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Pensions & Investments Special Report: CIO Outsourcing

In light of the recent market environment, Pensions & Investments released a special report on CIO outsourcing. Topics range from the need to adjust to volatile markets and uncertainty, to the need to diversify, to the ability to quickly make tactical changes. Overlaying these important challenges, which lead many institutional investors to look to OCIO providers, is the plethora of options, which highlights how important your choice in provider truly is. 

Read the P&I article: More volatility, alts underscore the need for expertise in OCIO.

Complexity can spark change.

Three key themes contribute to investors looking to OCIO.

  1. Today’s volatile markets and the growing complexity of investing have underscored the need for experienced OCIOs. Opportunities and avoidances available in the current market are often missed because of the lack of agility in adjusting a portfolio or market experience to know when to take advantage of a sudden change. How will your OCIO react to market volatility? Five key areas your OCIO should excel.

  2. Growing interest in ESG and DEI investments, paired with the complex market, drive need greater customization. Institutional investors are pushing to include more diversity, whether it’s diverse money managers or diversifying their portfolio, within their investments, leading to the need for tailored solutions. Comparing OCIOs? Some providers offer more services and customization. Learn what to look for in comparing them.

  3. More organizations, including larger asset owners, are turning to OCIO after the turmoil of internally managing their portfolio during the pandemic. Rising operational costs, need for investment complexity, losses from the Great Resignation, and interest in more in-demand money managers has led investors of all sizes to start moving toward outsourcing. Evaluation tools for a smooth OCIO process. Resources and tips on how to start your evaluation process.

More on OCIO

This information is provided by SEI Investments Management Corporation (SIMC), a registered investment adviser and wholly owned subsidiary of SEI Investments Company (SEI). Investing involves risk including possible loss of principal. There can be no assurance that your investment objectives will be achieved nor that risk can be managed successfully. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Bonds and bond funds will decrease in value as interest rates rise. High yield bonds involve greater risks of default or downgrade and are more volatile than investment grade securities, due to the speculative nature of their investments.

This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice. This information is for educational purposes only and should not be interpreted as legal opinion or advice.