Why You Need One
The Outsourced Chief Investment Officer OCIO
Recent studies have found that the typical in-house CIO organization spends several million dollars per year on people, technology and other resources. Unless you have several billion dollars of assets to manage, this level of cost cannot be justified. You need an outsourced CIO (OCIO) service with the same approach and capabilities as the in-house model but shared with other entities.
The OCIO must have the same independent, objective and conflict-free structure but be designed to serve multiple clients – much like a buyer’s cooperative.
The OCIO delivers a similar dedicated research and strategy approach to the investment function as the single-entity CIO and, if done properly, does so at a very low cost. The operational efficiencies of a properly structured CIO today make it possible to provide this service at a very reasonable cost.
When powered by today’s highly economical outsourced technology that serves the investment industry, combined with the cost savings of passive execution of strategies, the clients of the OCIO realize better net returns.