Outsourced CIO
An outsourced CIO (OCIO) is an external investment-management provider that takes on full discretionary responsibility for a family's portfolio under an agreed investment policy statement. The OCIO model gives families institutional-grade investment infrastructure without the cost of building it in-house.
OCIOs vary widely on independence, fee structure, asset-class expertise, and reporting transparency. Some are independent specialists; others are arms of larger banks or asset managers, with the conflicts of interest that implies. Selecting the right OCIO begins with a clear separation of advice from product.
OCIO is most appropriate for families whose portfolios warrant institutional discipline but whose operating scale does not justify a full in-house investment team — typically families with $50-300M of investable assets. Above that threshold, families increasingly choose to in-source.
Related terms
Deeper reading
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