OCIO
topic on 1 show · 15 statements across 11 episodes
15 statements about OCIO, every show
Serving multiple clients forces compromises on portfolio construction for scale
“When you're serving multiple clients, you have to make compromises on the portfolio because you can't underwrite 25 different great portfolios. You need economies of scale.”
Ripley: Most Original OCIO Firms Pivoted Models or Sold Out
“If you look at the original class of OCIOs that was created, most have either pivoted their model to something else, sold themselves, or both.”
Wealth managers are acquiring OCIOs for institutional diligence capabilities
“Wealth management as both a business and the way it's investing in private markets is institutionalizing itself. Those firms are acquiring OCIOs to Add capabilities that give them institutional quality diligence and processes to invest in private markets.”
Bank: Portfolio diversification died after 2015 as US large-caps dominated
“The second phase I like to characterize as the death of diversification in 2015 onwards, which is the more simplistic the portfolio, the better from a returns perspective. The more U.S. Large cap equities you owned, the better your portfolio did, and you reall…”
Bank: Outsourced investment offices face the highest trust bar in finance
“I always say anytime you're trying to be the investment office for an institution or a family, you have to clear the highest trust bar in asset management. For a family, it's their hard-earned legacy. For an institution, you're often engaging with a committee …”
Briner: A la carte funds left Morgan Creek exposed in 2008
“It's very tempting. And some firms have pulled that off. Well, I would say it is a material change in your mission to become a purveyor of asset class fund to funds versus an OCIO. And it's hard to do without a lot of people. Doing a lot of different things. W…”
Briner: Scaling an OCIO flips daily time to 80% client relations
“What changes is when you add many more clients and then all of a sudden your day goes from 80% investing, 20% clients to 20% investing, 80% clients. And now you're in the asset management business.”
Muthiah: OCIO fear of client turnover leads to under-risked portfolios
“How much portfolio vol can you take before clients start to head for the door? And I think that balance was very much at the forefront. What is the appropriate amount? It can play out in taking less risk than you're supposed to be taking.”
Sommers: The OCIO Trend Has Concentrated Asset Management Distribution
“The distribution part of the business has become much more concentrated. The OCIO trend, the growth in plan sizes, all that has led to larger asset amounts per relationship.”
Dowling: Billion-dollar institutions are now outsourcing via OCIO
“What's changed is the size of the institution that are outsourcing. It's pretty incredible. You have, you know, billion dollar institutions that are outsourcing.”
Vanguard manages $50B in OCIO and nearly $200B in retail advice
“50 plus billion dollars in the OCIO space, close to two hundred billion dollars on the retail advice space.”
NEPC lets fund managers decide capacity allocations across clients
“We take that twenty million dollars, put it in a list, and we give that back to the manager, and they make the decision of how they want to allocate, so we're not making the choice of one client over another. We're not choosing OCIO over advisory. They all go …”
NEPC's bespoke OCIO business manages over $20 billion across 50 clients
“So we have what is now a large OCIO business with probably over twenty billion dollars, over 50 clients. Every portfolio that we build is bespoke.”
New OCIO fired 29 of 30 incumbent managers on Broadway plan
“When we went to an OCIO that had not had any Taft-Hartley experience before, the termination of existing managers and replacement was astonishing. I think there was maybe one manager out of 30 that they kept. Of the existing group.”