Our Outsourced Chief Investment Officer (OCIO) Solution

Accessing the Markets

The key advantage of our OCIO model is that an organisation that does not have the resources to build out its own investment office can access the breadth of Goldman Sachs resources. This access can enhance the organisation’s investment process and ease the burden on the organisation’s staff, providing more time for the organisation to focus on important, high-level strategic decisions.

The OCIO model provides nimble implementation of investment views, allowing organisations to benefit from short- to medium-term imbalances in the market that might otherwise be missed.

A Growing Trend

An OCIO approach enables organisations to leverage a wide range of investment functions efficiently.

Adoption of the OCIO model continues to increase with 46% of endowments using an OCIO in FY 2024, up from 34% in FY2010, according to the 2024 NACUBO-TIAA Study of Endowments. The same study reported that the trend towards OCIO is strongest among endowments with less than $500 million in assets, where in-house resources are limited.

Important Functions of an OCIO

The OCIO model can be helpful across investment functions, including: strategic asset allocation, tactical asset allocation, portfolio construction and implementation, and education and reporting. Customised recommendations take organisational needs into account.

Investment committees can also delegate implementation functions like selecting and monitoring investment managers for each specific asset class under the OCIO model, lightening the day-to-day burden for staff and enabling timely action.

Streamline Committee Decision-making

Various factors can slow or even block investment committee decision making. Under the OCIO model, an investment committee can delegate the tactical asset allocation responsibility to the OCIO, enabling a much more dynamic and efficient investment process.

In addition, an OCIO can offer a range of educational opportunities to staff and board members. Relevant topics might include investing fundamentals, trends impacting charitable organisations, sustainable and responsible investing, and governance and regulatory developments.