Survey
Reasons for Outsourcing
Outsourcing Goals
|
All respondents
|
<$500M
|
$500M–$1B
|
>$1B
|
|
| Absolute return | 34.6% | 20.0% | 0.0% | 66.7% |
| De-risking | 38.5% | 53.3% | 50.0% | 11.1% |
| Other | 26.9% | 26.7% | 50.0% | 22.2% |
Fee Structures
Outsourcing Fee Structure
|
All respondents
|
<$500M
|
$500M–$1B
|
>$1B
|
|
| Flat-basis-point fees | 69.2% | 66.7% | 50.0% | 77.8% |
| Sliding asset-based fees | 15.4% | 13.3% | 0.0% | 22.2% |
| Multiple fee structures used | 15.4% | 20.0% | 50.0% | 0.0% |
| Performance fees | 0.0% | 0.0% | 0.0% | 0.0% |
OCIO Evaluation
Most Important Deliverables
Responses were ranked from 1 (most important) through 8 (least important)
| Investment performance | 1.8 |
| Value for fees | 3.3 |
| Risk management and pension de-risking | 3.7 |
| Client service and communications | 4.4 |
| Operational support | 4.4 |
| Technology and data management | 5.5 |
| Value-added services | 5.8 |
| Mission-aligned investing (including ESG) | 7.2 |
Other Services Provided
The largest % figures represent the most-listed services.
| Governance best practice | 59.1% |
| Regulatory guidance | 50.0% |
| Scenario analysis or enterprise risk management | 40.9% |
| Education services | 27.3% |
| Strategic actuarial planning | 22.7% |
| DC consulting | 18.2% |
| Mission alignment (e.g., ESG, sustainability) | 13.6% |
| None | 12.0% |
| Endgame advice | 9.1% |
| Other | 9.1% |