What is an OCIO?

Under an Outsourced Chief Investment Officer (“OCIO”) arrangement, a client delegates responsibility to make investment decisions on all or a portion of the client’s assets to an independent third-party. OCIO solutions typically includes both investment advisory and investment implementation services.

Why appoint an OCIO?  

Time saving

OCIO arrangements enable clients to delegate responsibility for the day-to-day management of their investments, freeing up their time to focus on other matters

Value for money

Clients can achieve more cost-effective solutions by taking advantage of an OCIO’s economies of scale

Precision and speed

OCIOs execute with precision and speed, making the most of investment opportunities as they arise

Transparency

OCIOs provide their clients with greater transparency over their investments, performance and risks, enabling them to better deliver their fiduciary responsibilities

Accountability

OCIOs challenge investment managers to provide greater accountability to their clients

SECOR’s OCIO offering

Our OCIO offering combines all of SECOR’s services into a single solution tailored for our clients’ unique circumstances. Everything from the risk-return objective to the investment decisions delegated is tailored to our clients’ individual needs. The outcome is an OCIO solution that fits around your needs rather than a “cookie-cutter” approach.

Clients can combine all or a subset of the following services to build a bespoke OCIO solution:


The SECOR delegation dial

With SECOR, an OCIO solution doesn’t have to be “all or nothing”.

The SECOR delegation dial represents the range of investment decisions that can be delegated. Delegation builds on our core Investment Advisory service which forms the foundation of our OCIO solution.  Clients are able to “dial-up” or “dial-down” the degree of delegation, allowing them to delegate some investment decisions (for example, manager selection) and retain others (for example, the strategic asset allocation).

Delegating in this way enables them to maximize the overall cost efficiency of their governance budget.

Investment Advisory Implementation Management Manager Selection LDI/ Equity Hedging Dynamic De-risking Strategic Asset Allocation Fully Delegated

Investment Advisory

The starting point of all our OCIO Solutions are our core Investment Advisory services, covering Strategic Asset Allocation and Manager Research advice and regular client reporting.

Implementation Management

As a starting point, clients may look to delegate basic implementation management such as portfolio rebalancing, currency hedging, transition management and synthetic market replication.

Manager Selection

Many clients may want to go a step further and ask us to leverage our manager research capabilities and be responsible for manager selection decisions.

LDI/ Equity Hedging

Making SECOR responsible for LDI management and Equity Hedging can often enhance the overall solution, making SECOR accountable for risk management decisions relative to the Actuarial model of the liability.

Dynamic De-risking

As the funding status improves, investment risk can be reduced. SECOR can agree to a de-risking framework with our clients in advance and be responsible for same-day de-risking where de-risking triggers are breached.

Strategic Asset Allocation

The final delegation step is Strategic Asset Allocation. Clients will still need to be involved in setting long-term objectives and defining risk tolerances, however the choice and sizing of asset classes can be delegated to SECOR.

Fully Delegated

Many clients want to leverage all of SECOR’s investment decision making capabilities under a fully delegated solution. Regardless of the degree of delegation, our solution is ultimately tailored to the individual requirements of each client.

Why choose SECOR as your OCIO partner?

In-house experience

Our senior management team’s in-house experience managing pension scheme assets at General Motors Asset Management gives us a unique perspective on how an OCIO relationship should be run.

Independence

As an independent firm focused on solutions, our OCIO offering does not require clients to invest in SECOR managed fund-of-funds products.

Fully bespoke service

We build customised OCIO solutions based on our clients’ chosen degree of delegation and their specific risk tolerances and constraints rather than one-size-fits all products.

Access to sophisticated solutions

We leverage our expertise and asset management relationships to provide our clients access to a breadth of sophisticated investment solutions. These include alternative asset classes, bespoke LDI and equity downside protection.

Ongoing monitoring and performance

As an advisor with security-level asset management capabilities, we can apply more scrutiny when monitoring our clients’ portfolios. Performance matters! We have a strong track record of improving funding outcomes for our clients.

Extension of staff service model

We seek to be an extension of our clients’ internal staff, meeting as frequently as desired and offering as much training as needed. With SECOR, clients can tailor client reporting to meet their unique governance structures and reporting needs, at whatever frequency they require.

Get in touch to learn more!