An outsourced CIO is a fiduciary who will design your investment portfolio with a legal and ethical accountability to protect your assets.
Responsibly managing assets can be challenging. An outsourced CIO is a trusted expert who will advise you objectively and help you navigate the many available investment options you may face.
An outsourced CIO’s job is to build a portfolio that meets your needs and goals, and reflects your risk tolerances. They will then select and monitor the investment managers who manage your portfolio.
Click here to visit our webpage “What Is an Outsourced Chief Investment Officer” for more information.
With an outsourced CIO, you will know where all of your assets are invested – and why. You will have an advocate with a fiduciary responsibility to protect your assets and “sit on your side of the table”.
The top five benefits of an outsourced CIO for high net worth families and foundations are as follows:
The primary benefit families and foundations have found from engaging an outsourced CIO is simply the peace of mind of knowing their assets are well taken care of (both now and for the future).
Families and affluent foundations need a customized, integrated asset management plan.
You should consider contacting an outsourced CIO when:
Investors face many complex challenges in the current asset management industry. When you need an objective expert at your side, you should engage an outsourced CIO.
Although different outsourced CIOs may have slightly varied processes, the core of how an outsourced CIO works involves: 1) a fiduciary responsibility, 2) a deep understanding of their client’s needs, and 3) an expertise in managing clients’ assets accordingly.
Here is how we work with our clients:
An outsourced CIO works with clients to provide prudent portfolio structuring and responsible preservation and growth of assets.
An outsourced CIO should always be transparent with their fees.
The costs associated with an outsourced CIO’s offering can be broken down into five main categories:
Investors should ask about each of these fees upfront, before signing any paperwork. This will ensure you aren’t subjected to hidden fees in the future.
Outsourced CIOs typically meet with their clients on a quarterly basis to review their portfolio and ensure it continues to meet the client’s (possibly changing) objectives. However, an outsourced CIO is always available if more meetings are required in the interim.
At the quarterly review, three crucial components should be addressed:
One of the most essential parts of an outsourced CIO’s role is investment stewardship. That means outsourced CIOs are concerned about the management of your assets beyond just building an investment portfolio. The successful management of family or foundation assets requires the expertise of several trusted advisors working on behalf of the family or foundation as an integrated and focused team.
For affluent families, we collaborate with your professional advisors to take into account tax and estate, and insurance and business succession planning, to name a few of the many moving parts that combine to create a worry-free life for our clients.
For foundations, we collaborate with the Foundation Board/Investment Committee and their financial auditors to create integrated and real sustainable solutions.
This collaboration not only avoids costly oversights, but strengthens an asset management strategy as a whole.
Unfortunately, the success of an investment portfolio is too often measured against the capital markets or an arbitrary benchmark. This is not how you should measure the success of your outsourced CIO! It is also not how they should be measuring their own success on your behalf.
Instead, you should measure the success of your outsourced CIO by whether your portfolio is meeting your funding obligations over time, while simultaneously respecting your tolerances for risk/portfolio volatility.
We call this “goals-based investing”. Remember, your investment portfolio is a simply a utility that exists to fund your goals and ensure funds are available for your future commitments and liabilities. This cannot be measured with relative benchmarks.