New research from Boston-based global analytics firm Cerulli Associates is reinforcing the benefits of outsourcing the chief investment officer function.
According to Cerulli, corporations are increasingly focused on de-risking their pensions, resulting in sponsors investing within a liability-driven investment framework. Cerulli believes OCIO providers with extensive expertise in tactical oversight, managing risks for growth, and hedging portions of an LDI portfolio will continue to find opportunities from under-resourced plan sponsors.
“Most corporations lack the time and resources to oversee investment management across an expanded investment lineup,” explained John Hsu, senior analyst at Cerulli Associates. “An outsourced chief investment officer (OCIO) model allows an institution to delegate some decision-making responsibilities.”
Greenwich Associates gave its own perspectives on OCIO in an earlier report.