No longer a new concept, the Outsourced Chief Investment Officer (“OCIO”) model has become a way of life to many endowments and foundations globally. What was roughly a $100 Billion industry prior to the Great Recession of 2008-2009 has now ballooned to nearly $2 Trillion with hundreds of firm options.
Selecting an OCIO provider initially and reviewing your OCIO investment manager regularly is a critical function of institutional governance responsibility. Properly implemented, outsourcing can help your organization address portfolio complexity, a lack of internal resources, risk management challenges, the need for timely decision making, and on-going pressure of cost reduction, while enabling trustees to focus on improving institutional governance. We believe an ideal OCIO relationship is a seamless extension of your institution’s fiduciaries and internal staff, and complement them with the additional resources needed to steward investments effectively.