Other Areas of Expertise:
Proxy Voting: Marquette does not provide proxy-voting services.
However, our firm conducts analysis for our clients to find the most
cost-effective solution that fits the client’s needs. As necessary,
our firm will conduct a search for a third party proxy voting service
provider. Marquette maintains an internal database of proxy voting
services and performs interviews with the providers.
Socially-Responsible Investing: Marquette Associates has a long
history of working with organizations that have socially responsible
portfolios through the use of social screening as well as socially
proactive investments. Typically, Marquette consultants work with the
Client to define the specific social and ethical parameters in the
Investment Policy and Investment Manager Guidelines for the program.
Additionally, Marquette works closely with the client to review and
select investment management firms that have experience working with
socially responsible clients. Marquette often utilizes investment
management firms that have specific socially responsible products that
meet the requirements of each organization. Lastly, consultants
monitor our client’s portfolios on a quarterly basis to ensure
compliance with investment policy regarding financial and
social/ethical constraints.
Securities Lending: Marquette frequently reviews securities lending
programs for our clients. Our recommendations in this area focus on
(a) the sophistication of the lending entity (usually your custodian)
to monitor and maintain the program, (b) the credit analysis performed
by the lending institution on the borrowing firms, (c) the investment
guidelines and quality of the collateral pool investments, and (d) the
attractiveness of the revenue sharing split between client and lending
agent.
Marquette has assisted clients in the design, development,
implementation, monitoring, and regular reporting on these types of
programs. In all cases, Marquette seeks to ensure the program is being
implemented with the optimal amount of revenue being shared with the
client while minimizing the client’s risk exposure.
Custody Searches: Marquette has assisted several clients to find an
asset custodian. The process includes reviewing candidates, preparing
a written report, and recommending appropriate organizations. As
needed, we will help assist in the coordination of final presentations
and on-site visits, as well as fee negotiations. Once a custodian is
selected, Marquette will coordinate and oversee the asset transfer
process.
Commission Recapture: Marquette believes that commission dollars
represent fund assets which should be used prudently and in the best
interest of participants and beneficiaries. It is also clear that a
prudently managed commission recapture program can lower a fund’s
transaction costs. Steps can be taken to minimize the negative impact
that timing and market impact costs have on a portfolio. Additional
safeguards to ensure an effective program include:
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Reviewing optimal trading volumes for each manager
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Customizing any instructions to the investment managers regarding
directed trading
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Reviewing and monitor the commission recapture program
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Encouraging the investment manager to communicate to the fund any
trading issues which may affect best execution
Marquette works with each client to discuss the advantages and
potential disadvantages of a commission recapture program. For those
clients that choose to implement a program, Marquette will assist in
the search and implementation processes of an independent commission
recapture provider.
Spending Policies: Marquette believes that the appropriate spending
policy can have a significant impact on the long-term asset
allocation decision for an investment program. The firm works with
the Investment Committee in evaluating the current spending policy
and recommends possible improvements. Regardless of the specific
type of policy or the size of the spending, Marquette integrates the
spending decision, cash flow needs, and associated risk tolerance
into its asset allocation modeling.
Employee Education: Marquette believes the cornerstone to any
successful employee compensation investment program is well
researched, clearly articulated, and user-friendly employee education
materials. Education materials are designed not only to make
relatively difficult investment decisions easier for participants, but
also to encourage participants to plan and participate in the
additional savings for their retirement. Marquette has extensive
experience in working with clients in order to make their education
efforts more effective.
