Advisors: What was March like for your clients? Were they calling in to move to cash? Did you struggle with daily talking points to assure your investors? Was there anything within your portfolios you could brag about while the market took a 30% nosedive?
After March’s shattering market downturn, your clients are looking to you for guidance through these challenging times, and perhaps even looking for some serious strategic thinking for how to navigate through this financially. If you already have an in-house expert who can answer every question your clients have and shine a bright floodlight into the foggy future: Great!
If not, don’t panic. An outsourced Chief Investment Officer (OCIO) role can provide the clarity and strong hand that your clients and even some of your advisors may be seeking during this time. They’ll be able to advise you objectively about complex financial subjects and provide insight on alternative investment models and management styles like hedging strategy. And, because outsourced role that functions essentially like a high-octane consultant (except with all your branding), it’s cheaper than hiring an in-house CIO.
Here are just a few of the benefits of adding an outsourced Chief Investment Officer (CIO) role to your team:
Key Responsibilities Your OCIO Will Own
Under the OCIO model, you delegate some amount of responsibility for your investments to a full-time investment advisor with specialized experience in the field. This individual will be able to perform different duties based on their level of involvement, but typically they can do anything from provide weekly briefings on the state of the market and how it impacts your clients, advise on hedge style management strategies, to taking a hand in asset management themselves.
The takeaway: Your OCIO will be responsible for managing the intricate complexities of a volatile market—and their impact on you—as much as they will help smooth communication between you and your clients. By handing over these responsibilities to a seasoned professional with a track record of growth and managing through crisis, you are free to concentrate on running your business.
Key Benefits Your OCIO Will Provide
An OCIO role like this offers a wide range of benefits both internally and on the client-facing side of things. It offers your team the ability to diversify your resources and perspectives—without breaking the bank—and enables you to bring a set of fresh eyes to the table in a time of turmoil. Plus, an OCIO relationship doesn’t have to work like a consultant, where you bring them in to fix a problem and then say goodbye. Many firms partner with OCIOs over a period of many years, ushering in a new era of growth or weathering a long period of uncertainty.
The takeaway: Your OCIO will become a seasoned partner in your business’s goals and a familiar voice that your clients can trust and rely on for years to come. The benefit here is twofold, since you will gain an expert advisor’s voice without the price tag, and your clients will know that there is someone “on their side” at the table.
Key Challenges Your OCIO Can Overcome
During natural disasters, global pandemics, and market downturns, your company needs both a strong hand on the wheel, and a strong voice of reason to reassure your clients. While you focus on operating your business and all the challenges that come with that, your OCIO can help you with the second challenge: Communication. As a seasoned financial professional, often with decades of experience working in range of financial markets and economic circumstances, your OCIO will be able to both manage client relationships and help ensure that your firm’s strategies remain true to your mission during this time.
The takeaway: Your OCIO will help your company overcome challenges throughout a difficult time. This will not only improve your risk tolerance both now and future, but it will help guide strong professionals inside your organization to better manage themselves, their investments, and their clients, should such a situation occur again.
These are just a few of the substantial benefits of bringing a CIO onto your team—and as an OCIO, at a fraction of the cost. At GRN Mid-Cities, we regularly recruit CIOs and OCIOs, and partner with RIAs and portfolio managers to match top talent with your needs. If you’ve had a rough first quarter and are looking at the rest of your year with apprehension, it may be time to consider adding either a traditional or a fixed-cost OCIO to your team. With our connections across the financial industry and beyond, we can help connect you with the right individual that fits your needs.