One critical decision nonprofit boards continue to face is how best to implement an investment policy. They typically face three options for doing so.
-
Manage the portfolio with an internal staff directly allocating to managers;
-
Manage the portfolio with the aid of an investment consultant and investment committee to select managers; and
-
The option to outsource the portfolio management inclusive of manager selection to an investment advisor on a fully or a shared discretionary basis—otherwise known as the Outsourced Chief Investment Officer (OCIO) Model.
In this video guide to outsourced investing, Anita Hariton, Head of Client Engagement for Commonfund OCIO, discusses the growth of the outsourced-CIO industry and steps for institutions to take when implementing an outsourced CIO.