Who We Are
The Schott Foundation is a Black-led national public fund serving as a bridge between philanthropy and grassroots organizers to advance racial justice in public education. Schott directly funds BIPOC-led grassroots education justice coalitions across the country and strategically connects the education justice movement with other social justice efforts focused on providing an array of supports children and families need to have a fair and substantive opportunity to learn and thrive. Schott resources the largest national network of grassroots BIPOC youth and parent education equity and justice organizers – The Opportunity to Learn Network – including four national alliances, 306 local organizations, in 32 states, 54 cities actively coordinating 120,000 people and impacting over 800,000.
In addition to making direct grants and leveraging funding from philanthropic partners, Schott provides partners with research, communications, and other forms of advocacy technical assistance to accelerate movement building efforts. Schott fundamentally believes that grassroots movements for racial justice and education equity are central to creating systemic change to address disparities that criminalize and deny children of color and low-income children a fair and substantive opportunity to learn.
The Investment Advisor will manage a portfolio currently valued at $6.5 million in agreement with the investment objectives outlined in the Schott Foundation Investment Policy. Please note that Schott is not looking for an outsourced Chief Investment Officer. Schott is interested in an advisor/consultant that can provide research, evaluation and recommendations to improve Schott’s investment portfolio.
Investment Advisor Responsibilities
The Investment Advisor shall be primarily responsible for:
- Providing recommendations related to governance and implementation or updates of the Investment Policy.
- Assisting the Board and Investment & Audit Committee in clarifying investment and impact objectives.
- Recommending target asset allocations to meet the investment objectives of the portfolios within the guidelines of Schott’s Investment Policy Statement and the Investment & Audit Committee’s goals.
- Recommending strategies considered appropriate for implementing the Investment Policy Statement.
- Providing ongoing research, performance, and due diligence on recommended investments.
- Providing performance reports at least quarterly for the Investment & Audit Committee and as needed by the Board.
- Providing ongoing education on topics relevant to investment strategies for nonprofit organizations.
- Researching, analyzing, and proposing investments with socially responsible organizations and flagging those investments that may not align with Schott Foundation’s values
- Becoming an invested partner in the effort to increase resources to grassroots racial and education justice organizations.
- Activating its institutional capacity to support racial equity and public education.
Schott Foundation is requesting the following information from interested parties:
- Contact information:
- Phone Number
- FINRA Rep Number:
- Firm’s corporate structure. Please provide a general description of:
- the corporate structure of the firm, including the legal form of organization,
- the parent company (if applicable), and any affiliated companies,
- strategic partnerships, and joint ventures,
- If any significant short-term changes to the firm’s corporate structure, senior management, ownership, or staffing are anticipated, please also note these.
- Since inception has the firm, the Primary Consultant(s) or any other officer or principal of the firm been involved in any business litigation, regulatory, or other legal proceedings or government investigation involving allegations of fraud, negligence, criminal activity, or breach of fiduciary duty relating to investment consulting activities? If so, please describe the case(s), provide an explanation, and indicate the current status.
- Please describe the composition of your company’s senior leadership, as well as the Asset Advising division leadership by gender, racial demographics, and years of service
- How does your firm and representatives support racial equity, public education as well as Black and/or other minoritized communities?
- How does your firm support historically underrepresented asset managers?
- Please provide a biography of the key personnel that will be assigned to Schott Foundation account including:
- Total years of institutional investment experience:
- Total years with the firm:
- Educational qualifications:
- Total dollars under advisory and average client portfolio size:
- Please explain how the team dedicated to our account would function. Please be sure to identify the following but not limited to:
- who would be the client relationship lead?
- who would be responsible for analytical tasks??
- who will be the back-up personnel assigned to this account in case of employee turn-over or temporary absences?
- Please describe the levels of insurance coverage, including the amounts of errors and omission insurance and any other fiduciary professional liability insurance your firm carries.
- Please list the number of current clients and assets the firm service as of June 30, 2022. (Performance evaluation services or project-based work alone are not considered full-service retainer investment consulting relationships.)
- If the firm is selected as 1 of 3 finalists, please confirm that references from other not for profit clients will be provided.
3.Investment and/or Fund Research
- Describe the structure of your research. How many professionals in your organization are assigned to investment fund research, selection, and monitoring?
- Please describe your selection or review process for investment/fund selection including the frequency of review after an investment has been selected or included in a portfolio.
- What guidelines do you utilize with respect to asset allocation and recommending possible termination of an investment fund?
- When researching new investments or funds do you assess the organization’s social responsibility? If so, how?
- Do you include some demographics metrics in your search for investments and/or funds? If yes, please provide an example.
- Describe your asset allocation methodology.
- Describe your process for managing an investment watch list and recommending the replacement of investments within a portfolio.
5.Performance Measurement, Monitoring and Reporting
- Describe the time frame in which you deliver standard reports. Can the firm provide custom reports?
- Schott Foundation is specifically interested in reports that demonstrate the diversity and how socially responsible organizations are. Do you have, or can provide, these types of reports for the investments that will be part of this portfolio?
- Confirm that the firm will provide a secure online portal for us to access our account.
Fee Proposal and References
- Please provide a fee proposal for full-service, fee-based investment consulting for the next three (3) years, including a list of all services that would be included in the fee and those services that would result in additional fees. Please include a breakdown of one-time set up fees, administrative fees, investment management fees, reporting fees, and transactional fees.
- Does the firm have a schedule to re-asses fees? Under what circumstance the fees provided in this RFP can be adjusted?
- Please present a sample proposed Long Term Portfolio (i.e., 10 years) and Intermediate Term Portfolio (i.e. 5-7 years) that is consistent with the target return and risk tolerance profile inherent in our Investment Policy. This provides a framework to help us understand your approach, expected net returns, and cost structure of our asset holdings.
- Please provide the contract language used by your firm to describe your firm’s fiduciary role. How will your firm/team educate the Investment Committee and Schott’s Board of Directors on fiduciary responsibility?
- Non-discrimination: Please confirm that your organization and any subsidiary or related entity that may provide services to Schott Foundation under this relationship does not discriminate against any employee or applicant on the grounds of race, color, religion, sexual orientation, gender, gender identity, age, disability, national origin, or ancestry. Please paste the policy text or attach a copy of your policy.
Please provide the following sample reports and information as exhibits to your proposal:
1.Sample Monthly Performance Monitoring Report
2.Quarterly Investment Performance Review Report
3.Annual Investment Performance Review Report
Schott’s goal is to complete the review and selection process for this RFP based on the following timeline:
1.August 24, 2022: Deadline to receive proposals
2.August 24-26, 2022: Proposal review
3.September 6-7, 2022: Interview with finalists
4.October 19, 2022: Notification of decision to finalists
Please submit completed package in a single PDF to Diego Alvarez Director of Finance and Operations at email@example.com . References to outside online sources (links) are acceptable. Documentation received on or before 8PM EST on August 24, 2022 will be reviewed and given priority consideration.
To obtain a copy of the Schott Foundation Investment Policy for the purposes of completing your submission, please reach out to Diego Alvarez at firstname.lastname@example.org.
The following questions will be part of the interview process. We are providing these questions to allow you to prepare for the interview process. You will have approximately 2 weeks from the time you are notified of being selected as one of the finalists until the actual interview.
- Describe your process for rebalancing a portfolio, including how often you recommend re-balancing, conditions that may trigger an immediate or urgent re-balances, etc.
- Please describe how benchmarks (KPIs) are chosen or developed and how performance is compared to similar portfolios. Can the firm provide custom benchmarks?
- Discus how you would structure the relationship between your firm and its advisors and Schott’s Board of Directors, Investment & Audit Committee, and Leadership Team.
- Please review and comment on any changes you would propose to Schott’s Investment Policy and the reason for such a change.
- In general, what key strengths or competitive advantages do the firm and your team possess that would generate superior performance and service?
- Please describe your new client onboarding process and timeline for the transition of our portfolio if Schott were to retain your firm. Please assume a decision of October 19th, 2022, for your timeline.