The OCIO trend continues to gain traction. In fact, total OCIO assets under management have grown to $1.43 trillion in March of 2017 from $599 billion seven years ago. OCIO assets could even reach $2.7 trillion by Q1 2022 according to the most optimistic growth forecasts by Cerulli Associates.
Key growth markets include nonprofits, corporate defined benefit plans and healthcare systems with many predicted OCIO opportunities on the horizon.
What's bringing continued OCIO growth?
Acceptance of this model continues to pick up steam. And with complex investment markets and resources stretched thin among investment committees, it makes sense to partner with a dedicated OCIO provider. Here's why:
- Investment teams often lack the expertise to cover all asset classes
- Organizations need better support for managing organizational risk
- Staff/committees strategically leverage OCIO experience, infrastructure & resources
- OCIO have the ability to integrate various assets into one cohesive strategy
Read the article: OCIO Assets On Pace to Double in 5 Years, Eclipsing $2.3T (PDF)
Information provided by SEI Investments Management Corporation (SIMC), a registered investment adviser and wholly owned subsidiary of SEI Investments Company.