NIGP 94936: Investment Fees

NIGP 94936 Investment Fees, an Item code, encompasses investment management, advisory, and brokerage fees that state and local governments pay to third-party firms for portfolio management, compliance monitoring, transaction execution, and reporting on public funds. State and local treasurers, special districts, municipal authorities, and colleges solicit these services through RFPs and RFQs to manage portfolios typically ranging from tens to hundreds of millions of dollars. The scope includes broker-dealer services with SEC or FINRA registration, non-discretionary investment advisory aligned with state public-funds law, portfolio monitoring and rebalancing, transaction settlement, and monthly or quarterly reporting. Issuing bodies are typically smaller public entities—community colleges, local governmental authorities, municipalities, and city pension or deferred-compensation plan administrators—that do not maintain in-house investment teams and purchase these services on contract terms of one to six years with optional renewals.

Recent activity clusters in Texas, where San Jacinto Community College District (RFQ 27-02, due November 4, 2026) sought investment broker-dealer services to manage a $146–$225 million portfolio, and Brazos River Authority (RFP 26-1396, due August 31, 2026) requested non-discretionary investment advisory services for a $170 million portfolio. The City of Lubbock, Texas (RFP 26-19659-KM, due June 11, 2026) consolidated three separate 457(b) deferred-compensation plans totaling $38.2 million under a single recordkeeping and administrative vendor. The City of Salem, Oregon exercised sole-source authority for a $75,000 Moody's ratings fee (July 2026). Contracts require SEC or FINRA registration, proof of professional liability insurance (typically $1–$2 million aggregate), audited financial statements, and references from comparable public-sector or larger accounts. Evaluation typically weights firm and personnel qualifications heavily (40–50 points combined), with separate scoring for scope understanding, references, and proposed fees or service structures.