Client Overview
A West Coast university foundation managing a $66 million endowment engaged North Pier to evaluate its investment program and governance structure. Initially, the Investment Committee intended to conduct a full OCIO search through a two-phase RFP process but sought an objective evaluation before proceeding. Based on our assessment and recommendation, the Committee ultimately decided that an RFP was not necessary at this time.
The foundation initially engaged North Pier because they faced concerns about:
- Governance & Oversight Gaps – The foundation’s governance documents, including the Charter, IPS, and contract, contained conflicting language and did not reflect how the Investment Committee was actually operating. These inconsistencies led to unclear roles and confusion among the IC, staff, and board.
- Performance Transparency – Reports lacked peer comparisons, risk-adjusted metrics, and identification of underperforming managers. No “Watch List” was provided, and key performance concerns were not addressed.
- Fee & Service Structure – Uncertainty about the competitiveness of OCIO fees and service alignment.
Key Findings & Impact
- Avoided Unnecessary RFP and Validated the OCIO: North Pier’s analysis validated that the OCIO and service team were delivering high-quality, informed advice. This gave staff and the IC confidence in their current provider and avoided the need for an unnecessary RFP, while still identifying areas for enhancement.
- Governance Strengthened – Recommended clearer policy language, fiduciary calendars, and oversight enhancements.
- Performance Insights Deepened – Recommended dual benchmarking: a long-term strategic index tied to plan objectives and a contract-based index reflecting OCIO tactical shifts.
- Fee Competitiveness Verified – Confirmed that OCIO fees were reasonable compared to peer institutions and recent North Pier searches for similar sized institutions.
Conclusion
Through North Pier’s guidance, the foundation optimized its investment oversight while maintaining continuity with its existing provider—achieving stronger governance, greater transparency, and improved decision-making without the need for a disruptive search. Ultimately, this instilled confidence in the foundation’s fiduciaries that the investment program was firmly positioned to support the university and its objectives.