Survey
Types of Outsourcing Arrangements Used/Planned
| PROVIDER RECOMMENDS MANAGER SELECTION |
PROVIDER HAS FULL DISCRETION OVER MANAGER SELECTION |
|
| Total respondents | 30% (-35%) | 70% (+79%) |
| <$100M | 50% (-7%) | 50% (+11%) |
| $100M–$500M | 35% (-20%) | 65% (+16%) |
| $500M–$1B | 50% (-30%) | 50% (+257%) |
| $1B–$5B | 16% (-58%) | 84% (+121%) |
| $5B–$15B | 50% (+150%) | 50% (-17%) |
| >$15B | 10% (-77%) | 90% (+210%) |
| (change from 2015) |
How Much of the Portfolio Is Outsourced
| 100% | 75% – 99% | 50% – 74% | 25% – 49% | < 25% | |
| Total respondents | 54% (-5%) | 14% (+2%) | 5% (-40%) | 5% (+66%) | 22% (+31%) |
| <$100M | 78% (+358%) | 22% (+31%) | 0% (-100%) | 0% (n/a) | 0% (-100%) |
| $100M–$500M | 59% (+3%) | 18% (-39%) | 12% (n/a) | 0% (-100%) | 12% (n/a) |
| $500M–$1B | 67% (+6%) | 33% (+156%) | 0% (-100%) | 0% (n/a) | 0% (-100%) |
| $1B–$5B | 53% (-5%) | 6% (-69%) | 6% (-2%) | 6% (n/a) | 29% (+55%) |
| $5B–$15B | 50% (-35%) | 0% (-100%) | 0% (-100%) | 0% (n/a) | 100% (n/a) |
| >$15B | 13% (-77%) | 0% (n/a) | 0% (n/a) | 25% (+213%) | 63% (+64%) |
| (change from 2015) | |||||
Reasons for Outsourcing
| CRITICAL | IMPORTANT | NOT VERY IMPORTANT |
NOT AT ALL IMPORTANT |
NOT APPLICABLE |
|
| Better risk management |
38% | 48% | 10% | 3% | 2% |
| Cost savings |
11% | 36% | 39% | 11% | 2% |
| Lack of internal resources |
56% | 34% | 8% | 0% | 2% |
| Additional fiduciary oversight |
38% | 41% | 11% | 8% | 2% |
| Need to increase returns |
31% | 46% | 13% | 8% | 2% |
| Faster implementation/ decisions |
31% | 36% | 28% | 2% | 3% |
| Desire for strategic partnership |
18% | 25% | 26% | 26% | 5% |
Reasons for Selecting Outsourcing Provider
| Price | 20% |
| Reputation/Peer referral | 40% |
| Experience of top management | 30% |
| Client service | 70% |
| Breadth of capabilities/services | 20% |
| Willingness to be a fiduciary | 20% |
Outsourcing Goals
| ABSOLUTE RETURN | DE-RISKING | |
| Total Respondents | 53% | 47% |
| <$100M | 57% | 43% |
| $100M–$500M | 40% | 60% |
| $500M–$1B | 20% | 80% |
| $1B–$5B | 42% | 58% |
| $5B–$15B | 100% | 0% |
| >$15B | 83% | 17% |