Our latest Outsourced Chief Investment Officer (OCIO) report below features one-hundred-four firms managing industry assets of $3.27 trillion as of March 31, 2021, an increase of 15% over the prior six months.
By comparison, last year we reported 15.8% growth for the entire twelve-months ending September 30, 2020.
All things equity – public markets, private equity, venture capital — produced a year for the ages and our herd of OCIO providers kept pace with the bulls. Overall OCIO growth matched Alpha’s broad market index and slightly trailed Alpha’s moderate endowment and foundation diversified style index.
One-year Performance ending 3-31-21 |
|
Broad Market |
30.69 |
Endowment & Foundations |
35.77 |
Aggressive Asset Allocation |
46.34 |
Moderate Asset Allocation |
33.17 |
Conservative Asset Allocation |
7.71 |
MSCI ACWI |
55.31 |
S&P 500 |
56.35 |
Bloomberg Barclays US Aggregate |
0.71 |
60% MSCI ACWI / 40% Bloomberg Barclays US Agg |
31.12 |
The OCIO Story
Our friend Jon Hirtle, of Hirtle, Callaghan & Co, officially launched the OCIO service model in 1988 (with fellow Goldman Sachs vet Don Callaghan) and it’s been full steam ahead ever since.
(See Jon Hirtle’s iconoclastic guest commentary below –– and his full article OCIO My Foot! here. We welcome all points of view)
The core idea was to offer a diversified and full-discretion money management function to family offices and institutions who could no longer effectively or affordably manage the money in-house.
OCIO firms offer the proven performance of the best endowment and foundation investment managers at a reasonable price. And they can replicate the entire investment office with the process and structure to cope with the complexity of modern portfolios and mounting operational and regulatory burdens.
We’ve been charting the growth of the OCIO industry for well over a decade in our annual OCIO reports and the heirs of Hirtle, big and small, seem mostly to have flourished.
Today the industry is bifurcated, highly diverse, intensely competitive, and the nine largest providers on our OCIO list – Aon, Blackrock, Goldman Sachs, Mercer, Northern Trust, Russell, SEI, SSgA, and Willis Towers Watson – with their size and resources dominate the largest segment, corporate pensions.
These nine firms control nearly two trillion in OCIO assets or 60% of the outsourced segment, but from what we hear and see, the market for discretionary asset management services among foundations and family offices shows no sign of slowing.
Company |
% Change in AUM |
Discretionary OCIO AUM as of 3-31-21 |
Mercer (Marsh & McLennan) |
23.90% |
$379bn |
Russell Investments |
14.78% |
$269bn |
BlackRock |
7.89% |
$246bn |
Goldman Sachs |
23.63% |
$208bn |
SEI Institutional |
14.75% |
$208bn |
AON Hewitt |
25.02% |
$203bn |
State Street Global Advisors |
24.45% |
$181bn |
Willis Towers Watson |
13.34% |
$168bn |
Northern Trust |
15.22% |
$102bn |
9 firms, 60% of OCIO AUM |
60.05% |
$1,964bn |
Total OCIO AUM |
|
$3,274bn |
We publish this semi-annual OCIO report in our newsletter and on our website for both institutions and high-net-worth families who are considering an OCIO provider and would like a convenient way to review and reach firms.
Go ahead and call a few if you’re in the market for money-management help. They will be happy to hear from you.
Guest Opinion: Jon Hirtle
When I am asked what an OCIO does, my answer is simple, “The same thing an internal CIO does.” So, functionally, “CIO” and “OCIO” are interchangeable and, structurally, they should be identical.
–Jon Hirtle
Outsourced Chief Investment Officer (OCIO) is one of the fastest growing areas in investment management.
Charles Skorina, publisher of The Skorina Letter and acknowledged expert on tracking growth within the OCIO marketplace, recently published a list of 104 firms who claim to be delivering OCIO services.
When one considers what is required to deliver the benefits of OCIO, that is an independent investment office and your own Chief Investment Officer capability, the vast majority of those firms do not measure up.
A real OCIO search begins by eliminating pretenders from consideration.
▪ Traditional investment governance has been challenged by a tipping point of complexity and noise brought on by globalization and investment product innovation.
Consequently, Wall Street’s buyer-beware social contract is long past its expiration date when it comes to serious investors with serious responsibilities.
▪ The advantages of a sophisticated, conflict-free independent investment office with multibillion-dollar access are undeniable.
Decades ago, in order to deal with that tipping point of complexity and noise, sophisticated, multibillion-dollar investors like the R.K. Mellon Foundation and Yale University developed their own, independent investment offices led by a carefully selected, highly qualified C-suite executive called a Chief Investment Officer.
▪ Outsourced Chief Investment Officer (OCIO) is an important, cost-effective innovation.
When executed well, OCIO can deliver the advantages of a sophisticated, conflict-free, multibillion-dollar, independent investment office and transform Wall Street’s archaic buyer-beware social contract into one of trust, collaboration, and reliable success.
▪ Confusion created by widespread misuse of the term “OCIO” threatens to derail its transformative power.
Growth in OCIO has attracted banks, traditional investment-product firms, consultants, and start-ups who claim they too can provide OCIO services, despite structural conflicts of interest and cultural mismatches that disqualify them.
▪ Three requirements eliminate 75% of the firms on Skorina’s list leaving approximately 25 true OCIO firms for in-depth consideration.
When selecting an OCIO (or building an independent, internal investment office) wise investors will require a conflict-free structure, capability that is unconstrained by purchasing power and a point-accountable, investment-management culture.
As more and more thoughtful investors recognize the power and promise of OCIO, it’s time to review its three primary requirements.
- A Conflict-Free Structure
OCIO requires a structure that is conflict free and truly open architecture with no products or hidden corporate agendas to confound decision making.
- Purchasing Power
OCIO requires sufficient purchasing power to pay for the talent and support to fully exploit global complexity, noise, and opportunity.
- An Investment Management Culture
OCIO requires a point-accountable, investment management culture.
Those three essentials eliminate all banks, product firms, small firms, and consultants: 75% of the Skorina list.
–Jon Hirtle
For the full article, see HC Opinion: OCIO My Foot!
Download this newsletter as PDF
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OCIO Company Guide 2021
|
Outsource Chief Investment Officer (OCIO) Company Guide 2021 Charles Skorina & Company https://www.charlesskorina.com skorina@charlesskorina.com Office: 520-529-5677 (AUM as of March 31, 2021 unless otherwise noted) ——————————————————————————– Abbot Downing (Wells Fargo), Minneapolis, MN $41.5bn Discretionary assets $46.6bn total Douglas W. Evans, Head of Portfolio Managers douglas.evans@abbotdowning.com (415) 222-1490 ————————————————————
$12.1bn Discretionary assets Chris Bittman, Partner (303) 813-7910 ————————————————————
$64.9bn Discretionary assets $102.2.bn total Alan D. Biller, Chairman John Skjervem, CEO (650) 328-7283 ————————————————————
$4.33bn Discretionary assets $4.9bn total Todd D. Green, Principal, Business Development & Client Service (585) 749-0357 ————————————————————
$7bn Discretionary assets $34.8bn advisory Michael A. Rosen, CIO & Managing Partner Chaunice A. Peebles, Director chaunice@angelesinvestments.com (310) 393-6300 ————————————————————
$203.4bn Discretionary assets $3.1 trillion advisory Ed Bardowski, CSCP, Partner, Sales Leader & Registered Principal (484) 941-1409 ————————————————————
$1.7bn Discretionary & non-discretionary assets Susan Webb, Founder, President, CIO Oscar Gil, Founder, CEO Drianne Benner, Managing Director Sales (212) 895-3012 ————————————————————
$1.26bn Discretionary assets $3.5bn total Ryland Moore, Managing Principal, Business Development (971) 263-7860 dir (503) 239-0475 x147 ————————————————————
$1.534bn Discretionary assets $1.722bn total Peter M. Rup, Founder & CIO Ron Zdrojeski, Director Business Development (212) 838-9000 ————————————————————
$6.03bn Discretionary assets $69.19bn advisory Michael W. Johnson, Area President Institutional Investment & Fiduciary Services (202) 898-2270 ————————————————————
$2.1bn Discretionary assets Alfred J. Morrison, Managing Principal morrison@assetstrategyconsultants.com (410) 528-8282 x1043 Andrew W. Conner, CIO conner@assetstrategyconsultants.com (410) 528-8282 x1041 ————————————————————
$9.1bn Discretionary assets $17.7bn total Jayson DeAngelis, Partner jdeangelis@ballentinepartners.com (781) 314-1316 ————————————————————
$35.3bn institutional Discretionary assets $324.8 total Discretionary assets Bernard Reidy, Managing Director, National Endowment and Foundations Executive (203) 571-5341 ————————————————————
$18.5bn Discretionary assets $20.8bn total Todd Whitenack, Co-Managing Partner (212) 313-9875 ————————————————————
$15.8bn OCIO Discretionary assets $19.8bn total Felix Lin, Partner, President Institutional Consulting Services Mike Breller, Managing Director, Sr. Consultant (949) 718-1602 (949) 718-1600 Newport Beach main ————————————————————
$246bn global Discretionary assets Jeff Saef, Managing Director, Head Americas & Client Portfolio Solutions (609) 282-8950 ————————————————————
$475mm Discretionary assets $500mm total Peter H. Bowles, Managing Director (804) 673-7404 ————————————————————
$16.6bn Discretionary assets $34bn total Jamie W. Lewin, Head of Investor Solutions (212) 922-4524 Andrew D. Wozniak, Head of Client Consulting & Investor Solutions (412) 236-7940 ————————————————————
$7.6bn OCIO Discretionary assets $59bn total Discretionary assets AUM Brigid Peterson, Head Endowment & Foundations (410) 537-5379 ————————————————————
$47.7bn Total discretionary assets Tom Davis, Managing Director (212) 493-8699 ————————————————————
$28bn Discretionary assets $2.5trillion advisory James A. Callahan, President (415) 974-5060 ————————————————————
$47.3bn Discretionary assets $529bn advisory Deirdre Nectow, Managing Director dnectow@cambridgeassociates.com (617) 457-1781 ————————————————————
$3.1bn Discretionary assets $24.8bn advisory Robinson (Bob) Cluck, Chairman bcluck@canterburyconsulting.com (949) 718-2229 Poorvi Parekh, Director OCIO pparekh@canterburyconsulting.com (949) 718-2224 ————————————————————
$1.7bn Discretionary assets $14bn advisory Elliott Wislar, CEO Gregg Sibert, Chief Marketing Officer (212) 683-6686 ————————————————————
$12.9bn Discretionary OCIO assets $26.5bn total AUM Mark Anson, President, CEO & CIO Tim Yates, President, CEO & OCIO (203) 563-5238 ————————————————————
$1.3bn Discretionary assets Derek Tubbs, VP Institutional Development (404) 870-0700 ————————————————————
(Focus Financial), Charlottesville, VA $8.64bn Discretionary assets $10.04bn total David Russell, Sr. Managing Director Christopher Laing, Sr. Managing Director (434) 293-7759 ————————————————————
$1.3bn Discretionary assets $36bn advisory Charlie Georgalas, Managing Director (212) 218-4900 ————————————————————
$1.25bn Discretionary assets $20.1bn advisory Thomas C. Woolwine, Vice Chairman, (913) 384-4994 ————————————————————
$14.93bn Discretionary assets (9-30-20) $6.74bn advisory Brett Lane, Head of Institutional Advisory Services (212) 454-0816 ————————————————————
$1.5bn Discretionary assets Matthew W. Wright, President & CIO (615) 490-6007 ————————————————————
$2.2bn Discretionary assets Nina F. Scherago, Co-Founder and Managing Partner n.scherago@edgehillendowment.com Jason Raiti, Partner Christin Sandweiss, Director Client Service c.sandweiss@edgehillendowment.com (203) 654-3553 ————————————————————
$1.5bn Discretionary assets $82.7bn advisory Andrew Schwark, Director OCIO Consulting andy.schwark@ellwoodassociates.com (312) 782-5432 ————————————————————
$7.5bn discretion $14bn advisory Brendan Corcoran, Senior Vice President (617) 233-0428 ————————————————————
$8.7bn Discretionary assets $64bn advisory Rebecca (Becky) S. Wood, President & CEO Devinne C. Kelly, Sr. Client Development Associate (513) 827-3204 ————————————————————
$35bn Discretionary assets (9-30-20) $1.03trillion global Jim Zadrozny, SVP Co-Head of Institutional Sales (401) 292-4760 (401) 209-0523 cell ————————————————————
$7.2bn Discretionary assets $19bn total Rick Tyson, Vice President & Investment Officer tyson@fiduciary-trust.com (617) 292-6799 ————————————————————
$8.6bn OCIO advisory solutions (12-31-20) $32bn total Ronald Sanchez, CIO Kate Huntington, Head of Advisory Solutions Group kate.huntington@fiduciarytrust.com (877) 384-1111 ————————————————————
$1.2bn Discretionary assets $2.1bn total Preston McSwain, Managing Partner (617) 602-1901 ————————————————————
$10.7bn Discretionary assets $215.4bn advisory Robert (Bob) DiMeo, CEO Jon Fellows, Partner & Chairman Matt Porter, Partner & Vice-chairman Fiduciary Investment Advisors (312) 853-1000 ————————————————————
$3.7bn Discretionary assets $4.1 Billion Total assets Chris McVey, Director of Business Development (781) 591-8265 ————————————————————
$6.03bn Discretionary assets $69.19bn advisory Michael Johnson, President Phil Fabrizio, Area Director (202) 898-2270 ————————————————————
$6.3bn Discretionary assets $7.6bn advisory (12-31-20) Charles Gerber, President Matthew Kinnear, Client Development (901) 526-9750 ————————————————————
$10.1bn tax-exempt OCIO $41.6bn total Gordon Fowler, Jr., President & CEO (215) 419-6640 ————————————————————
$11.7bn Discretionary assets Stephanie Lynch, Partner (704) 333-8282 ————————————————————
Scottsdale, AZ $1.1bn Discretionary assets Don Callaghan, Managing Partner (480) 935-2134 ————————————————————
$207.7bn Discretionary assets Gregory Calnon, Managing Director (212) 855-0124 ————————————————————
$15.2bn Discretionary assets $43.5bn total Sarah Stein, Managing Partner (415) 277-2634 Sarah Butler, Business Development Manager (415) 217-2449 ————————————————————
(RIA owned by Regions Bank) $10.5bn Discretionary assets $31.2bn total Trey Echols, CEO Paige Daniel, Managing Director (205) 939-8308 ————————————————————
$17.8bn Discretionary assets Erica Evans, Head Client Engagement (610) 943-4100 ————————————————————
$380mm total Robert M. Holt, Jr., Managing Partner (817) 877-1430 ————————————————————
$564.98mm Discretionary assets (12-31-20) $4.15bn advisory
(424) 270-8900 ————————————————————
$17bn Discretionary assets Bruce Miller, CEO Puja Seam, COO (434) 220-0280 ————————————————————
$27.5bn Discretionary assets Cori Duncan, CEO & Managing Partner (650) 494-4831 ————————————————————
New York, NY $68bn OCIO Discretionary assets $2.8trillion total Monica Issar, Global Head Multi-Asset & Portfolio Solutions (212) 464-2852 ————————————————————
$990mm Discretionary assets (12-31-20) $101bn advisory (6-1-21) Lauren Moore, VP Marketing Ed Johnson, President & CEO (770) 644-0100 ————————————————————
(Bought by iM Global Partners, close 2nd Q 2021) $2.2bn Discretionary assets $6.3 bn total (iM Global Partner) Bill Thompson, Director, Endowments & Foundations Group, Senior Advisor (415) 464-5808 ————————————————————
$1.8bn Institutional Discretionary assets $3.0bn total Austin Brockenbrough III, Chairman Christopher Dion, Managing Director & CIO (804) 287-2744 ————————————————————
$18bn Discretionary assets Joseph Magher, Managing Director (650) 926-1339 ————————————————————
$1.9bn AUM Joel R. Mangham, Founder Co-CIO Edward W. Karppi, Partner, Co-CIO Joel Streeter, VP JoelP.Streeter@manghamassociates.com (434) 973-2223 ————————————————————
$12.2bn Discretionary assets $284.9bn advisory Brian Wrubel, President & CEO bwrubel@marquetteassociates.com Patrick McDowell, SVP, OCIO Services pmcdowell@marquetteassociates.com (312) 527-5500 ————————————————————
$20.6bn Discretionary assets $1.6 trillion advisory Lisa Rubin, Director Marketing (760) 795-3450 ————————————————————
$379bn delegated global $15.5trillion advisory (12-31-20) Samantha Davidson, US Investment Solutions Leader (617) 747-9230 ————————————————————
Conshohocken, PA Josh Gross, CEO $7.5bn Discretionary assets $8.5bn total (610) 941-7714 ————————————————————
West Conshohocken, PA $1.8bn Discretionary assets (12-31-20) $4.0bn total Timothy P. Letter, Managing Director, business development (610) 834-9820 x136 ————————————————————
Chapel Hill, NC $2bn Discretionary assets Mark Yusko, CEO & CIO (919) 933-4004 ————————————————————
Graystone Consulting, New York, NY $44.8bn OCIO Discretionary assets General OCIO Inquiries mscustomsolutions@morganstanley.com (212) 296-6651 Tom Williams, Managing Director, Head of Institutional Portfolio Solutions, Head Custom OCIO Solutions tom.williams@morganstanley.com (212) 296-6960 Robert Mandel, Managing Director, Head of Graystone Business & Team Development robert.j.mandel@morganstanley.com (914) 225-5420 ————————————————————
Company “MEMCO,” Edmond, OK $1.2bn Discretionary assets Ryan S. Tidwell, CEO & CIO (405) 385-3146 ————————————————————
$56.1bn Discretionary assets $1.4trillion total Steve F. Charlton, Director Consulting Services (617) 374-1300 ————————————————————
$2.7bn Discretionary assets Andrew Vogelstein, Chairman Sarah Withers, Associate Director (646) 292-1272 ————————————————————
$102.2bn OCIO Discretionary assets $50.2bn advisory Lyndsay Ferencak, Director (312) 444-3297 Darius Gill, National Practice Director (312) 444-7153 ————————————————————
$3.47bn total Larry Hood, Founder & CEO Kevin O’Connor, Partner, Senior Retirement Program Advisor koconnor@pacific-portfolio.com (206) 623-6641 phone (253) 651-4905 cell ————————————————————
$40.6bn total Paul Dimitruk, Co-Founder and Senior Partner paul.dimitruk@partners-cap.com (617) 292-2575 Leslie Ahlstrand, Principal leslie.ahlstrand@partners-cap.com (617) 778-7046 ————————————————————
$15.7bn total Discretionary assets (12-31-20) Matthew P. Mintzer, EVP Sales & Marketing (914) 821-9563 ————————————————————
$4.1bn Discretionary assets John Regan, Founding Partner Alex Goldfarb, Partner (212) 993-7447 ————————————————————
$1.4bn Discretionary assets Mimi Drake, Co-CEO Bill Curran, Portfolio Manager (610) 940-5331 ————————————————————
$17.2bn Discretionary assets $23.4bn total John Spagnola, Managing Director Jim Link, Managing Director (215) 557-6700 ————————————————————
$63.42bn Discretionary assets Chris McGoldrick, Managing Director OCIO & Retirement Solutions (215) 585-1244 ————————————————————
$3.2bn Discretionary assets $59bn advisory William F. McCarron, President (603) 433-1143 ————————————————————
$46.7bn Discretionary assets
(404) 979-5418 ————————————————————
$200mm Discretionary assets Christopher A. Reynolds, Director Institutional Sales creynolds@riskbridgeadvisors.com (770) 299-3832 ————————————————————
$269.4bn Discretionary assets Rob Cittadini, Managing Director, Institutional Sales rcittadini@russellinvestments.com (206) 505-2876 (o) (206) 427-5589 (c) ————————————————————
$28bn Discretionary assets $44.6bn total Kam Chang, Principal (212) 980-7365 ————————————————————
$10.3bn Discretionary assets TJ Kistner, VP, Head of Discretionary Portfolio Management & Solutions (312) 612-8493 ————————————————————
$207.7bn Discretionary assets Michael Cagnina, SVP, Managing Director (610) 676-1496 ————————————————————
$724mm Discretionary assets $7.5bn total Ashlee Moehring, Consultant, Principal ashleemoehring@sellwoodconsulting.com (503) 596-2880 ————————————————————
$6.2bn total
ramlee@sevenbridgesadvisors.com (212) 490-6320 ————————————————————
$21.9bn Discretionary assets $29bn total Chris Long, Managing Director (212) 649-0697 ————————————————————
$5.7bn Discretionary assets Tory Sprehe, Director of Investor Relations (804) 289-6010 ————————————————————
$181.2bn Discretionary assets Gary Sems, VP, Global Fiduciary Solutions (203) 326-4255 ————————————————————
$29.5bn Discretionary assets $30.2bn total AUM Nikki Kraus, Managing Director Client Development (703) 243-4433 ————————————————————
$7.4bn Discretionary assets Kane Brenan, CEO Rob Zion, COO Michael Murray, Managing Director (312) 882-0331 ————————————————————
$16.5bn Discretionary assets Elizabeth Cabell Jennings, Managing Director Regional Practice Leader / Truist Foundations and Endowments Specialty Practice Elizabeth.C.Jennings@Truist.com (404) 813-1538 office (804) 314-5269 Mobile ————————————————————
$3.6bn total Casey D. Whalen, CEO & CIO Ilka Gregory, Director Client Relations (212) 488-5485 ————————————————————
$16.1bn OCIO Discretionary assets (9-30-20) Andrea Fisher, Head Specialist, Americas (212) 882-5147 Mohammad Ahmad, Head, Business Development 41 79 629 48 29 Calvin Kim, Director Investment Solutions Specialist Asia Pacific (ex. Japan/Australia) ————————————————————
$65.8bn Discretionary assets Christopher Philips, Head Institutional Advisory Services christopher_philips@vanguard.com (610) 503-1089 ————————————————————
$150mm Discretionary assets Ric Dillon, CEO (614) 653-8352 ————————————————————
$2.2bn Discretionary assets Wesley Carroccio, Managing Director Patrick Decker, Managing Director (336) 934-4101 ————————————————————
$5.3bn Discretionary assets $580.4bn advisory Shelly J. Heier, President & Senior consultant (206) 622-3700 ————————————————————
$1bn total Susan K. Lucas, COO (312) 259-8128 ————————————————————
$5bn Discretionary assets
(847) 866-4307 ————————————————————
$167.74bn Discretionary assets Kemp Ross, Global Head of Delegated kemp.ross@willistowerswatson.com (312) 525-2436 Clint Cary, Head, Delegated Investment Services, Americas clint.cary@willistowerswatson.com (312) 525-2406 Pieter Steyn, EMEA Head Delegated Investment Services pieter.steyn@willistowerswatson.com 44 (0) 207 170 2714 ————————————————————
$20.4bn Discretionary OCIO assets $1.3trillion advisory Walid Shinnawi, SVP, Head Institutional Business Development (415) 341-6008 ————————————————————
$330mm Discretionary assets David Wertentheil, Partner (212) 558-9017 ———————————————————— 104 Firms – Total AUM – $3.274 Trillion |
Note: We assume OCIO firms manage predominantly institutional assets (although many also shepherd family assets), while RIAs manage mostly high net worth money.
However, many RIAs manage some endowment and foundation assets. If you do, call us and we would be happy to include you.
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The Skorina Letter
Each issue explores how the world’s most accomplished asset managers think and invest. Original content includes profiles and interviews with industry veterans and research on compensation and investment performance.
Our insights and commentary come from our clients – board members, CEOs, chief investment officers – and the global investment community within which we work as executive search professionals.
Institutional investors operate at the crossroads of capital, talent, and ideas, shepherding over seventy trillion dollars in global assets. It’s a constantly evolving spectacle and The Skorina Letter gives readers a ringside seat.
Prior issues can be found in “archives” on our website.
