About GSIS and the OCIO model

What is an Outsourced Chief Investment Officer?

An Outsourced Chief Investment Officer, commonly called an OCIO, is a financial advisor that assumes discretionary responsibility for defined investment decisions as agreed to by the client. Depending on the engagement, an OCIO may help establish investment policy, develop asset allocation, select and monitor investment managers, implement portfolio changes, manage liquidity, oversee risk, and report results. The scope of authority is set out in the investment policy statement and advisory agreement.

How is an OCIO different from a traditional non-discretionary consultant?

A traditional investment consultant generally provides research and recommendations while the client or investment committee retains responsibility for approving and implementing most decisions. An OCIO may receive discretion to implement decisions within agreed guidelines. This may shorten the time between analysis and action, but it does not remove the client's oversight role. The exact division of responsibility varies, so prospective clients should review the investment policy statement and advisory agreement carefully.

Is GSIS a Registered Investment Adviser (RIA) and a fiduciary?

Yes. We are an SEC-Registered Investment Adviser. In providing investment advisory services, we are subject to a fiduciary duty that includes duties of care and loyalty. This means we must provide advice in the client's best interest and make full and fair disclosure of material conflicts of interest. SEC registration does not imply endorsement by the SEC or a particular level of skill or training. Our current regulatory disclosures are available in our Form ADV and Form CRS.

Is GSIS a bank, broker-dealer, or investment product sponsor?

No. We are not a bank, broker-dealer, or investment product sponsor, and we do not create proprietary investment products. Our structure is intended to limit certain product-related incentives, although conflicts can arise in any advisory relationship and are described in our regulatory disclosures. Prospective clients should review our current Form ADV, Form CRS, and advisory agreement for complete information. Our only source of revenue is the advisory fees our clients pay us directly.

Who owns GSIS?

We are 100% employee owned. Our Form ADV Part 2A identifies the principal owner, and Schedule A to Part 1A identifies our direct owners, executive officers, and control persons. Information about our ownership, control persons, and affiliations can change, so prospective clients should review our current regulatory disclosures.

Who GSIS serves

Who typically uses an OCIO?

OCIO services may be appropriate for families and charitable organizations that want a more coordinated investment program, additional investment resources, or clearly delegated day-to-day decision making. We work with high-net-worth individuals, family offices, nonprofit institutions (donor-advised funds, endowments, foundations, higher-ed organizations, faith based, civic and public service organizations) and corporations. Whether the OCIO model is appropriate depends on portfolio size, complexity, governance, liquidity, tax circumstances, and the scope of services required.

Does GSIS work with high-net-worth families including their family offices?

Yes. We work with high-net-worth and multigenerational families, including closely held business owners, family offices and executives. A family portfolio may involve taxable and retirement accounts, trusts, concentrated securities, private investments, charitable goals, estate planning considerations, and future liquidity events. We develop the investment program around the family's objectives and constraints and can coordinate investment-related matters with the family's attorneys, accountants, trustees, and other advisers who would provide legal or tax advice.

Does GSIS work with foundations, endowments, and nonprofit organizations?

Yes. We work with charitable organizations. Depending on the engagement, an investment program may address spending needs, intergenerational equity, liquidity, governance, risk, asset allocation, manager oversight, and board reporting. The objective is to connect the portfolio to the organization's mission and operating requirements. The exact services and authority are established in the advisory agreement and investment policy statement.

Does GSIS work with institutions?

Yes. We provide advisory services to donor-advised funds, endowments, foundations, higher-ed organizations, faith based, civic and public service organizations. Depending on the engagement, we may provide portfolio management and select or monitor outside investment managers. The specific services, decision-making authority, and client responsibilities are defined in the advisory agreement, investment policy statement, and other governing documents.

Is there a minimum portfolio size to work with GSIS?

We do not have an account minimum. Our asset-based portfolio management fee is subject to a minimum annual fee of $25,000, which may affect whether an engagement is economically appropriate for a prospective client. Fees and requirements can change, so prospective clients should review the current Form ADV and proposed advisory agreement.

Governance and investment policy

What is an investment policy statement?

An investment policy statement, or IPS, is a governing document that explains the purpose of a portfolio and establishes a framework for managing it. An IPS commonly addresses objectives, time horizon, risk tolerance, liquidity, spending or distribution needs, asset allocation guidelines, permitted investments, rebalancing, benchmarks, and the responsibilities of the client and adviser. It should provide enough direction to support consistent decisions while allowing appropriate flexibility as circumstances change.

Who is responsible for creating and maintaining the IPS?

We can help a client develop or update an IPS based on the client's objectives, governing documents, liquidity needs, tax considerations, risk tolerance, and decision-making structure. The client, board, committee, trustee, or other authorized governing body is responsible for approving the policy. The IPS should be reviewed periodically and when material circumstances change. It is a living governance document, not a guarantee that investment objectives will be achieved.

What decisions can GSIS make for a client?

The authority granted to us depends on the advisory agreement and IPS. In a discretionary engagement, we may be authorized to allocate assets, select or remove managers and investment vehicles, rebalance the portfolio, and implement other investment decisions within approved guidelines. The client retains the responsibilities and approvals assigned to it, including oversight of our work and communication of material changes in circumstances that would impact the management of the portfolio.

Does hiring GSIS as your OCIO mean a board or family gives up control?

No. A board, committee, trustee, or family establishes the portfolio's purpose, approves governing policies, selects and monitors GSIS, reviews reporting, and communicates changes in needs or constraints. A clearly defined discretionary arrangement can make decision rights easier to understand, which may allow the client to focus on governance while GSIS handles the responsibilities delegated to it.

How often should an IPS be reviewed?

An IPS should be reviewed on a regular schedule and whenever there is a meaningful change in the client, portfolio, or governing environment. Examples include a change in spending needs, a business sale, a large contribution or distribution, revised liquidity requirements, a change in tax status, new liabilities, or an organizational transition. A review does not always require a policy change. Its purpose is to confirm that the document still reflects the client's circumstances and intended decision process.

GSIS Investment philosophy and portfolio construction

What is GSIS's investment philosophy?

We pursue risk-adjusted net of fee return for our clients. We describe our philosophy as long term, valuation aware, risk managed, diversified, and focused on net of fee results. We generally use a five-year or longer perspective, evaluate economic and market information across different horizons, and adjust portfolio exposures when expected risk and return appear to change meaningfully. The approach does not depend on consistently forecasting short-term market movements. Portfolio decisions remain subject to each client's objectives, policy, liquidity, taxes, and risk tolerance. Valuation and expected-return assessments are estimates, and actual results can differ materially.

How does GSIS build portfolios?

We begin with the client's objectives and constraints, then develop an asset allocation intended to balance return needs, risk, liquidity, time horizon, taxes, and spending or distribution requirements. Public market exposure may be implemented with exchange-traded funds, passive-based strategies, or active managers. Private and semi-liquid investments may be considered when they fit the client's circumstances. The resulting portfolio is monitored and rebalanced within the guidelines established for the relationship.

How does GSIS employ Dynamic Active Strategic Allocation?

Dynamic Active Strategic Allocation, or DASA, is our framework for making strategic asset allocation decisions while allowing measured changes as valuations, expected returns, risks, and economic conditions evolve. It is intended to remain grounded in long-term relationships rather than short-term trading. Portfolio tilts may not be profitable and may underperform a static allocation or benchmark. The framework is applied in the context of each client's investment policy and constraints.

Does GSIS use active or passive investments?

We may use both. In many public markets, we emphasize low-cost exchange-traded funds and other rules-based strategies. Active management may be considered where the opportunity set, manager skill, risk management, access, or market structure may justify the additional cost. The choice is made in the context of the portfolio, not as a blanket preference. All investments involve risk, and active management does not assure better performance than an index. Lower-cost implementation does not guarantee better net performance.

How does GSIS approach diversification?

We evaluate diversification across asset classes, regions, strategies, managers, risk factors, and liquidity profiles. Holding many investments does not necessarily create meaningful diversification if they respond to the same economic forces. We therefore consider how exposures may interact under normal and stressed conditions. Diversification and asset allocation may help manage risk, but they do not guarantee a profit or protect against loss in declining markets.

How does GSIS manage portfolio risk?

Risk management begins with the client's ability and willingness to accept loss, illiquidity, and uncertainty. We evaluate asset allocation ranges, concentration, equity sensitivity, interest-rate exposure, credit quality, currency, liquidity, drawdown behavior, and scenario outcomes. We also monitor whether the portfolio remains consistent with its policy. Risk cannot be eliminated, and quantitative measures depend on assumptions that may not hold during stressed markets.

How does GSIS rebalance portfolios?

Rebalancing decisions consider policy ranges, changes in expected risk and return, market movements, cash flows, liquidity, taxes, transaction costs, and client restrictions. In a discretionary relationship, we may implement rebalancing within the authority established by the governing documents. Rebalancing is intended to keep the portfolio aligned with its objectives, but it may generate taxes or costs and does not assure improved performance.

How does GSIS consider taxes when managing a portfolio?

We consider the effect of taxes on after-tax portfolio results. For taxable clients, we consider tax circumstances as part of the investment strategy, manager selection, time horizon, liquidity needs, and risk tolerance. Where it fits the client’s situation, that may include which accounts hold which investments, how often positions are traded, whether existing holdings carry large unrealized gains, and when sales occur. Taxes are one input among several. A decision that lowers a tax bill can still be wrong for the portfolio if it adds concentration, moves the client outside their risk limits, or gives up expected return. We coordinate with a client’s tax professional on decisions that depend on the client’s full tax picture. Tax management does not assure a better after-tax result, and tax rules and client circumstances change.

Private markets and less liquid investments

Does GSIS invest in private markets?

Yes. We include investments across private equity, venture capital, private real estate, private credit and private infrastructure when appropriate for a client. Our execution includes interval, drawdown and tender offer funds. The decision depends on the intended portfolio role, eligibility, liquidity needs, time horizon, tax circumstances, existing commitments, fees, and ability to tolerate delayed or limited redemptions. Private investments are not suitable for every client and may involve substantial risk, valuation uncertainty, and long holding periods.

How can private markets fit within a high-net-worth portfolio?

Private markets may complement public stocks and bonds by providing exposure to different companies, lending markets, assets, or return sources, but they do not automatically improve diversification, returns, or risk-adjusted performance. Their role should be evaluated within the total portfolio, not as a separate collection of funds. Before investing, a family should consider capital calls, expected distributions, taxes, fees, valuation practices, liquidity, and concentration. A private allocation should not compromise the family's ability to fund spending, taxes, emergencies, or other planned uses of capital.

How does GSIS evaluate private market managers?

The review includes the manager's team, ownership, strategy, sourcing, investment process, realized and unrealized results, portfolio construction, use of leverage, valuation practices, fees and expenses, alignment, service providers, compliance history, and key person provisions. We also consider how a proposed investment fits the client's existing portfolio and liquidity plan. No due diligence process can identify every risk or assure that an investment will meet its objective.

Are private investments liquid?

Many private investments are illiquid or provide only limited opportunities for redemption. Capital may be committed for years, distributions are uncertain, and a secondary sale may be unavailable or occur at a discount. Some semi-liquid funds offer periodic repurchase programs, but repurchases may be limited, suspended, or oversubscribed. Terms vary by investment and should be reviewed in the offering documents before investing.

How should private investment performance be evaluated?

Private market performance may be presented using internal rates of return, investment multiples, time-weighted returns, public market equivalents, and peer comparisons. Each measure answers a different question and has limitations. Results may include unrealized values estimated by a manager, and the timing of capital calls and distributions can materially affect reported returns. Comparisons should use consistent periods, cash-flow assumptions, fees, and valuation methods. Past performance does not predict future results.

Fees, custody, reporting, and client service

How is GSIS compensated?

Our advisory fee is individually negotiated based on the scope of the relationship, subject to a minimum annual fee of $25,000. The applicable rate is documented in the investment advisory agreement. Asset-based fees are calculated using month-end account values and are generally deducted monthly in arrears with the client's written authorization. Clients also bear fees and expenses charged by investment funds, external managers, custodians, brokers, and other service providers. Prospective clients should review the current Form ADV and advisory agreement to understand how the fee contributes to the total program cost.

Does GSIS receive commissions for selling investment products?

No. GSIS does not accept or receive commission for selling securities or other investment products, including mutual fund sales charges or service fees. When we use mutual funds, interval funds, or tender offer funds, we select institutional (I) share classes, which do not carry sales loads or 12b-1 fees, and we do not receive revenue sharing or other payments from fund sponsors. Our only source of revenue is the advisory fees our clients pay us directly.

Why doesn’t GSIS receive commissions, and what does it mean that we are not dually registered?

We are registered with the SEC as an investment adviser only. Neither we nor our representatives are registered with a broker-dealer or as representatives of one, so we are not a dually registered firm. Selling securities for commissions generally requires broker-dealer registration, which means we cannot accept commissions, and we do not accept compensation for selling securities or other investment products. Our only source of revenue is the advisory fees our clients pay us directly. View FINRA’s list of broker dealers: https://www.finra.org/about/entities-we-regulate/broker-dealer-firms-we-regulate .

Dually registered firms can act as an adviser in some accounts and as a broker-dealer in others, and they may be paid commissions for the second role. That can be a reasonable way to serve some investors, but it raises conflicts of interest and calls for clear disclosure. The two roles are also governed by different standards of conduct.

Where are client assets held?

Client assets are maintained at an independent qualified custodian for brokerage and custody services. Trading in clients accounts generally takes place at the custodian. Clients have full access and transparency to trade confirmations, positions and statements from the custodian. Clients should compare them with reports received from us and promptly investigate any discrepancy.

What reporting do clients receive?

Clients receiving ongoing advisory services receive monthly custodial reports showing account holdings, asset values, and advisory-fee calculations. We also provide a separate written report at least quarterly that includes additional information, including performance and aggregated longer-term cash-flow reconciliation. Reporting may also address asset allocation, benchmarks, policy considerations, and material portfolio changes. Custodian statements remain the official record of account assets and transactions. Clients also have access to a GSIS client portal, which they can use from a computer or a mobile device.

How often does GSIS meet with clients?

The meeting and communication schedule is established around the client's needs, governance calendar, and complexity. We review all ongoing advisory accounts with reference to the client's investment policy and risk tolerance. Additional reviews may be triggered by material market, economic, or political events or by changes in a client's circumstances.

Does GSIS work with a client's attorney, CPA, trustee, or other advisers?

Yes. We coordinate investment-related matters with attorneys, accountants, trustees, benefits professionals, and other advisers selected by the client. Clients should rely on appropriately qualified professionals for legal, tax, or accounting advice .

Can a client keep some investments outside the GSIS relationship?

Yes. The structure depends on the engagement, custody arrangements, reporting capabilities, and the effect of outside assets on the client's overall allocation and risk. Legacy private investments, employer plans, concentrated holdings, or assets managed elsewhere may remain outside our discretion but are integrated into the overall asset allocation and investment strategy. Clients should provide complete and current information so those assets can be considered where appropriate.

Selecting an OCIO or Financial adviser and getting started

What should a family or institution ask when evaluating an OCIO?

Below is a list of important questions:

How is the firm registered, and who owns it?

• Independent RIA, broker-dealer, or dually registered? Who owns the firm?

How is the firm paid, and what are its incentives?

• Full fee transparency, including total fees across the portfolio and ancillary services
• Whether it offers proprietary products as an additional source of revenue

Who will work on our relationship, and what discretion will they have?

• The people assigned to the relationship and their experience
• The decisions the firm will make versus the decisions the client will retain

What is the firm’s investment approach?

• Investment philosophy, asset allocation and risk management
• Manager research, private market experience, and liquidity planning

How are assets held, reported, and protected?

• Custody and cybersecurity
• Reporting, including a sample report

How would the transition work, and how should we weigh performance?

• Transition planning
• References relevant to the mandate
• Recent performance should be considered in context and should not be the sole basis for selection

For a full list of Request for Proposal questions please email RFP@gsisus.com .

How does GSIS develop an investment strategy for a new client?

Our process begins with discovery. We seek to understand the client's objectives, legal and governance structure, time horizon, spending or distribution needs, liquidity, taxes, risk tolerance, existing holdings, private commitments, and decision makers. We then help develop investment policy, asset allocation, implementation recommendations, and a transition plan. The final scope and portfolio are documented through the applicable agreements and policy guidelines.

What happens to existing investments when a client hires GSIS?

We review existing holdings before making changes. The analysis may consider investment merit, unrealized gains and losses, liquidity restrictions, surrender or termination provisions, private fund commitments, account registration, cost basis, cash needs, and transition costs. Some assets may be retained, some may be sold, and others may be transitioned over time. Private investments often remain in place until they distribute or become eligible for transfer or redemption.

How long does an investment transition take?

Timing depends on account opening, custody, the number and type of accounts, transfer procedures, tax considerations, market conditions, and the liquidity of existing investments. Public securities may be transferred or traded relatively quickly, while private funds and restricted assets may require months or years to resolve. A transition plan should identify priorities, responsibilities, dependencies, and any assets that will remain outside the new mandate.

Can GSIS work with clients in different locations?

We are a national firm that serves clients across the country. Our headquarter office is in Scottsdale, Arizona, and our other offices are in North Carolina and Florida, and can communicate through in-person meetings, telephone, video meetings, secure portals, and other approved channels.

How can I learn whether GSIS is the right fit?

A useful first conversation focuses on the portfolio's purpose, current challenges, decision-making structure, liquidity, taxes, existing investments, and the level of responsibility the client wants to delegate. We can then explain our service model, investment approach, proposed team, expected reporting, fees, and next steps. Before engaging any adviser, review its current Form ADV, Form CRS, proposed agreement, and relevant conflicts, and consider whether its capabilities and working style fit your needs.

Important information

This page is provided for general educational and informational purposes only. It is not individualized investment, legal, tax, accounting, or regulatory advice, an offer to sell, or a solicitation to buy any security or investment product. Investing involves risk, including possible loss of principal. Diversification, asset allocation, and rebalancing do not assure a profit or protect against loss. Private investments may be speculative, illiquid, difficult to value, subject to long holding periods, and available only to eligible investors. Services, personnel, processes, fees, minimums, and investment availability may change and may differ by client. Any advisory relationship is governed by the applicable written agreement and investment policy. Registration with the SEC does not imply endorsement or a particular level of skill or training. Prospective clients should review our current Form ADV and Form CRS and consult their own professional advisers regarding their circumstances.