Best Practices for Your OCIO Search

Best Practices for Your OCIO Search

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For generations, successful endowments, foundations, and non-profits used in-house chief investment officers (CIOs) to direct their investment programs. But in today’s market, this approach has become challenged by the complexity of available asset solutions and limitations of resources. The Outsourced Chief Investment Officer (“OCIO”) model has become a way of life to many endowments and foundations globally, and many boards have found that outsourcing the CIO role provides them with far more flexibility and a higher level of skill at a lower cost. We have outlined the best practices for conducting an OCIO search.

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What’s Your Fee Policy?

What’s Your Fee Policy?

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According to the Callan Institute, an employee benefits research and investment consultancy group, the issue of high concern for defined contribution plan sponsors is that of retirement plan fees. Specifically noted in Callan’s 2019 Defined Contribution Trends Survey, plan sponsors have identified for the third year in a row that improvements in their fiduciary standing comes from a robust and thorough review of retirement plan fees.

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The Difference Between Investment Brokers and Retirement Plan Consultants

The Difference Between Investment Brokers and Retirement Plan Consultants

Posted on by Editorial Team2 Comments

Updated January 2020

Retirement plan sponsors face a challenging legal and economic landscape in 2020. Regulation and litigation has increased dramatically over the past decade.  While the Department of Labor’s fiduciary rule is now defunct, the SEC has adopted a best interest standard effective in 2020. While all qualified plan sponsors are fiduciaries under the Employee Retirement Income Security Act of 1974 (ERISA), legislative changes have made it confusing to determine which parties should share in that responsibility.

Since the vast majority of plan sponsors need to involve external plan managers in some capacity, it’s important to understand how financial professionals of different classes differ in what they bring to the table. Two major categories of professional assistants are available to sponsors. Broadly speaking, they can be grouped as investment brokers and retirement plan consultants.

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Why Plan Sponsors Should Regularly Benchmark Retirement Plan

Why Plan Sponsors Should Regularly Benchmark Retirement Plan

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The retirement planning space is competitive. 401(k) and 403(b) plan providers are under more pressure than ever to make sure that their services are competitive, both in terms of cost and performance. Still, the rising number of plan participant lawsuits filed against sponsors in recent years demonstrates that there remains significant leeway for less than competitive practices if sponsors aren’t vigilant. A vital component of this awareness is regular benchmarking of plan performance and fees against industry averages. This kind of cross-referencing is the responsibility of plan sponsors and can come with significant risks and opportunities. Below is a look at the factors that make sound benchmarking practices so crucial.

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