Nonprofit News: Foundations and Endowments Find Help for Navigating Complex OCIO Market

September 13, 2019

A crowded OCIO marketplace leads institutions to seek help with search processes

The OCIO industry continues to experience significant growth. Institutional investors now have an increasing number of choices to consider when it comes to portfolio asset management. And that means there are more providers to vet and details to evaluate. Each provider brings unique services, resources and technology to the table, and when you’re hiring an asset management provider, you want to make sure you’ve investigated your options to find the best fit for your organization. That means you’ll need the time and expertise to conduct a thorough review.

"Search consultants bring tremendous value to institutions and they are also forcing provider transparency, which we fully support." Frank Wilkinson, SEI

According to a recent article in Nonprofit News, Foundations and Endowments Find Help For Navigating Complex Outsourced CIO Market, many institutional investors look to search consultants to assist with navigating the search process. Our Managing Director, Frank Wilkinson explains: “…the prominence of Outsourced CIO search providers coincided with the growth of outsourced cios in the last six to seven years. Then there were probably in the realm of 50 or so companies listing themselves as OCIOs and that has jumped to more than 80 currently. In the end, it is up to the institutional client to explore their options, but that has become more and more difficult with so many variables and options available to them, so they have increasingly looked to outside help to assist in the processes."

Knowledge Center Video Q&A: The OCIO Search & Hiring Process How two higher education institutions moved from traditional consulting to OCIO

In addition to streamlining the search process, institutional investors seeking transparency around fees and conflicts of interest benefit from this process. The search becomes more formal and structured. Frank explains that "search consultants bring tremendous value to institutions and they are also forcing provider transparency, which we fully support. They are asking additional and thorough questions, they are streamlining the process and helping to compare plans the same way, especially when it comes to fees.”

Read the Article

Legal Note

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