Defining the Outsourced Chief Investment Officer (OCIO)

By Austin Fitch, CFA®
and
Morgan Smith, CFA®

KEY TAKEAWAYS

• An OCIO is an investment professional or firm that can be leveraged by an organization or financial advisor to help develop and oversee their investment framework.
• Research indicates a growing number of financial advisors are leveraging OCIOs to help them better navigate the complex investment landscape while gaining access to a team of analysts with processes and software to develop customized solutions for their clients.
• OCIOs do not replace a financial advisor’s relationship with their clients and should instead enhance that relationship by improving the client’s confidence that their financial advisor has developed a unique financial plan tailored to their financial goals.