Institutional investors face complexity when comparing costs of OCIOs.
FundFire: Messy Fee Data Complicates OCIO Searches
Comparing outsourced chief investment officers (OCIO) fees can be complex. Especially when fee structures and underlying investment products vary among providers. Fundfire explains that institutional investors and search consultants alike might not be getting the transparency they need to make a clear decision. According to Mike Cagnina, Managing Director and Vice President here at SEI, “They’re not getting the entire picture when it comes to fees…that could lead to a decision where you’re actually paying more.” Couple that with a lack of industry standards and guidelines leaving the potential for fee structures to vary quite significantly. That’s why transparent fee data communicated upfront is so important during provider evaluations.
Information provided by SEI Investments Management Corporation, a registered investment adviser and wholly owned subsidiary of SEI Investments Company (SEI). Neither SEI nor its subsidiaries is affiliated with any firms mentioned herein.
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$238.5 billion in assets under management in the SEI institutional group as of 12/31/21.