The vendor required to provide investment advisory services for include:
• Engage a firm and client service team with significant institutional and not-for-profit healthcare system experience; this includes experience with governmental healthcare entities
• Engage a firm with strong capabilities in providing independent, unbiased advice for asset allocation, risk analysis, and manager research and due diligence
• Evaluate and implement modifications to its investment platform approach for better alignment to best practices.
- Client approach and structure of investment advisory services
1. Approach to providing non-discretionary advisory services:
• Approach and experience in providing investment advisory services aligned to the expected scope of services, both generally and to non-profit healthcare providers in particular.
2. Working relationship:
• The process or approach your firm uses to establish the working relationship and parameters between the advisor and agency management and governance.
• Identify key areas to be defined up-front and the degree to which agency can put in place a structure that is specifically tailored to the system (versus adhering to a more strictly defined relationship template established by your firm).
• Discuss whether and how this relationship can change over time.
3. Meeting sequencing and agendas:
• Offer best practices or unique insights that may contribute to a successful investment platform as it pertains to ongoing relations with management and governance.
• Recommended quarterly and annual activities, distinguishing between what is performed between the advisor, management, and governance.
4. Governance best practices:
• Offer your thoughts on practices that should be considered by agency to foster its investment platform, exceed its fiduciary duties, and put its advisor in the best possible position to meet its objectives.
5. Implementation practices:
• Identify the day-in-the-life process and workflow recommendations that assure communication, accountability, and quality control for investment decisions.
- Investment services platform
1. Investment services and unique qualities:
• Capabilities in providing investment consulting services
2. Research team approach:
• Research team’s approach to selecting approved strategies.
• Provide the number of current approved and top tier managers or strategies (or equivalent).
• The number of total strategies or managers followed by the research teams.
• These preferred managers or strategies are organized and ultimately selected for agency.
3. Manager surveillance approach:
• Experience in researching, selecting, and monitoring investment managers or otherwise implementing the investment strategy.
• Discuss your ability to ensure access to recommended managers.
• Negotiation participation concerning fees and minimum account sizes on behalf of your clients.
• Offer limits or methods to avoid overinvesting in one sector or manager.
4. Proprietary vs. open relationships:
• Approach to using proprietary products – investment products, banking, custodial, etc. – versus using a range of service providers.
• If there is a bias toward or requirement for using proprietary solutions, please discuss the advantages and considerations and whether the approach is used for narrow purposes or on a broad basis.
