Outsourced chief investment officers got a huge boost from the pandemic, and that trend may be here to stay. According to a study by Cerulli Associates OCIO will grow at a rate of 5% annual for the next 5 years. In the year after the pandemic started the AlphaNasdaq OCIO index grew by 30.69%. OCIO's multi-asset class strategy combines everything from traditional stocks and bonds to sectors like real estate, and this multi asset strategy improves efficiency and tailor risk tolerances. In house investment teams have a harder time competing against OCIO’s in a low rate environment as they can’t seem to identify the returns and lack the connection OCIO’s have.
FINSUM: Specialty skill sets are the predominant employment trend in the 21st century and OCIO brings an expertise that will solidify their part of the financial industry in the years to come.