Professional Services Industry Association Investment Consultant Evaluation
Client Context
A professional services industry association overseeing an approximately $3 billion multiple employer collective trust and had a long standing relationship with their investment consultant and were generally satisfied. Still, the association’s trustees and leadership wanted an independent basis to confirm that the relationship remained effective, competitively priced, and aligned with their fiduciary responsibilities.
The Challenge
The client was not seeking change for change’s sake. Instead, it wanted to understand whether its current consultant continued to represent the right fit relative to a specialized and difficult-to-source marketplace.
The association sought to validate the quality of incumbent services, assess fee competitiveness, identify any opportunities for improvement, and determine whether the findings supported a broader market review or full RFP.
North Pier’s Approach
North Pier conducted an independent evaluation of the incumbent relationship, the investment program, and a select group of qualified alternatives.
The process included trustee, management, and staff interviews; trust governance review; fiduciary education; investment program and historical performance evaluation; RFI development and administration; candidate sourcing; proposal analysis; and presentation of findings.
Because the relevant provider universe was limited due to the highly specialized nature of the marketplace, North Pier’s sourcing and industry knowledge were central to identifying appropriate comparison firms.
Key Areas of Review
The evaluation considered business structure and ownership, breadth and depth of services, fiduciary standing, defined contribution and multiple employer plan experience, reporting, investment program support, and pricing.
What the Client Learned
The review confirmed that the incumbent compared favorably overall to qualified competitors. Performance had been strong, fees were competitive, and the incumbent’s services remained well aligned with the client’s needs.
The process also gave the client a clearer view of the specialized provider marketplace. Each firm reviewed was broadly qualified to serve the association, giving the client confidence that alternatives existed if its needs changed in the future.
Outcome
The client was able to document a prudent monitoring process, confirm the strength of the incumbent relationship, and identify an opportunity to negotiate fee savings.
North Pier recommended that the client consider a full-market RFP in three to five years, or sooner if future developments suggested the need for broader review.
The engagement gave the association confidence in its current relationship while creating a clear path to improve economics and revisit the marketplace at the appropriate time.