Outsourced Chief Investment Officer
Learn how your organization can benefit from an outsourced chief investment officer.
What is an Outsourced Chief Investment Officer?
An outsourced chief investment officer (OCIO) is a resource for organizations that can take on accountability and fiduciary responsibility for an asset pool, including strategic investment decisions. An OCIO also aims to manage liquidity trading costs and protect against drawdowns. Given the increased complexity of institutional investment programs, an OCIO can help investors access the expertise and scale they need to get the most out of their portfolios.
What are the Potential Benefits of Partnering with an Outsourced CIO?
Our delegated investment solutions allow fiduciaries to focus on strategic issues with the biggest impact on outcomes, including asset mix, investment structure and risk management.
Partnering with our team allows asset sponsors to focus more of their energy on their organizations by spending less time managing their investments.
Aggregating global delegated assets increases the collective buying power for investment and delivers potential cost savings to all delegated/OCIO clients.
Unbiased Advice and Implementation
Our open architecture and transparent fee model allow us to implement solutions we believe are in the best interest of our clients. We also leverage the expertise of investment managers who are buy-rated by Aon and ensure independence throughout our process.
Our ability to use discretion allows us to act quickly on asset allocation or investment manager changes. Clients don't need to worry about missing out on opportunistic investments or decision-making delays impacting investment performance.
Seek Better Outcomes
Delegated investment solutions provide easier access to asset classes (including alternatives) and preferred investment strategies, potentially improving risk-adjusted returns through increased diversification and custom risk management strategies.*
Why Choose a Consultant as an OCIO?
Our consultants harness Aon's full capabilities to help you make better decisions. Whether you select our team to provide fully or partially delegated investment solutions, we have the investment, fiduciary and operational resources to meet your needs.
Our OCIO model is a truly consultative approach. We'll partner with you to understand your business and investment goals and bring the right data, insights and expertise to the conversation as needed, including:
- Alternatives expertise
- Benefits benchmarking
- Cyber security
- Environment, social and governance consulting
- Fiduciary liability and directors’ and officers’ insurance
- Human capital consulting
- Intellectual property solutions
- Mergers and acquisitions services
- Operational due diligence
- Pooled employer plans
OCIO assets under full or partial delegation totaled $2.66 trillion, up 86.1% from 2017.
Source: Pensions & Investments, data as of March 31, 2022
What Should I Look for in an OCIO?
Scale and Infrastructure
Does the OCIO have the scale and infrastructure to support multiple competencies and investment specialties?
Access to Asset Classes
Can the OCIO access all asset classes and allocate assets across a range of risks?
Transparent Pricing Process
How transparent is the OCIO's pricing process?
History of Generating Returns
Does the OCIO have a history of generating returns and meeting client expectations?
*Diversification does not ensure a profit nor does it protect against loss of principal. Diversification among investment options and asset classes may help to reduce overall volatility. There is no guarantee that results or savings will be achieved if you should select Aon to provide services to you.
Investment advice and consulting services provided by Aon Investments USA Inc. Nothing herein should be construed as legal or investment advice. Please
consult with your independent professional for any such advice.