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HomeMy WebLinkAbout2024 03 25 Consent 302 - AndCo Consent for Assignment of Investment Advisory ContractCONSENT AGENDA ITEM 302 CITY COMMISSION AGENDA | MARCH 25, 2024 REGULAR MEETING TITLE Consent for Assignment of Investment Advisory Contract SUMMARY AndCo Consulting, LLC has entered into a membership interest purchase agreement with Mariner, LLC with an anticipated close date of April 2, 2024. This acquisition is considered a change in control, and therefore deemed to be an assignment of the contract. SEC rules require client consent for Contract assignment. All terms and conditions of the existing contract will remain in full force and effect. FUNDING SOURCE All fees are paid by the Pension Trust directly. RECOMMENDATION The Board of Trustees has reviewed the document at their March 21, 2024 Meeting and recommended approval by the City Commission 1 2 Mariner Fact Sheet About Mariner Institutional • AndCo Consulting, LLC and Fourth Street Performance Partners, Inc. are each separate registered investment advisers that will be acquired by Mariner with an effective date on or about April 2, 2024. The firms will then operate under a combined brand, Mariner Institutional, which will advise approximately $108* billion in assets with 100 associates. • We believe every client is unique and therefore, we advise each one individually. Our Mariner Institutional framework will support this customization and the ability to solve unique challenges for our clients. Core Institutional Services Mariner Institutional will provide our clients the following general core consulting services: Traditional Plan • Investment Policy Development • Asset Allocation & Liability Modeling and Analysis • Manager Research • Ongoing Performance Monitoring • Trustee Education Defined Contribution • Fee Benchmarking • Recordkeeper Search & Review • Fund Lineup Selection • Performance Measurement & Reporting • Trustee Education • Regulatory Updates • Resource to the Board for Strategy and Decision-making • While there are numerous non-core services that are nuanced by client and plan type, the specific tasks and application of resources largely fall within one of these core services. • These core services can be implemented within a non-discretionary or discretionary framework, depending on client needs and preferences. • Our services are designed to provide leadership guidance, strategy and oversight to any institutional portfolio of assets. Institutional Clients Client Types Assets as of 6/30/23 (in Billions) Government $59.3 Corporate $16.2 Taft-Hartley $16.0 Non-Profit $13.0 Individual $4.2 Total $108.7* 3 © Mariner. All Rights Reserved. *As of 6/30/23 and represents AndCo and Fourth Street assets **As of 9/30/23 and represents Mariner This material is intended for informational and educational purposes only. The views expressed do not take into account any individual personal, financial, or tax considerations. As such, the information contained herein is not intended to be personal legal, investment, or tax advice or a solicitation to engage in a particular plan or strategy. All Information is as of the dates indicated. About Mariner • Mariner is a multidisciplinary financial services firm with $112 billion in AUA** and 1,571 associates. • Mariner is headquartered in Overland Park, Kan. with 98 locations and serves clients across all 50 states. Business Units Mariner Wealth Mariner Ultra Mariner Independent Mariner Workplace Mariner Institutional Wealth Services • Wealth Management • Estate Planning & Trust Services • Tax Planning & Preparation • Investment Banking, Valuation Advisory and Forensic Accounting Services • Insurance Solutions • Financial Wellness Platform and Coaching Values and Pillars Values • Caring – We care about our clients, our co-workers and our communities. We look out for one another and give to others. • Loyalty – We show loyalty to instill trust. We are loyal and trustworthy in all interactions. • Keep Promises – We keep our promises and do what we say. • Belonging – We foster a culture of security, support, and acceptance where each of our uniquely talented associates has a voice, and we listen. • Excellence – Excellence is an expectation. We strive to go above and beyond in all we do. • Optimism – We foster an optimistic outlook because attitude drive outcome. • Abundance – We show gratitude and seek opportunities that create abundance for our clients, associates and communities. Three Pillars • Best in Class Experience – For clients and associates. Positively impact the lives of many. • A Culture of Excellence – We strive for continuous improvement and accountability. • Fast, Intentional Growth – Speed is a force. Growth drives opportunity for all. Combined By the Numbers Advisors:1,205 Compliance & Legal: 33 Performance Reporting:36 Marketing:33 Investment and Manager Research:74 Information Technology:40 Operations:43 Practice Management:10 Accounting & Finance:26 Corporate Development & Strategy:10 Human Resources:34 Other Associates: 127 4 Clients first. To Our Valued Clients Happy New Year! We hope everyone had a wonderful holiday and we look forward to a great 2024 working together. In last year's firm update letter, I shared AndCo's approach to strategic decision making and how corporate investment has always been run through the filter of "Does this put our clients' interests first?" This simple question has been the foundational tenant of AndCo since our inception nearly 25 years ago. While we have continued to pursue and refine the objectives of our corporate strategy through this lens over time, we have also listened to feedback from clients and prospects regarding their desire for additional high-quality, single-provider services in the institutional space, including participant education, financial wellness, and in some cases, the ability to help individual employees with retirement planning if requested by clients and/or plan participants. As AndCo contemplated our future strategic position relative to the evolving needs of our clients and the institutional marketplace, we embarked on a thoughtful process of evaluating potential options that would enhance both our client relationships and the professional growth of our team members. We ultimately determined that partnering with a complementary firm to augment our services through enhanced infrastructure, human capital, and financial resources, was the best path forward for our clients and colleagues. We are thrilled to announce that AndCo will be Joining Mariner, a national advisory firm, as their new institutional platform. Mariner and AndCo share a strong cultural alignment focused on a client-first, objective approach. Mariner's purchase of AndCo represents a new institutional vertical in Mariner's service offerings that will combine AndCo's experience, knowledge, and services in the institutional consulting space with Mariner's strong position in the wealth space. We will operate as one firm positioned to provide comprehensive services to our valued clients. Importantly, since Mariner does not currently have an institutional advisory practice, the same AndCo team members currently supporting our clients will continue to deliver the same services, tools, and guidance our clients value. We have worked very hard over the years to earn your trust and we look forward to talking with you at our next meeting to share more information about this exciting new partnership and the consent process. If you have questions prior to our next meeting, please reach out to your consultant or to me directly via the contact information below as I would welcome the opportunity to speak with you. We deeply value and remain committed to our client relationships. Thank you for your partnership and the opportunity to continue serving you. CEO mikewtSiandcoconsulting.com 407-627-1801 Confidential information intended soleiy for the recipient and not for distribution to the public AndCo Consulting | 531 W, Morse Blvd. | Suite 200 | Winter Park, FL 32789 | (844) 44-ANDCO | AndCoConsulting.com 5