Taitotalo is the largest provider of vocational adult education in Finland. In 2022, Taitotalo identified a need to tender its asset management and acquire an aggregation reporting service for its investment portfolio. We had the honor of being selected as their partner for both projects, and the cooperation began in 2023. We interviewed Eija Mattila, Taitotalo’s CFO, and asked how the collaboration has gone so far.
What triggered the need for asset management tendering and investment aggregation reporting?
Taitotalo had previously established an investment committee and developed an investment policy, which was approved by the company’s board. After that, Taitotalo wanted to find suitable asset management partners to implement its long-term investment activities, and at the same time, recognized the need for portfolio aggregation reporting. They decided to bring in an external partner to assist with both.
To find the right partner, Taitotalo conducted market research on Finnish providers of both aggregation reporting and asset management tendering and organized a competitive bidding process for the services. Based on a well-prepared proposal, SFR Advisors was selected to deliver both services. Eija also believed that we would be an agile and easy-to-work-with partner.
How did the tendering project go?
The goal of the tendering process was to identify the most suitable asset managers to oversee Taitotalo’s investment assets in accordance with the investment policy. Since Taitotalo is a non-profit limited liability company, the tendering process also had to comply with the Finnish Public Procurement Act.
The process began in February 2023. First, SFR Advisors reviewed Taitotalo’s investment policy and, together with Taitotalo, defined the evaluation criteria and scoring framework for the tender. The call for tenders was published at the end of March, and bids were accepted until mid-April. After that, SFR Advisors compared the proposals and compiled a summary.
The tendering process included an interview stage, which was conducted at the end of May. Final decisions were made, and cooperation with the selected asset managers began in June. The transition of assets was carried out using a time-diversified approach, which Eija found to be beneficial. According to her, the collaboration with the selected asset managers has started off very well, and Taitotalo has been very satisfied with the chosen partners.
What value did the interview phase bring to the process?
The idea to include interviews came from SFR Advisors, and according to Eija, it was a very successful addition. It brought a completely new dimension to the tendering process. The interviews provided an opportunity to meet the people they would potentially be working with and allowed asset managers to justify their investment choices, which Eija found particularly interesting. Overall, she felt that the interviews were highly beneficial in the decision-making process.
What benefits did working with a partner bring to the tendering process?
The greatest benefit of involving a partner, according to Eija, was that SFR Advisors took responsibility for leading the process and ensured it progressed consistently. SFR coordinated meetings and made sure everything was handled properly. The project was completed on time and as planned, with no major challenges along the way.
How has aggregation reporting supported Taitotalo?
Eija says the reporting has worked well and met all expectations. Taitotalo receives a comprehensive semi-annual report as well as a concise summary tailored for the board. She is very satisfied with the efficiency of the service – SFR Advisors collects all data directly from the asset managers, so Eija does not need to act as an intermediary. The reporting has also been customized to meet Taitotalo’s specific needs.
At the beginning of the cooperation, SFR Advisors provided more frequent reports to help track the early development of the investment activities. Since Taitotalo has a long-term investment strategy, more frequent reporting is no longer necessary, and semi-annual reporting now serves them well. The reports help track portfolio development and manager performance in a single, clear format. Eija finds it interesting to follow who performs well, how the portfolio evolves in relation to its benchmark, and how different asset classes perform over time.
According to Eija, the aggregation reporting service is an essential tool for them. Producing a similar report themselves from the materials provided by asset managers would be impossible, as those reports differ significantly in content and format. Without the service, they would not have a clear overall view of their portfolio, nor the ability to compare managers reliably.
How has the cooperation with SFR Advisors gone?
Eija says the cooperation has been smooth and that SFR Advisors has always been approachable. She emphasizes the strong trust they have had in SFR’s work throughout the collaboration, and that the service has been excellent. She has been especially pleased with the quality of customer service.
What advice would you give to other investors considering an asset management tender or aggregation reporting?
Eija strongly recommends involving an external expert in similar processes. Especially with tendering, there is a clear need for detailed scheduling, coordination, communication, and technical expertise. She believes it is beneficial to bring in an outside party, as they can also raise important issues that might not be considered internally, adding depth to the process. Particularly if the organization lacks internal expertise or resources, outsourcing the service is a good choice. Outsourcing can save not only time but potentially also costs.
Need help with asset management tendering or investment portfolio aggregation reporting?
We have years of experience conducting various asset management tenders and are well-versed in processes both subject to and outside the scope of public procurement law. Our aggregation reporting service makes it easy to monitor portfolio development and compare individual asset managers, portfolios, and strategies in a clear and consistent format.