In response to the changing investment environment that we’ve experienced in recent years, more and more foundations and endowments are turning to OCIOs for help in achieving a more diversified portfolio. According to a recent Cerulli survey, over 80% of OCIOs expect their endowment and foundation clients to increase their private equity allocation, with 67% expecting an increase in additional private investments.

Running a portfolio that’s currently heavily weighted in fixed income will present challenges in meeting your investment goals, but diversifying can be more complex and take more time than an institution can afford.

No matter how sophisticated a board or committee might be, an OCIO can react quicker when there are dislocations or opportunities in the market. “Since there’s more embedded volatility in the global markets, it still makes that challenge hard regardless of your committee structure or your governance process,” said Mike Cagnina, Vice President and Managing Director.

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Legal Note

Information provided by SEI Investments Management Corporation, a registered investment adviser and wholly owned subsidiary of SEI Investments Company (SEI). Neither SEI nor its subsidiaries is affiliated with any firms mentioned herein.

Investing involves risk including possible loss of principal. Diversification may not protect against market risk. There is no assurance that an investment strategy or risk management will be successful. Alternative investments are subject to a complete loss of capital and are only appropriate for parties who can bear that risk and the illiquid nature of such investments.