The outsourced chief investment officer (OCIO) model has emerged as a preferred solution for investors seeking to uphold the highest fiduciary standards amid various disruptive forces, including increasing capital market and regulatory complexity, as well as the accelerating pace of technological innovation. These challenges have stretched organizational expertise and resources, prompting many to seek external support.
The UBS Partnership Solutions team maintains that the rise of the OCIO, while necessary and timely, remains an imperfect solution and that a better fiduciary model is emerging that can preserve the value created by the outsourcing model while simultaneously overcoming its inherent shortcomings.
We offer a critique of the OCIO model and an alternative approach that flips the logic of the OCIO model on its head by emphasizing the importance and value of an ‘insourced’ approach. Read the key points below or download the full PDF.
