Outsourcing CIO Services in 2024 – The Best Tips

The term OCIO (Outsourced Chief Investment Officer) has gained large traction in the investment industry. As banks, wealth management firms and investment consultants are offering OCIO services to nonprofit organizations and management firms.

We have made a quick guide with the best tips about choosing and hiring a good Outsourced CIO in 2024.

Does the OCIO service come with an investment philosophy?

Does the Outsourced CIO you are considering have an investment philosophy that is well-constructed, well-researched and time-tested? He should also have an investment process ready which should be easily explainable to your team of employees. The OCIO should prove himself as consistent over time and not chasing the latest trends.

Is the OCIO equipped with a team of experts prepared to serve your organization?

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Outsourced Chief Investment Officers that do not have a well-built team of people usually means a high chance of instability. These kinds of red flags should make you reconsider your choice of OCIO. It is important to find a service which offers an equal understanding as you and your coworkers of the challenges nonprofit organization have to constantly face. An OCIO should have the authority to handle a great deal of resources to help you through these challenges.

Is the OCIO transparent about his fees and services?

When you are considering a new OCIO service for your organization, the outsourcer should be transparent about his fees. Make sure there aren’t any hidden or complicated fees that your accountants will not be able to understand. If they do, then confront them about their demands and ask for an explanation. If they are trying to avoid to talk about this subject, then you should clearly avoid this outsourcing service. If you are unsure if Outsourcing CIO services are the right option for your organization then make sure to check out cioadvise.com to get a clear idea if you need these services.

Is the OCIO’s value equal to the services offered?

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While the investment management industry grows because of its competition, the value for these Outsourcing firms keeps rising. That is why it is important to know if the OCIO’s quality of services is accompanied by the investment process. You can’t risk such a large expense for outsourcing service without satisfactory results. An OCIO who understands and is ready to better your organization with things like governance, board education, a transition of leadership planning, donor development and many other efforts that will increase the value of your organization. While simultaneously bettering the lives of your employee and a better relationship between the Staff and Board Members.

OCIO’s history of helping other clients meet their planned goals

The firms offering their OCIO services should always show a history of their previous clients and how much of those clients have been satisfied with their missions and goals. Also, make sure to get a list of references from their previous clients and call up those same clients so they can confirm their experience with the OCIO firm you are considering. It is important that Outsourced CIOs show the ability to preserve positive communication with most of their previous collaborations.

These are the tips we think everyone should consider before deciding which OCIO is right for their organization.