The basics
What is OCIO?
OCIO stands for Outsourced Chief Investment Officer. This is when an organization delegates either some or all of the day-to-day management of its investment portfolio to a qualified firm. By hiring an OCIO, you retain control over important decisions like strategic asset allocation. Your OCIO partner manages the day-to-day investment management.
HOW CAN CIO OUTSOURCING HELP?
OCIOs improve access to the best ideas
The right partner can significantly broaden the range of investment opportunities - robustly assessing, and providing access to, a much deeper pool of opportunities.
Improve alignment – The ESG Roadmap
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 outsourcing partner can help.
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.
Enhanced implementation capabilities – Execution is key
A skilled outsourced investment management provider will be able to incorporate critical risk management functions, such as overlays and transition management internally, providing you with a single point of accountability
OCIO MYTH-BUSTING
Top 3 concerns when transitioning to investment management outsourcing.
"Outsourcing hides fee layering"
Fee standardization remains an elusive goal for the industry and hidden or additional fees can be an issue with some providers. The industry 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.
Considering an outsourced investment approach
What to look for in a provider.
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
Organizational focus and capability
Maintaining the full suite of capabilities required for any outsourcing solution requires significant commitment, scale and resources. Organizations 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, a partner who is an industry specialist will be able to provide additional insight, and support, based on their experience guiding organizations with similar challenges.
KEY ASPECT 4
The human element
Although exceedingly difficult to quantify, the relationship between your organization 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.
OUTSOURCING GUIDE
Tools and practical advice to help determine the right investment outsourcing model for your organization.
RFP BUILDER
Our Request For Proposal Builder helps to ensure you ask the right questions when searching for the ideal partner.
LATEST OCIO BLOG POSTS
Hear from our experts on the latest on outsourced CIO.
Our approach
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What's next
We'd love to talk.
Please reach out to me directly through this form.
Lisa Schneider, CFA
Managing Director,
Head of Client Solutions
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