Accessing the Markets
The key advantage of our OCIO model is that an organization 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 organization’s investment process and ease the burden on the organization’s staff, providing more time for the organization to focus on important, high-level strategic decisions.
The OCIO model provides nimble implementation of investment views, allowing organizations to benefit from short- to medium-term imbalances in the market that might otherwise be missed.
A Growing Trend
An OCIO approach enables organizations 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. Customized recommendations take organizational 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 organizations, sustainable and responsible investing, and governance and regulatory developments.
We provide asset allocation advice and portfolio construction, manager selection, monitoring, rebalancing, and reporting.
Organizations maintain decision making over the investment policy statement and asset allocation, with support from our team, and can delegate many of the day-to-day responsibilities to us.
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Investment Risks and Information. Goldman Sachs Private Wealth Management offers a range of products that you should carefully consider for their unique terms and risks prior to investing to ensure they are appropriate for your individual circumstances.
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Goldman Sachs & Co. LLC is registered with the Securities and Exchange Commission (“SEC”) as both a broker-dealer and an investment adviser and is a member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”).