There is considerable confusion on exactly what OCIO services mean. Simply put, the primary difference in OCIO versus traditional consulting services is who owns final discretion for the selection of managers/funds and the execution of investment decisions.

According to the PGIM survey, the top objective for plan sponsors is very different than OCIO service provider goals. All Plan Sponsors considering the benefits of implementing this type of service should begin by identifying internal goals and priorities before conducting due diligence on potential partners. Below are a few important issues that Committee’s need to determine:

  • Internal alignment on the philosophy of offering active and passive investment options,
  • Does the Committee desire an open architecture structure,
  • How important is a partner with organizational depth,
  • Does the Committee have the internal skills to assess the quality of Manager Selection skills,
  • Is access to non-traditional investment options important to the Committee

Answering these questions is crucial in determining the type of services and potential consulting partners the Committee will want to analyze.

PLAN SPONSORS’ TOP REASONS FOR DECIDING TO USE AN OCIO

COMPARED TO

TOP REASONS FROM OCIO’S PERSEPECTIVE