Investment Consulting Services

The Vendor is required to provide comprehensive investment consulting services for the employees’ retirement plan of the board of water commissioners.
- Investment advisory
1. Review and recommendations of investment policy statement (IPS)
• Monitor policy compliance and regularly communicate monitoring results to the committee and the board;
• Proactively review and communicate any recommended changes to the investment policy;
• Assist agency with review and updates of the operating guidelines accompanying the IPS;
• Support ongoing governance best practices, including documentation of fiduciary decision-making processes and communication of any relevant regulatory or industry developments that may impact the plan.
2. Asset allocation review and recommendations
• Consideration of risk;
• Downside and stress scenario analysis;
• Asset-liability implications;
• Modeling to support strategic decision-making.
- Manager selection and monitoring
1. Manager search and selection
• Defining manager criteria;
• Developing solicitation documents;
• Performing due diligence review of each manager;
• Preparing a profile summarizing the fundamental information about each manager;
• Receipt and evaluation of proposals and reporting of conclusions; and
• Manager fee negotiations and identification of lower-cost investment structures, as applicable
2. Performance evaluation and reporting
• Measurement of total plan performance and investment returns of individual managers
• Reconciliation of custodian and manager performance data.
• Differences in data are to be investigated and explained to agency staff.
• High level performance attribution
• Appropriate market benchmark and peer group comparisons
• Evaluation of performance relative to IPS criteria, including recommendations to retain, monitor, or terminate managers;
• Preparation of executive summaries highlighting key issues and recommended actions.
• Other performance metrics as agreed upon between agency and the consultant.
3. Ongoing portfolio monitoring
• Periodic review and manager interviews;
• Monitoring organizational, personnel, or strategy changes;
• Identifying managers requiring additional oversight;
• Providing formal written recommendations for retention, watch list placement, or termination.
- Fee management and benchmarking
• Conducting periodic fee benchmarking analyses, including comparisons to appropriate industry medians and peer groups;
• Identifying opportunities for cost savings, including lower-cost share classes or implementation structures;
• Supporting ongoing fee negotiations;
• Providing a comprehensive summary of total plan fees, including identified and realized savings, at least every three years, or more frequently as requested.
- Compliance and regulatory support
• Monitoring portfolio allocations relative to IPS targets on at least a quarterly basis;
• Identifying variances from target allocations and providing timely recommendations for rebalancing or other corrective actions;
• Advising on compliance with applicable investment guidelines and fiduciary standards;
• Communicating any material regulatory or industry developments that may impact plan governance or investment strategy.