Background
North Pier was engaged to assist the trustees of a regional hospital review of the historical investment performance of their traditionally advised trustee directed investment program and educate the trustees on merits of transitioning to an OCIO manager.
Challenges
- Source high quality OCIO managers who understand the economics of the health care and hospital industry.
- Find an OCIO manager that could gain the trust of the investment committee, easing the transition to OCIO.
- Identify an OCIO with a sound plan for addressing under-performing illiquid legacy investments.
Process
- Sourced data and administered a Request for Information from over 45 qualified investment managers.
- Administered an RFP and performed detailed due diligence.
- Reviewed performance track records and performed in-depth investment analysis on six superior OCIO candidates.
- Assisted in the selection of three finalists and moderated finalist presentations and selection conference.
- Negotiated and reviewed fees and contracts.
- Provided oversight during asset transition.
Additional Due Diligence
Additional due diligence on the leading finalists revealed erroneous or misleading statements with regards to fees and OCIO revenue. This organization was eliminated, and the remaining organizations were re-interviewed by the committee.
Outcome
The transition from traditional advisor to OCIO resulted in over 50% reduction in fees as well as access to a lower cost portfolio
- Committee selected an OCIO manager and was able to comfortably transition investment responsibilities.
- The foundation experienced enhanced services, a significant reduction in fees and access to a lower cost portfolio.
- The transition to the new OCIO fund manager was seamless.