Equity investment management services – 36-Month appointment (MEGA/2027/06)

Closing date: 06 November 2026 at 12:00 (South African time, GMT+2).

Enquiries deadline: 02 November 2026 (via email).

Bidding procedure enquiries:

• Contact: Mr S Lekhuleni
• Email: [email protected]
• Telephone: 013 492 5818

Technical enquiries:

• Contact: Ms S Nkwinika
• Email: [email protected]
• Telephone: 013 492 5818

Supply chain management enquiries:

• Email: [email protected]

Submission address:

MEGA Head Office

02 Eastern Boulevard, Riverside

Mbombela, 1200

Submission method: sealed envelope deposited in the tender box at MEGA Head Office, 02 Eastern Boulevard, Riverside, Mbombela, 1200.

• Envelope must be marked with the bidder's name, bid number, bid description, and closing date.
• Submit one original and one copy on USB.
• Bids must be on official forms, not re-typed.
• Late bids will not be accepted.
• Returnable forms (all must be completed and signed):
• SBD1 (Invitation to Bid): bidder details and offer cover page.
• SBD4 (Declaration of Interest): discloses any state employment or connections to the procuring institution; false disclosure disqualifies.
• SBD6.1 (Preference Points Claim): claims specific-goal points; supporting evidence required.
• Letter of authority to sign (e.g. company resolution).
• Certified ID copies of directors/shareholders.
• Certified copies of academic and professional qualifications of key personnel.
• CVs of all proposed key personnel.
• Proof of CSD registration (detailed report).
• If any member is a government employee, a letter of approval from the Executive Authority.
• Proof of Professional Indemnity Insurance valid on closing date.
• Company/CC/Trust/Partnership registration certificates.
• Fully completed pricing schedule.
• Bids remain valid for 120 days from closing date.

Three-stage evaluation:

• Stage 1: Responsiveness – mandatory requirements checked; failure disqualifies.
• Stage 2: Functionality – scored out of 100; minimum qualifying score is 70. Bidders below 70 are disqualified.
• Stage 3: Price and Specific Goals – 80/20 preference point system (80 points price, 20 points specific goals).

Functionality scoring (100 points total):

• Company experience in institutional equity investment management (40 points):
• 10+ years = 20; 8-9 years = 16; 6-7 years = 12; 4-5 years = 8; <4 years = 4; no proof = 0.
• Key personnel experience (20 points): based on CVs and organogram for Lead Portfolio Manager(s), Investment Team/Research Analysts, Risk Management Specialist(s). Scoring 20/15/10/5/0 based on suitability.
• Experience in comparable projects (50 points): appointment letters from similar completed projects for National/Provincial Government, Municipalities, Schedule 2/3 Public Entities, SOEs, DFIs, Public Pension Funds or similar institutional clients. 5 projects = 50; 4 = 40; 3 = 30; 2 = 20; 1 = 10; 0 = 0.
• Methodology and Investment Management Approach (10 points): comprehensive = 10; good = 7; satisfactory = 5; limited = 3; none = 0.

Price scoring: Ps = 80(1 - (Pt - Pmin)/Pmin).

Specific goals (20 points): 4 points each for enterprise owned by Black people, Women, Youth, Disabled, and SMMEs (QSE/EME).

MEGA may appoint one or more bidders, negotiate final fees, require presentations/interviews, or not appoint if bids do not meet requirements.

MEGA (Mpumalanga Economic Growth Agency), a Schedule 3D provincial entity, seeks an Equity Investment Firm to manage its equity investment portfolio for 36 months.

Scope of work:

• Portfolio management: discretionary management per investment mandate and policy; identify, evaluate and recommend equity opportunities; execute transactions and rebalance portfolio; develop investment strategies for long-term growth and income.
• Investment research and due diligence: comprehensive due diligence on opportunities; financial, commercial, legal and strategic assessments; market research, economic outlook reports and recommendations.
• Risk management: develop and maintain risk management framework; monitor performance and risk exposure; ensure compliance with investment limits and mandates; provide risk assessments and mitigation recommendations.
• Performance reporting and stakeholder communication: quarterly investment performance reports (returns, asset allocation, market commentary); regular updates; transparent communication with Finance and Investment Committee, Executive Management and Board; attend quarterly review meetings.
• Compliance and corporate governance: comply with all legislation, MEGA Investment Policy and governance framework; implement AML and KYC controls; incorporate ESG principles; manage shareholder proxy voting.

Deliverables:

• Approved investment management strategy and implementation plan.
• Ongoing portfolio management services.
• Investment due diligence reports.
• Quarterly investment performance reports.
• Quarterly market outlook and economic analysis reports.
• Quarterly risk management reports.
• Compliance and governance reports.
• Quarterly presentations to MEGA Finance and Investment Committee and/or Board.
• Ad hoc investment advisory services and strategic recommendations.

Bidders must submit a detailed methodology covering investment philosophy, portfolio management strategy, investment research methodology, due diligence process, investment decision-making process, risk management framework, ESG integration, stakeholder engagement, implementation plan and reporting framework. Scoring: comprehensive = 10 points; good = 7; satisfactory = 5; limited = 3; none = 0.

Company experience: must provide company profile showing years providing institutional equity investment management services. Scoring: 10+ years = 20; 8-9 = 16; 6-7 = 12; 4-5 = 8; <4 = 4; none = 0.

Key personnel: submit project team organogram and CVs for Lead Portfolio Manager(s), Investment Team/Research Analysts, and Risk Management Specialist(s). Only personnel proposed with CVs will be evaluated. Scoring based on qualifications and relevant experience: 20 (highly suitable), 15 (suitable), 10 (partially suitable), 5 (limited), 0 (not suitable or no CVs).

Comparable projects: appointment letters from similar completed projects for government, public entities, SOEs, DFIs, public pension funds or similar institutional clients. 5 projects = 50; 4 = 40; 3 = 30; 2 = 20; 1 = 10; 0 = 0.

Pricing schedule must be fully completed. Basis: AUM of R100,000,000. Items: annual management fee (% of AUM), once-off strategy and implementation plan, due diligence reports (4), quarterly performance reports (4), quarterly market outlook reports (4), quarterly risk reports (4), additional advisory services (20 hours), additional committee/board meetings (4). Provide subtotal excl. VAT, VAT, grand total incl. VAT, and grand total for three years incl. VAT. Prices are for evaluation only; final fees may be negotiated.

Pricing schedule (for evaluation only, not final fees):

• Basis: Assets Under Management (AUM) of R100,000,000.
• Items to price:

1. Annual Equity Investment Management and Advisory Fee – % of AUM per annum (quantity 1).
2. Investment Management Strategy and Implementation Plan – once-off (quantity 1).
3. Investment Due Diligence Reports – per report (quantity 4).
4. Quarterly Investment Performance Reports – per report (quantity 4).
5. Quarterly Market Outlook and Economic Analysis Reports – per report (quantity 4).
6. Quarterly Risk Management Reports – per report (quantity 4).
7. Additional Investment Advisory Services – per hour (quantity 20 hours).
8. Additional Investment Committee/Board Meetings – per meeting (quantity 4 meetings).

• Provide subtotal (excl. VAT), VAT, grand total (incl. VAT), and grand total for three-year period (incl. VAT).
• Prices are for evaluation; final fees may be negotiated with preferred bidder(s).
• National Treasury Instruction 2014 Cost Containment Measures hourly rates may be considered.
• No bid security, bonds, or guarantees are mentioned.

Mandatory requirements (failure disqualifies):

• Valid FSCA licence/authorisation to provide discretionary investment management services as a Financial Services Provider (FSP), valid on closing date.
• Company/CC/Trust/Partnership registration certificates.
• Proof of Professional Indemnity Insurance valid on closing date.
• Completed and signed SBD1, SBD4, SBD6.1.
• Letter of authority to sign bidding documents.
• Certified ID copies of directors/shareholders.
• Proof of CSD registration (detailed report).
• If any member is a government employee, letter of approval from Executive Authority.
• Certified copies of academic and professional qualifications of key members.
• CVs of all proposed key members.

Tax compliance:

• Must be tax compliant; provide SARS TCS PIN or CSD number.
• For consortia/JVs/subcontractors, each party must submit separate TCS certificate/PIN/CSD number.
• Bids from persons in service of the state, or companies/CCs with directors/members in state service, will not be considered.

Specific goals (20 points):

• Enterprise owned by Black people: 4 points.
• Enterprise owned by Women: 4 points.
• Enterprise owned by Youth: 4 points.
• Enterprise owned by Disabled: 4 points.
• Enterprise owned by SMMEs (QSE and EME): 4 points.
• Evidence must be submitted with the bid; failure to submit means no points claimed.

ESG principles must be incorporated into investment decision-making where applicable.

Contract period: 36 months.

• Successful bidder must sign a written contract form (SBD7).
• Bids valid for 120 days from closing date.
• Confidentiality: all bid information must be kept confidential and used only for bid preparation.
• MEGA may appoint one or more bidders, negotiate final fees, or not appoint if bids do not meet requirements.
• Fraudulent claims for specific goals may lead to disqualification, contract cancellation, recovery of costs, restriction from state business for up to 10 years, or criminal prosecution.

Three-stage evaluation: responsiveness, functionality (minimum 70/100), then price and specific goals (80/20). Functionality criteria: company experience (40), key personnel (20), comparable projects (50), methodology (10). Price scored using formula Ps = 80(1 - (Pt - Pmin)/Pmin). Specific goals: 20 points as per SBD6.1.