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Cerulli Research
OCIO at an Inflection Point

Strong growth ahead, but institutions are demanding more

After a decade of robust growth, the OCIO industry is at an inflection point. Client satisfaction levels are high, but expectations have risen and replacement searches are on the rise. Cerulli’s survey, based on in-depth interviews with senior investment professionals from 45 institutions that utilize OCIOs, explores the benefits and challenges of working under an OCIO arrangement and maps out the future of an evolving industry.

Investor satisfaction levels are high across all aspects of their OCIO relationships.

Institutions’ satisfaction across all aspects of their OCIO relationships

This graph depicts the surveyed institutions’ satisfaction across all aspects of their OCIO relationships.

Source: Cerulli Associates, as of February 28, 2019. Analyst Note: No respondents indicated that they were “dissatisfied” or “very dissatisfied” across any of the aspects of their OCIO relationship.

Institutions that utilize an OCIO would recommend the OCIO model to their peers.
Of the institutions surveyed, 91% responded that they would recommend the OCIO model to a peer organization.

As the OCIO market evolves, investors are conducting replacement searches.

Fifty-three percent of institutions have conducted a replacement search. Of the institutions that have conducted a search, exactly half have replaced their OCIO.

This graph depicts the surveyed institutions’ institutions who have conducted a replacement search

Source: Cerulli Associates, as of February 28, 2019.

 


Looking ahead

As markets move into a more challenging stage, institutions are increasingly likely to need assistance achieving their return targets and meeting their organizational goals. Read the survey results to understand why many of your peers have chosen an OCIO model to help.

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