About two-thirds (64 per cent) of global institutional investors say new ideas and access to top asset managers are the key benefits of hiring an outsourced chief investment officer, according to a new survey by London-based CoreData Research.
The survey, which polled nearly 300 institutional investors in Asia, Australasia, Europe and North America, also found 55 per cent of respondents cited an OCIO’s ability to capitalize on a wide array of investment opportunities, including alternative asset classes, followed by 30 per cent that said the lower investment costs offered by OCIOs is the most important benefit.
The researchers were surprised by the small percentage (13 per cent) of institutional investors that believe external fiduciary managers’ work making investment portfolios more sustainable was the most important benefit of hiring an OCIO. “This may reflect a shift in investor priorities as institutions look to navigate the uncertain macroeconomic and geopolitical climate that has characterized 2022,” said Andrew Inwood, founder and principal of CoreData, in a press release.
Beyond investment benefits, respondents also shared their views on the most important governance benefits offered by OCIOs. About half (52 per cent) of institutional investors said they believe OCIOs’ dedicated expertise and specialism is a key governance benefit, 28 per cent of respondents cited time savings and 14 per cent cited clear and prompt reporting.