OCIO Model Gains Popularity with Institutional Investors

May 1, 2018

The benefits of an established OCIO program, from a leading OCIO provider

A shift to greater fiduciary accountability

As the trend of investment outsourcing becomes familiar to institutional investors, interest in the OCIO model grows. Cerulli Associates expects OCIO assets to grow 9.1% over 5 years*.

Why the shift? Increased market complexity and limited resources are causing many institutional investors to partner with an OCIO for trusted investment advice, improved risk management, faster decision making and delegation of tactical and strategic investment processes. Many OCIO providers bring the greater fiduciary accountability that many institutional investors are seeking.

Flexibility of services and implementation

An important feature for many institutional investors is a flexible, custom implementation where they maintain discretion over investment decisions. This is the most important aspect of an OCIO relationship - the ability to provide you with a program that meets your organizational preferences in ongoing governance and decision making. 

"Very few providers can match our overall client base and tenure as an OCIO." -- Paul Klauder, EVP, SEI Institutional Group

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And while it might seem like a new trend, not everyone is a fresh convert to the OCIO model. In fact, many asset owners who previously employed a different OCIO firm are in the process of reevaluating providers. FundFire recently uncovered an uptick in search activity among institutional investors who already work with an OCIO provider.

OCIO model veterans

We take pride in our established OCIO program.  In fact, over the past two years (as of 6/30/19), we added $11 billion in new OCIO assets and more than 60 new clients.

And they stay with us: 200+ clients have been with us for 10+ years. (as of 6/30/19)

63 new OCIO clients over the past 2 years

Paul Klauder, executive vice president of our Institutional Group explains what contributes to our continued growth:

"The ongoing growth of our institutional business is a testament to the infrastructure, resources and expertise we've built as an established leader in providing OCIO services. Very few providers can match our overall client base and  tenure as an OCIO. We're proud of our position as one of the largest companies in this space." 

Awards and Recognition

OCIO Awards

Top OCIO Provider at the Fund Intelligence 2017 and Fund Map 2018 Institutional Asset Management Awards as of November 2018. *Pensions & Investments, July, 2018. SEI ranked as a largest outsourcer based on worldwide institutional outsourced assets under management.

Legal Note

*Cerulli Associates: The Cerulli Report: U.S. Outsourced CIO Function 2016: Opportunities for Providers to Support Institutions Across Client Segments – Exhibit 1.08

Information provided by SEI Investments Management Corporation (SIMC), a registered investment adviser and wholly owned subsidiary of SEI Investments Company.

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