Fortune 100 Conglomerate 3(21) Investment Advisor Evaluation and Search
Client & Objective
A fortune 100 conglomerate with several 401(k) plans in a master trust engaged North Pier to evaluate and select a nondiscretionary §3(21) investment advisor for its defined contribution program. All plans share the same investment lineup, representing nearly $20 billion in assets across the distinct plans serving more than 100,000 participants. The Investment Committee sought an advisor to strengthen fiduciary oversight, optimize the investment menu and QDIA, improve reporting and benchmarking, and support vendor management and participant outcome analytics.
Process
North Pier conducted a two-phase engagement. First, we reviewed the IPS, investment lineup and history, QDIA rationale, fee and service schedules, recordkeeper reports, and participant-use data.
In phase two we drafted a focused RFP and sent it to a vetted list of qualified §3(21) advisors. We, compared proposals on capability, reporting fit, and price. The Committee advanced three finalists: North Pier moderated the meetings, checked references, and tested reporting samples and transition plans. We prepared selection materials, negotiated economics and service terms, and delivered an onboarding plan with a clear first-year calendar.
Results
-Selected a single advisor to oversee the shared lineup across all the plans.
-Negotiated improved pricing, with transparent cost
-Refreshed the IPS with clear standards for lineup construction, monitoring, and QDIA evaluation. Set a documented review cadence for funds, QDIA, recordkeeper service levels, and fees. Published a year-one oversight calendar with an implementation checklist.
-Implemented a unified reporting package covering performance, risk, fees, participant utilization, and litigation-sensitive metrics.
-Built a communications and committee education plan