What Can an OCIO Help With?
While hiring an Outsourced Chief Investment Officer (OCIO) may seem like it has a high initial cost, and may feel like you are possibly giving up control of your investments’ performance, it can actually be the opposite. Hiring an OCIO gives you access to experience and resources you may not otherwise have, while also freeing up time for other tasks and eliminating or reducing costs that will improve the value proposition and experience for the client. Learn more here about how hiring an OCIO as a fiduciary can help you build a cost effective and efficient investing program for your organization.
There are many internal problems that an organization may face that an OCIO can help combat. It may be a sign your organization is having problems and would benefit from an OCIO solution if one or more of the following is true:
- You are having a hard time finding or keeping senior staff
- There are drawn out decision-making and execution processes
- You have high investment program costs
If you’re considering hiring an OCIO and it sounds like the right solution for you, make sure you’re aware of some of the many benefits it provides:
Provide Deeper Experience & More Resources
Hiring an OCIO provides all of the expertise of a well-rounded investment office without having to maintain it in-house. Generally, OCIOs are committed to constructing a portfolio that outperforms your current portfolio and strikes the right balance of risk and return. An OCIO is specifically trained to focus on every aspect of investment and portfolio management. OCIOs have the needed expertise to manage the full range of asset classes and complex investment strategies, and because of this, can implement more advanced strategies. An OCIO also has access to programs that provide more in-depth knowledge of risk management analytics and operations management.
Achieve Broader Goals as an Organization
While an OCIO is mostly involved in investment research, your OCIO should also be an extension of the firm and part of organizational-level and higher up discussions as well. Communicating with your OCIO about all business goals and objectives will help to align all aspects of the organization to better create a personalized investment strategy to meet overall business goals.
When an OCIO takes responsibility for day-to-day operations of the portfolio, they provide deliverables, research, and market information that can inform decision-making. This can streamline company views with a singular, overall perspective which will eliminate the need for more meetings and consulting others in order to get things done, saving time and resources. This also allows you to focus on the strategic aspects of the investment program and monitor the OCIO’s business accomplishments compared to your goals.
While it may sound like giving up control of the investment program, ideally with the right OCIO and proper communication, you’re actually able to have more control since the OCIO is trained on your specific organization’s best practices.
Cut Operational Costs and Save Time
Not having to build and maintain a fully staffed investment office will save money and time because you won’t have to recruit, vet, and re-train new staff. An OCIO already has access to the necessary systems to create an investment policy, manage risk, and measure performance, which saves your organization from having to pay for these systems. A seasoned OCIO can perform portfolio management more efficiently considering it’s their only task, as opposed to in-house staff that is also tasked with other objectives.
Although an OCIO may have an initial higher cost than an internal team, it’s important to consider the increased efficiency of the investment program which can contribute to a lower overall cost. Contact Wealthspire Advisors today to discuss our full-service OCIO model.