// Outsourced CIO Selection
Harness objective, data-driven techniques to reveal an OCIO's true track record of value added.
Data-driven support for your search.
As the outsourced CIO model balloons in popularity, institutions have an increasing number of providers to choose from. Yet diverse objectives, varying discretion levels and legacy investments make it difficult to isolate and compare OCIO performance.
Given the "one-shot" nature of the commitment to a multi-year OCIO relationship, it's particularly critical to ensure that the chosen firm can add value net of its fees. Empirically can help you identify which search candidates are most likely to deliver the performance parameters you seek in the future, and provide you with a clear framework to monitor their value added during ongoing review.
Enhance your other diligence efforts with our analytics, whether you're working internally or using a search consultant. You'll gain the conviction you need to choose an outsourced CIO with confidence.
OCIO Custom Analytics Suite
Leveraging advanced technology, proprietary data, and deep expertise to support clients' selection and monitoring efforts.
Advanced strategy simulation with complex constraints.
Decomposition, replication and substitution of return sources.
Flexible scenario analysis, decision modeling and risk evaluation.
Key Diligence Questions
Select a topic area to view examples of the types of questions we can answer, after customization to the case at hand, to support search and review processes.
- How much value has the OCIO provider added within the scope of its discretion? What are the sources of the performance?
- What is the probability that an unskilled (rules-based) asset allocation model would have achieved results that were as good or better?
- What information does the OCIO's performance for clients with differing objectives contain about its prospective performance with our portfolio?
- How should OCIOs with differing approaches and track record lengths be compared?
Cost, Value and Passive Alternatives
- What is the best passive investment alternative (such as a custom index) available for the institution's objectives? How does its risk and net-of-fee return profile compare?
- How unique are the performance characteristics being offered by the OCIO, versus available alternatives? What is the probability the OCIO will add value net of fees over a 3- and 5-year period?
ESG and Non-Financial Priorities
Understanding a prospective OCIO's ESG philosophy and implementation process is essential for determining whether it will be able to meet your requirements. View our ESG Capabilities for more detail about how we can help you rigorously address considerations related to:
- Responsible investment
- Climate change
- Manager diversity
- Sharia compliance
- Other custom priorities
Integrative Decision Making
- Which candidate provider achieves the best balance between multiple competing objectives, including both performance and other considerations?
- How would the conclusions change if the weights of the objectives were different?
- Planning ahead, what tolerance for underperformance should be permitted before terminating the outsourced CIO?
Featured Insight //
How To Evaluate OCIO Performance
Read our guide discussing how to identify which among the ever-growing number of outsourced CIO providers can generate strong investment performance.Read Now >>
More Than Just OCIO Evaluation
Explore how we power better due diligence across multiple asset classes.