2023 Outsourced Chief Investment Officer Survey

Provider Profiles


PFM Asset Management

Profile
Business Model§ OCIO + other
Year Entered Into OCIO Business2006
No. of Relationship Managers/Salespeople15
No. of OCIO Portfolio Managers7
OCIO % of Total Firm Revenue20%
No. of Clients, Full Discretion258
Full Discretionary Assets
Total Full Discretionary OCIO Assets$16.9b
Discretionary Assets by Fund Type
Defined Benefit$8.5b
401(k), 403(b), Other DC$4.9b
Endowments/Foundation$1.7b
Healthcare Pools (Board designated, funded depreciation)$511mm
Other$1.2b
Portfolio Construction
PFM Asset Management views asset allocation (strategic and tactical) as the most important drivers of returns, with manager selection being the third main factor. They also utilize both active and passive strategies depending on the efficiency of the asset class, available universe of managers and timeframe for the allocation. Rather than focusing solely on manager selection to add value, they seek to build a diversified portfolio, with both active and passive components, and adjust the weights to various asset classes or sectors based on their views of the market as a primary source of adding value to their client portfolios. Their Investment Committee and research team meet formally on a monthly basis.
§OCIO only: Open-architecture (no proprietary products used): Investment outsourcing is only business line.

OCIO + other: An open-architecture/manager-of-manager investment outsourcing platform as one of multiple business lines.

Implemented consulting: i.e. consulting firm that also has discretion over assigned assets.

Proprietary/non-proprietary: An investment outsourcing platform that offers proprietary products alongside non-proprietary products.

Other: OCIO Platform is something other than the 4 types listed above.