Client Overview & Objectives
The investment committee of a faith-based foundation engaged North Pier to evaluate the effectiveness of its investment program and their OCIO partner.
Process
North Pier began with a comprehensive review of the foundation’s governance structure and investment policies, benchmarking performance and fees against peers from North Pier’s robust industry knowledge and data.
The review identified that while the IPS referenced an Investment Committee and some of its objectives and responsibilities, its structure and authority were not fully defined within the broader governance framework, and the foundation’s bylaws lacked some of the specificity and structure needed for effective fiduciary oversight. Additionally, the review highlighted opportunities for enhancement in performance benchmarking, risk monitoring, and cost tracking within the IPS.
A review of the investment program revealed consistent underperformance on both an absolute and risk-adjusted basis. Fee analysis showed that the OCIO arrangement carried costs slightly above peer benchmarks, raising questions about value and transparency.
Results
With North Pier’s guidance, the foundation implemented several key improvements:
– The Investment Committee’s role was more clearly defined in updated governance documents, reinforcing accountability and decision-making authority.
-The IPS was updated to incorporate more robust metrics for performance evaluation, including risk-adjusted returns, peer comparisons, and attribution analysis.
-A fee review led to a fee reduction along with greater transparency and a stronger emphasis on cost-effectiveness within the OCIO relationship.
By addressing these areas, the foundation enhanced its oversight, strengthened the investment committee’s confidence in fulfilling fiduciary duties, and positioned its investment program to better support the organization’s faith-based mission.