Is an OCIO the Right Choice for My Plan?

Is an OCIO the Right Choice for My Plan?

Learn how to decide if the outsourced model is right for your plan.

Discretionary investment consulting, or the “Outsourced CIO” (OCIO) model, has generated a lot interest over the last several years among institutional and family investors alike. There’s increased demand for sophisticated investment manager and strategy research to help internal investment staff who are stretched thin.

The report discusses these benefits of the OCIO model:

  • Increased investment flexibility and timely decision making
  • Expanded resources
  • Enhanced governance structure
  • Fee and cost savings through scale
  • Customized investment solutions
  • Access to entire capital markets spectrum and best-in-class managers
  • Flexibility in levels of discretion
  • Managing complexities of an investment program

To be able to manage a strong-performing asset pool, Segal Marco Advisors believes OCIO providers should:

  • Be independent
  • Offer a single, up-front fee that is fully transparent
  • Have a track record
  • Be able and willing to customize portfolios
  • Have administrative and client service capabilities

There are generally two distinct decision-making structures to OCIOs: a centralized or a decentralized approach. When selecting between OCIO providers, knowing who is ultimately responsible for making decisions is critical.

The report includes a checklist of key questions go ask OCIOs.

Report — March 2018

Investment Insight, “Is an OCIO the Right Choice for My Plan?”

<em>Investment Insight</em>, “Is an OCIO the Right Choice for My Plan?” Read the Report
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Tim Barron, CAIA

Tim Barron, CAIA
Senior Vice President, Chief Investment Officer

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