Outsourced chief investment officers, or OCIOs, are increasingly in demand as financial institutions and asset owners seek specialized expertise to handle their investment portfolios. OCIO providers offer a range of services, from asset allocation advice to full discretionary portfolio management. As the OCIO industry grows, so does the need to hire talented investment professionals into these roles. This article explores the key aspects of OCIO jobs and hiring external CIO talent.
The rise of outsourced CIO services
The OCIO industry has expanded rapidly over the past decade, with assets under management by OCIO providers growing from under $50 billion in 2000 to over $2.7 trillion in 2021. This growth is driven by several factors: the increasing complexity of markets and portfolios requiring specialized skills, the fiduciary responsibilities of asset owners, and the desire to focus internal resources on core business operations rather than investment management.
Key responsibilities and required skills
OCIO jobs encompass a broad range of investment-related responsibilities, including developing investment policy statements, constructing multi-asset class portfolios, manager selection and due diligence, monitoring performance, and risk management reporting. Candidates must demonstrate deep investment expertise across a range of asset classes, excellent analytical and communication abilities, and the capacity to work closely with client executives and boards.
Sourcing and retaining top talent
To attract and retain top investment talent, OCIO firms must offer competitive compensation and benefits packages, resources to support professional development and research, as well as a collaborative culture that empowers teams. As the industry matures, career progression and leadership opportunities also play a key role.
The outsourced CIO industry provides specialized investment services to asset owners and will continue expanding. OCIO providers face increasing demand for experienced investment professionals who can deliver customized solutions to clients. By offering fulfilling work and advancement prospects, OCIO firms can effectively source and retain talented individuals in these critical roles.