OCIO Fundamentals

What is OCIO How can OCIO help OCIO myth-busting What to look for Deeper insights Contact us

OCIO basics

What is OCIO?

OCIO stands for Outsourced Chief Investment Officer (also commonly known as implemented consulting) - the delegation of some, or all of the day-to-day management of your portfolio. You maintain control over the decisions that matter most to you (such as your strategic asset allocation) and draw upon the resources of your OCIO partner to manage day-to-day operations.

HOW CAN OCIO OUTSOURCING HELP?

Deepen your resources.

Outsourcing your investments will add depth and continuity, allowing you to focus on the decisions most critical to your organisation.

About risk management

Respond more rapidly in a crisis.

An OCIO partnership ensures your portfolio is monitored around the clock and can respond rapidly in a crisis.

Navigating through crises

Lower your investment costs.

An OCIO provider can use their scale, leveraging in-house capabilities at cost and negotiating more competitive sub-manager rates.

Learn about OCIO fees

Improve access to the best ideas

The right partner can significantly broaden the range of investable opportunities, robustly assessing, and providing access to, a much deeper pool of opportunities.

Improve alignment – ESG beliefs

Whether you're driven by personal or stakeholder values, mitigating risk or complying with regulation, ESG factors are a key consideration for many investors. Yet, as with many areas of investing, it's complicated. An investment partner can help.

Responsible Investing

Private Markets - Leveraging its power

The private markets category can be a powerful investment tool for overcoming low returns. But it demands greater levels of risk management and potentially large capital requirements, challenges an outsourcing partner can help you address.

Why private markets are no longer niche

Enhanced implementation capabilities – Execution is key

A skilled OCIO provider will be able to incorporate critical risk management functions, such as overlays and transition management, on an internal basis with a single point of accountability.

What to look for in an investment OCIO provider

INVESTMENT HANDBOOKS

A five part handbook that will help you define your goals and objectives, focus on governance and managing risk and develop a long term investment strategy.

Explore our collection

WE CAN HELP

If you're considering an outsourced CIO, we can help you find the right approach for you.

No obligation. Let's talk.

Request a call back

First Name *

Last Name *

Email Address *

Organisation name

State or Province *

Phone number *

By requesting this information you agree to receive marketing material from Russell Investments and understand you can opt out at any time. Personal information will be handled in accordance with Russell Investments Privacy policy.*

* Required field

OCIO MYTH-BUSTING

Top 3 concerns when transitioning to an OCIO partnership.

"I'll lose control of my investment program"

The reality is far removed. Each outsourcing partnership is based on the unique resourcing needs of the organisation. Fiduciary responsibility cannot be delegated; however, we can help you determine the right level of resourcing for your organisation. The ultimate authority remains with you.

Who does what

"Outsourcing hides fee layering"

Fee standardisation remains an elusive goal for the industry, and hidden or additional fees can be an issue with some providers. The best practice remains full fee transparency, particularly around the remuneration to third parties, with a simple "all-in" or "cost-plus" fee based on the scale of assets managed.

Fee transparency

"Strategies are over-diversified"

Portfolios can be over-diversified, with additional inclusions reducing return potential without reducing risk. Best practice providers have the toolset to accurately assess this dynamic alongside a broader array of opportunities to fine-tune, both in diversification and alignment to the investors' unique risk appetite.

CONSIDERING AN OCIO APPROACH

What to look for in an OCIO partnership.

KEY ASPECT 1

Integrated, holistic risk management

Accurate, timely and comprehensive visibility of risks at the total portfolio level forms the foundation for virtually all basic risk and portfolio management activities. Yet, with the complexity embedded in today’s portfolios, across public and private assets, integrated holistic visibility is surprising uncommon.

KEY ASPECT 2

Organisational focus and capability

Maintaining the full suite of capabilities required for any outsourcing solution requires significant commitment, scale and resources. Organisations with competing priorities, little leadership focus or lacking fully integrated capabilities will find it challenging to sustain a competitive edge.

KEY ASPECT 3

Industry specific experience

A partner lacking a well-grounded understanding of your industry will ultimately draw on your time to get up to speed (at your expense). In contrast, an industry specialist will be able to provide additional insight, and support, based on their experience guiding organisations with similar challenges.

Three people icon standing in circles with one in front

KEY ASPECT 4

The human element

Although very difficult to quantify, the relationship between your organisation and your outsourcing provider is of critical importance. The best partners will act as a seamless extension of your team, with aligned objectives and a cohesive approach.