Why it may be time to hire an OCIO

Understanding the benefits of an OCIO

For certain organizations, an outsourced chief investment officer can allow them to experience the best of both worlds: having a fiduciary who has the time, knowledge, and skillset to provide optimal investment services, while preserving resources that would have otherwise been spent on spinning up an internal investing function.

1. Accessing tailored investment services and offerings.
The OCIO collaborates directly with their clients to create custom investment strategies designed to achieve their targeted goals. Additionally, OCIOs can provide clients with investment opportunities via new and emerging asset classes and vehicles, like alternatives, active ETFs, and more.

2. Unlocking specialized research and resources.
Some OCIO firms come with proprietary research and resources that can complement their investment services, all of which can help optimize their clients’ portfolio performance.

3. Anticipating and adapting to market shifts.
Because an OCIO’s day-to-day responsibilities include monitoring market performance, they may be in a better position to deploy agile decision-making to ensure an organization’s investments are protected in uncertain environments – or to take advantage of favorable market conditions.

4. Creating resilient, scalable practices for long-term growth.
An OCIO can give clients a big picture view of future risks and opportunities, and help organizations build foundational strategies to maintain growth during challenging times.

5. Focusing more on what matters.
By eliminating the need for an in-house investment team, OCIOs make it possible for organizations to focus their energy and resources on the things that matter, like their mission, philanthropic outreach, or core business activities.

Learn more about the benefits of OCIO solutions for endowments and foundations.

Who can benefit from an OCIO?

Any organization that wants to remain accountable to and in control of its investment objectives while benefiting from the research and expertise of a third-party investment manager may want to consider using an OCIO.

A few examples of organizations that may benefit from an outsourced chief investment office include:

• Endowments
• Foundations and other charitable organizations
• Pension fund providers
• Businesses with employee retirement plans
• Insurance companies
• Trusts
• Healthcare providers

Maximizing resources with an OCIO

Resources are finite, especially for non-profit organizations that may need to do more with less. Although ongoing market monitoring and portfolio optimizations may be critical to the institution’s success, it could be too costly or time-consuming to spin up an in-house investing function.

An outsourced CIO can help address these resource challenges by taking on the function of an in-house investment team without requiring significant expense, time, and infrastructure. That means the organization can focus on what really matters: achieving its core mission.