably qualified asset managers that meet the minimum
RFP requirements to be placed on the database to assist the Multi-management (Public Markets)
Division of the PIC.

1.3. The Multi-management (Public Markets) Division is responsible for the appointment, monitoring,
and termination of external managers.

1.4. To give effect to the PIC’s transformation agenda, it may become necessary for the PIC to appoint
external managers that meet both the minimum B-BBEE requirements and have also achieved
acceptable black representation at ownership and management control level as set out in the
RFP document.

Services Required

1.5. The PIC requires qualifying managers with expertise in the categories stipulated below (Proof
must be submitted in the proposal of experience in categories below (Service sheet): Kindly tick
the Category/ies you included in your proposal.
Categories Tick ✓ Due Diligence Questionnaire to Complete
SA Active Fixed Income Annexure A
Mandate.
SA Active Inflation Linked Bonds. Annexure B
SA Active Listed Equity Mandate Annexure C

Scope of Work

1.6. See attached Due Diligence Questionnaire Annexures as indicated above, for detailed
scope of work.

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Republic of South Africa

SCOPE OF SERVICES

2.1. The PIC hereby invites proposals from suitably qualified B-BBEE investment managers
that are qualified, experienced and competent for the provision of investment
management service providers to submit responses to this RFP for the management
of:
Categories Mandate Objectives
SA Active Fixed Income South African fixed income mandate with a modified duration
Mandate. of the total portfolio within 4 years of the benchmark modified
duration, with a maximum ex-ante tracking error limit of 4%
and an information ratio of 0.5 p.a. over any rolling 36 months
period, relative to the FTSE/JSE All Bond Index.

SA Active Inflation Linked Bonds.
South African inflation linked bonds mandate with a modified
duration of the total portfolio within 4 years of the benchmark
modified duration, with a maximum ex-ante tracking error limit
of 4% and an information ratio of 0.5 p.a. over any rolling 36
months period, relative to the FTSE/JSE Inflation-Linked
Index.

SA Active Listed Equity Mandate South African general equity mandate with a maximum ex-
ante tracking error limit of 5% and an information ratio of 0.5
p.a. over any rolling thirty-six months period, relative to the
FTSE/JSE SWIX excluding property and gambling.

2.2. Bidders must note that, if they are successful, they will be placed on a list of service
providers. Service providers may be selected to manage specific funds as and when
required.

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Republic of South Africa

2.3. Bidders must note that the selection as a service provider is not a guarantee of
securing work from the PIC.

3. MINIMUM CRITERIA
3.1. Potential Bidders must comply with the conditions below for PIC to consider Proposals
for further evaluation:
REQUIREMENTS Please ✓ if Comments -Please
comply submit proof to confirm
compliance e.g.,
BBBEE Certificate/BEE
Report/Affidavit/Refer to
Annexure
1. The Entity must be Level 2 with the
following:
• Black Ownership 51% B-BBEE
certificate/Affidavit
• Black Female Ownership 30% B-BBEE
certificate/Affidavit
• Black People Management Control Company Profile and
50%; Black Women Management Affidavit
Control 30% and Women
Management Control 30%
• Black People Board Representation Company Profile and
50%; Black Women Board Affidavit
Representation 15%; Women Board
Representation 30%
• Assets under management need to Company Profile and
be less than R5 billion - R15 billion Affidavit

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 Public Investment Corporation SOC Ltd
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Pretoria 0001
Republic of South Africa

3.2. The lead investment professionals must have economic interest in the business. The
key individual(s) must have at least three years direct investment experience as fund
managers regarding the suggested products, and preferably be black women.
Consideration will be given to black women in senior analyst roles to be co-portfolio
managers.

2. EVALUATION
B-BBEE BONUS POINTS
a. Bonus points will be awarded to entities who meet the above requirements and have
also achieved higher levels of:
• Black Ownership
• Black Women Ownership
• Black People Representation at Management control level
• Black Women Representation at management control level
• Women Representation at management control level
• Black People Board Representation
• Black Women Board Representation
• Women Board Representation
b. B-BBEE Points out of a score of 20% will be scored based on the below matrix:
• The below scoring matrix will be applied to obtain a B-BBEE score that will be
added to the technical score achieved by each bidder in order to arrive at an overall
score. NB: Score of 3 is a qualifying criterion.

c. Black People Ownership Weight

% Black Ownership (5%) Score
Min Criteria: 51% Black Ownership
81-100 5
61-80 4
51-60 3

d. Black Women Ownership Weight

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% Black Women Ownership and (5%) Score

Min Criteria: 30% Black Women Ownership
71-100 5
51-70 4
30-50 3

e. Black People Management Control Level

Black Management Control - (2%) Score
Min Criteria: 50% Black People Management Control
81-100 5
61-80 4
50-60 3

f. Black Women Management Control

Black Women Management Control - (2%) Score
Min Criteria: 30% Black Women
71-100 5
51-70 4
30-50 3

g. Women Management Control

Women Management Control - (1%) Score
Min Criteria: 30% Women
71-100 5
51-70 4
30-50 3

h. Black People Board Representation

Board Representation Black People - (2%) Score
Min Criteria: 50% Black Representation
81-100 5
61-80 4
50-60 3

i. Black Women Board Representation

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Board Representation Black Women - (2%) Score

Min Criteria: 15% Black Women Representation
61-100 5
41-60 4
15-40 3

j. Women Board Representation

Board Representation Women - (1%) Score
Min Criteria: 30% Women Representation
71-100 5
51-70 4
30-50 3

The following preference points shall apply to the bid.

CRITERIA POINTS

Technical Evaluation
80

B-BBEE

Broad Based Black Economic Empowerment

(“BBBEE”) - The BBBEE status of the company must
be indicated by submission of the rating certificate
from any SANAS Accreditted rating agency of similar
standing.

Black Ownership percentage and Black Management

percentage representation must be indicated. 20

TOTAL 100 points

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 Public Investment Corporation SOC Ltd
Private Bag X187
Pretoria 0001
Republic of South Africa

2. Closing Date
The closing date for submission of proposal is 29 September 2023. Proposals to be submitted to
Tenders@pic.gov.za.

Late submissions will not be accepted.

3. Validity
The proposals should remain valid for at least 180 days after the closing date.

4. Queries and Clarifications

Any additional information required which is not clarified in the specifications must be addressed in writing
to (Tenders@pic.gov.za) by close of business on 18 September 2023. Reference number must be
quoted in all communication.

5. Reasons for Rejection

PIC may disregard any submission if that bidder, or any of its directors:

• Have abused the Supply Chain Management (SCM) system of any Government Department/
institution.
• Have committed proven fraud or any other improper conduct in relation to such system.
• Have failed to perform on any previous contract and the proof thereof exists.
• Is restricted from doing business with the public sector if such a supplier obtained preferences
fraudulently or if such supplier failed to perform on a contract based on the specific goals.

6. Cancellation of a Bid
PIC may prior to the award of a bid, cancel a bid if

• Due to changed circumstances, there is no longer a need for the goods or services requested.
• Funds are no longer available to cover the total envisaged expenditure.
• No acceptable bids are received.
• Material Irregularities

7. Terms And Conditions

• Submission must be on PDF and emailed to tenders@pic.gov.za. Please quote reference number
PICAUM002/2023 in your email subject line.

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Republic of South Africa

8. INVITATION TO BID
YOU ARE HEREBY INVITED TO BID FOR REQUIREMENTS OF THE (NAME OF DEPARTMENT/ PUBLIC ENTITY)

CLOSING DATE: 29
BID NUMBER: PIC002AUM/2023 SEPTEMBER 2023 CLOSING TIME: 17:00

Appointment of service providers to provide investment management service –

DESCRIPTION Developmental Managers

BID RESPONSE DOCUMENTS MAY BE EMAILED TO

Tenders@pic.gov.za

BIDDING PROCEDURE ENQUIRIES MAY BE

DIRECTED TO TECHNICAL ENQUIRIES MAY BE DIRECTED TO:

E-MAIL ADDRESS Tenders@pic.gov.za E-MAIL ADDRESS Tenders@pic.gov.za

SUPPLIER INFORMATION

NAME OF BIDDER

POSTAL ADDRESS

STREET ADDRESS

TELEPHONE
NUMBER CODE NUMBER

CELLPHONE
NUMBER

FACSIMILE NUMBER CODE NUMBER

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E-MAIL ADDRESS

VAT REGISTRATION
NUMBER

SUPPLIER TAX CENTRAL

COMPLIANCE COMPLIANCE SUPPLIER
OR
STATUS SYSTEM PIN: DATABASE
No: MAAA

B-BBEE STATUS TICK APPLICABLE BOX] B-BBEE STATUS LEVEL [TICK APPLICABLE
LEVEL SWORN AFFIDAVIT BOX]
VERIFICATION
CERTIFICATE
Yes No
Yes No

[A B-BBEE STATUS LEVEL VERIFICATION CERTIFICATE/ SWORN AFFIDAVIT (FOR EMES & QSEs) MUST BE
SUBMITTED IN ORDER TO QUALIFY FOR PREFERENCE POINTS FOR B-BBEE]

11 ARE YOU THE Yes

12 ARE YOU A FOREIGN
ACCREDITED No
BASED SUPPLIER FOR Yes No
REPRESENTATIVE
THE GOODS
IN SOUTH AFRICA
[IF YES ENCLOSE /SERVICES /WORKS [IF YES, ANSWER
FOR THE GOODS
PROOF] OFFERED? PART B:3 ]
/SERVICES /WORKS
OFFERED?

QUESTIONNAIRE TO BIDDING FOREIGN SUPPLIERS

IS THE ENTITY A RESIDENT OF THE REPUBLIC OF SOUTH AFRICA (RSA)?

YES NO

DOES THE ENTITY HAVE A BRANCH IN THE RSA?

YES NO

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DOES THE ENTITY HAVE A PERMANENT ESTABLISHMENT IN THE RSA?

YES NO

DOES THE ENTITY HAVE ANY SOURCE OF INCOME IN THE RSA?

YES NO

IS THE ENTITY LIABLE IN THE RSA FOR ANY FORM OF TAXATION? YES
NO

IF THE ANSWER IS “NO” TO ALL OF THE ABOVE, THEN IT IS NOT A REQUIREMENT TO REGISTER FOR A TAX
COMPLIANCE STATUS SYSTEM PIN CODE FROM THE SOUTH AFRICAN REVENUE SERVICE (SARS) AND IF NOT
REGISTER AS PER 2.3 BELOW.

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PART B

TERMS AND CONDITIONS FOR BIDDING

1. BID SUBMISSION:

1.1. BIDS MUST BE DELIVERED BY THE STIPULATED TIME TO THE CORRECT ADDRESS.
LATE BIDS WILL NOT BE ACCEPTED FOR CONSIDERATION.

1.2. ALL BIDS MUST BE SUBMITTED ON THE OFFICIAL FORMS PROVIDED–(NOT TO BE RE-
TYPED) OR IN THE MANNER PRESCRIBED IN THE BID DOCUMENT.

1.3. THIS BID IS SUBJECT TO THE PREFERENTIAL PROCUREMENT POLICY FRAMEWORK

ACT, 2000 AND THE PREFERENTIAL PROCUREMENT REGULATIONS, 2017, THE
GENERAL CONDITIONS OF CONTRACT (GCC) AND, IF APPLICABLE, ANY OTHER
SPECIAL CONDITIONS OF CONTRACT.

2. TAX COMPLIANCE REQUIREMENTS

2.1 BIDDERS MUST ENSURE COMPLIANCE WITH THEIR TAX OBLIGATIONS.

2.2 BIDDERS ARE REQUIRED TO SUBMIT THEIR UNIQUE PERSONAL IDENTIFICATION

NUMBER (PIN) ISSUED BY SARS TO ENABLE THE ORGAN OF STATE TO VERIFY
THE TAXPAYER’S PROFILE AND TAX STATUS.

2.3 APPLICATION FOR TAX COMPLIANCE STATUS (TCS) PIN MAY BE MADE VIA E-FILING
THROUGH THE SARS WEBSITE WWW.SARS.GOV.ZA.

2.4 BIDDERS MAY ALSO SUBMIT A PRINTED TCS CERTIFICATE TOGETHER WITH THE
BID.

2.5 IN BIDS WHERE CONSORTIA / JOINT VENTURES / SUB-CONTRACTORS ARE

INVOLVED, EACH PARTY MUST SUBMIT A SEPARATE TCS CERTIFICATE / PIN / CSD
NUMBER.

2.6 WHERE NO TCS IS AVAILABLE BUT THE BIDDER IS REGISTERED ON THE CENTRAL
SUPPLIER DATABASE (CSD), A CSD NUMBER MUST BE PROVIDED.

2.7 NO BIDS WILL BE CONSIDERED FROM PERSONS IN THE SERVICE OF THE STATE,
COMPANIES WITH DIRECTORS WHO ARE PERSONS IN THE SERVICE OF THE

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STATE, OR CLOSE CORPORATIONS WITH MEMBERS PERSONS IN THE SERVICE OF

THE STATE.”

NB: FAILURE TO PROVIDE / OR COMPLY WITH ANY OF THE ABOVE PARTICULARS MAY
RENDER THE BID INVALID.

SIGNATURE OF BIDDER:
……………………………………………

CAPACITY UNDER WHICH THIS BID IS SIGNED:

……………………………………………

(Proof of authority must be submitted e.g. company resolution)

DATE:
…………………………………………...

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BIDDER’S DISCLOSURE

1. PURPOSE OF THE FORM

Any person (natural or juristic) may make an offer or offers in terms of this invitation to bid. In line with
the principles of transparency, accountability, impartiality, and ethics as enshrined in the Constitution
of the Republic of South Africa and further expressed in various pieces of legislation, it is required for
the bidder to make this declaration in respect of the details required hereunder.

Where a person/s are listed in the Register for Tender Defaulters and / or the List of Restricted
Suppliers, that person will automatically be disqualified from the bid process.

2. Bidder’s declaration

2.1 Is the bidder, or any of its directors / trustees / shareholders / members / partners or any person
having a controlling interest1 in the enterprise,

employed by the state? YES/NO

2.1.1 If so, furnish particulars of the names, individual identity numbers, and, if applicable, state
employee numbers of sole proprietor/ directors / trustees / shareholders / members/ partners or any
person having a controlling interest in the enterprise, in table below.

Full Name Identity Number Name of State institution

1 the power, by one person or a group of persons holding the majority of the equity of an enterprise, alternatively,
the person/s having the deciding vote or power to influence or to direct the course and decisions of the enterprise.

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2.2 Do you, or any person connected with the bidder, have a relationship with any person who is
employed by the procuring institution? YES/NO

2.2.1 If so, furnish particulars:

……………………………………………………………………………………

……………………………………………………………………………………

2.3 Does the bidder or any of its directors / trustees / shareholders / members / partners or any person
having a controlling interest in the enterprise have any interest in any other related enterprise whether
or not they are bidding for this contract? YES/NO

2.3.1 If so, furnish particulars:

…………………………………………………………………………….

…………………………………………………………………………….

3 DECLARATION

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Private Bag X187
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Republic of South Africa

I, the undersigned, (name)……………………………………………………………………. in submitting

the accompanying bid, do hereby make the following statements that I certify to be true and complete
in every respect:

3.1 I have read and I understand the contents of this disclosure;

3.2 I understand that the accompanying bid will be disqualified if this disclosure is found not to be true
and complete in every respect;

3.3 The bidder has arrived at the accompanying bid independently from, and without consultation,
communication, agreement or arrangement with any competitor. However, communication between
partners in a joint venture or consortium2 will not be construed as collusive bidding.

3.4 In addition, there have been no consultations, communications, agreements or arrangements with
any competitor regarding the quality, quantity, specifications, prices, including methods, factors or
formulas used to calculate prices, market allocation, the intention or decision to submit or not to submit
the bid, bidding with the intention not to win the bid and conditions or delivery particulars of the products
or services to which this bid invitation relates.

3.4 The terms of the accompanying bid have not been, and will not be, disclosed by the bidder, directly
or indirectly, to any competitor, prior to the date and time of the official bid opening or of the awarding
of the contract.

3.5 There have been no consultations, communications, agreements or arrangements made by the
bidder with any official of the procuring institution in relation to this procurement process prior to and
during the bidding process except to provide clarification on the bid submitted where so required by the
institution; and the bidder was not involved in the drafting of the specifications or terms of reference for
this bid.

3.6 I am aware that, in addition and without prejudice to any other remedy provided to combat any restrictive
practices related to bids and contracts, bids that are suspicious will be reported to the Competition
Commission for investigation and possible imposition of administrative penalties in terms of section 59

2 Joint venture or Consortium means an association of persons for the purpose of combining their expertise,
property, capital, efforts, skill and knowledge in an activity for the execution of a contract.

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of the Competition Act No 89 of 1998 and or may be reported to the National Prosecuting Authority
(NPA) for criminal investigation and or may be restricted from conducting business with the public sector
for a period not exceeding ten (10) years in terms of the Prevention and Combating of Corrupt Activities
Act No 12 of 2004 or any other applicable legislation.

I CERTIFY THAT THE INFORMATION FURNISHED IN PARAGRAPHS 1, 2 and 3 ABOVE IS

CORRECT.

I ACCEPT THAT THE STATE MAY REJECT THE BID OR ACT AGAINST ME IN TERMS OF
PARAGRAPH 6 OF PFMA SCM INSTRUCTION 03 OF 2021/22 ON PREVENTING AND COMBATING
ABUSE IN THE SUPPLY CHAIN MANAGEMENT SYSTEM SHOULD THIS DECLARATION PROVE
TO BE FALSE.

……………………………… ..……………………………………………

Signature Date

……………………………… ………………………………………………

Position Name of bidder

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