SBCF Board of Directors Selects Sand Hill Global Advisors, LLC,
as the Foundation's Investment Adviser
At its March 2, 2016, regular meeting, the SBCF Board of Directors unanimously approved Sand Hill Global Advisors, LLC, a Palo Alto-based, employee-owned investment management firm with client assets exceeding $1.5 billion, as the Foundation’s investment adviser. Sand Hill will assist the Board in developing its investment policy statement and will help manage two pools of investment funds: (1) a $15 million Board-designated endowment with a long-term investment strategy, and (2) $54 million in non-endowment strategic funds to be spent over the next 7-10 years on major projects.
The decision to select Sand Hill came at the recommendation of the Ad Hoc Committee on Investment Strategy, which consists of Chair Ben Cohn and Members Frank Hedley and John McGlothlin, after a thorough review process. With the assistance of investment consultant Mark Hayes, Ph.D., a former managing director of the Stanford Management Company, the Committee evaluated the 17 proposals received in response to its Request for Proposals for Investment Management Services. The Committee held in-person interviews with five finalist firms and also conducted reference checks of the finalists.
In recommending Sand Hill, the Committee concluded that Sand Hilll offered the best overall fit for the Foundation’s long-term investment needs, including service, cost, independence, and understanding of the Foundation’s unique situation. In particular:
* The Sand Hill team demonstrates a clear understanding of the Foundation’s needs and the collaborative partnership the Foundation seeks to have with its investment adviser.
* Sand Hill is well suited to provide the hands-on support that the Foundation, as a new, lean nonprofit organization, needs as it develops its investment policy statement and takes possession of the restitution funds.
* Sand Hill offers a competitive fee structure to support a stable, long-term relationship with the Foundation.
* The Sand Hill team understands the Foundation’s unique needs as the administrator of the restitution funds, its accountability to the San Bruno community, and its mission to use the restitution funds to benefit the community through investments in projects, programs, services, and facilities that have significant and lasting benefits.
* The Sand Hill team understands the objectives and challenges of the Foundation’s two distinct pools of investment funds.
* Sand Hill is a SEC-registered, independent investment adviser, committed to the fiduciary standard, and thus its only interest is to provide the Foundation with the best possible investment advice. Sand Hill has no financial interest in any of the investment products it recommends to its clients.
Sand Hill Chief Executive Officer Brian Dombkowski and his colleagues Tony Craun and Kristin Sun made brief remarks to the Foundation Board, saying it was an "honor" to serve as the Foundation's fiduciary partner. They also expressed a "deep respect for the circumstances leading to the restitution funds" and for the Foundation's "extraordinarily compelling mission."