Why does Kaleido have an Outsourced Chief Investment Officers? Shaping the future through inspiration, education and growth in the never ending pursuit of excellence.

Institutions that cannot build an internal investment team because of asset size, are now adopting a new program – bringing in an experienced manager to oversee the asset allocation and investment program. These professional and highly skilled managers are known as “Outsourced Chief Investment Officers” (“OCIO”).

The OCIO assumes responsibility for all investment decisions based on the investment objectives of the client. But the OCIO difference is that the OCIO draws on their experience and knowledge of financial markets and asset managers to engage specialists to manage a subset of the client’s investment objectives.

Under the leadership and guidance of the OCIO, a team of specialists are assembled to collectively manage the client’s portfolio. This process allows for a more stable relationship between the OCIO and the client while increasing the level of expertise focused on realizing client’s investment objectives.

Because of the growing complexity of investments, it is unreasonable to assume that a CIO can be an expert in all investment products. But with an OCIO, multiple experts are engaged. The OCIO assumes direct supervising responsibility ensuring that the experts remain focused on their core expertise and do not deviate. With increased resources at their disposal, the OCIO can focus on the two most critical aspects of being an OCIO – risk management and the client relationship.

The OCIO phenomenon continues to grow. According to Family Wealth Alliance, approximately 1/3 of all Single-Family Home Offices now use an OCIO.

The benefits of having an OCIO are clearly recognized within the market place.

Source: OSC SN 45-715

Chief Investment Officer, Feb 2017

OCIO Responsibilities

  1. Investment Consultant
    • Customized Investment Policy Statement for Client
    • Portfolio Construction
    • Risk Management
    • Performance Reporting and Analysis
  2. Asset Manager
    • Separately Managed Accounts
    • Manager Selection
    • Proprietary Pooled Accounts
  3. Investment Planner
    • Tax Planning
    • Liquidity & Liability Planning