Starting an OCIO Search? Ask This First

July 18, 2018

Your answer will form the basis of your governance structure

If you’re among the many institutional investors who are evaluating OCIO providers, you know there are a lot of options to consider. But there’s a very basic question that you should ask yourself first – and it is surprisingly often overlooked: “What do we want our OCIO to do?”

The answer to that simple question should be the foundation of your search – because finding the right fit is impossible if you don’t know what it is you want them to do. It’s the basis for good governance, because it allows you to clearly separate duties, while instituting proper checks and balances.

Defining your desired governance structure

The way you want to run your portfolio impacts how the strategic partners you ultimately select help you succeed in the long run. Before you look at the options out there, first clearly define what you want to do and what you want your provider to do. Once you set your desired governance structure, it’s easier to find the OCIO that best meets your goals.

So what might you want your OCIO to do?

There are a number of options, including:

  • Researching and selecting money managers
  • Jointly making changes to your investment policy with you
  • Setting asset allocations

Beyond denoting who is responsible and accountable for which activities, you'll also want to document the checks and balances you want to put in place (who is the decision-maker, and who does the validation, for example).

Paving the way to success

Our governance structure checklist helps make it easy for you to outline who will focus on what when it comes to managing your portfolio.

Download: Governance Structure Checklist (PDF)

There are many providers that offer investment management and OCIO. It’s important to find the strategic partner that best fits your desired governance structure. Taking a step back to truly define what you want to get out of the relationship lays the groundwork.

Let us walk you through our governance structure checklist and provide insights into the best delegation model for you. Schedule an introductory meeting

Legal Note

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