OCIO is used by a range of institutional investors, including endowments, foundations, and family offices. While the model was once more common among smaller organizations, it is increasingly adopted by larger and more complex institutions seeking scale, flexibility, and dedicated investment resources.
An OCIO partnership designed for lasting success
As your outsourced chief investment officer (OCIO), we take responsibility for day‑to‑day investment decision‑making and execution within a governance framework we build with you. We work to understand your institution’s unique circumstances – your mission, funding considerations, spending needs, and short‑ and long‑term risk and return goals. From there, we design an investment plan that seeks to support ongoing spending while preserving your portfolio’s long‑term purchasing power.
Our approach to OCIO investment management combines close collaboration with access to leading investment managers across asset classes. We complement this approach with comprehensive OCIO solutions that strengthen governance, operations, and oversight, allowing your organization to remain focused on its mission.
We invest alongside our clients and manage assets with the same care and discipline we apply to our own. This shared commitment fosters a distinctive investment culture and strong alignment of interests. With more than 200 years of experience stewarding our own institution, we bring a long‑term perspective designed to help you achieve enduring success.
1Borrowed funds cannot be used to purchase securities in the portfolio.
How we construct portfolios as your OCIO
Our responsibility as OCIO is to construct and manage portfolios designed to support your institution’s long‑term objectives and fiduciary responsibilities. We build OCIO portfolios by combining deep experience in institutional portfolio management with disciplined manager selection, partnering with what we believe are leading investment managers across asset classes.
Our focus is on creating resilient portfolios that seek to preserve capital, support spending needs, and enable long‑term growth across market cycles. The portfolio is guided by a clear set of investment principles designed to balance risk, return, and liquidity within a robust OCIO framework.
| Equity Bias | Adequate Liquidity | Prudent Leverage | Risk Management | Active Rebalancing |
|---|---|---|---|---|
| We view an equity bias as necessary to help meet ongoing spending needs while preserving long‑term purchasing power. | We believe institutional portfolios must maintain adequate liquidity to support spending requirements as they arise. | We do not believe leverage is necessary to generate strong long‑term returns; when used, it should be modest. | We believe strategies and assets with lower correlation or countercyclical behavior can add meaningful diversification. | We believe portfolios should be rebalanced to targets when allocations move outside defined ranges. |
BBH partners and senior executives bring deep experience serving tax‑exempt organizations and acting as fiduciaries, enabling us to support clients with the care and accountability required of an OCIO."
The BBH OCIO difference
- An investment office for hire: As an OCIO, we deliver the depth and breadth of a fully built internal investment office. We provide discretionary investment management alongside banking, lending, philanthropic advisory, and comprehensive reporting – without the cost and complexity of maintaining a standalone internal team.
- An extension of your organization: We are designed to complement, not replace, your leadership and governance framework. Our OCIO approach is highly integrated, operating as an extension of your staff and working closely with boards, committees, and internal teams to support effective decision‑making and execution.
- Proven OCIO expertise: We have served as an OCIO for more than 90 years. Our investment leadership includes former endowment and foundation investment office professionals, bringing firsthand institutional experience and a long‑term stewardship mindset to every OCIO partnership.
FAQs
Outsourced chief investment officer (OCIO) refers to an arrangement in which an organization delegates investment management responsibilities to an external partner. The OCIO is accountable for portfolio construction, manager oversight, and day‑to‑day implementation, operating within a governance framework defined by the client.
An OCIO serves as a fiduciary and is responsible for executing investment decisions, including portfolio construction, manager selection, rebalancing, and ongoing risk management. While execution authority is delegated, the organization continues to set its objectives, constraints, and long‑term priorities.
Maintaining an institutional‑quality investment program requires specialized expertise, operational capacity, and global access. An OCIO model allows organizations to access these capabilities without building them internally. In addition to investment management, OCIO relationships often support reporting, coordination, and stakeholder communication, helping organizations focus more fully on their broader mission.
This communication is for informational purposes only. The information herein has not been based on a consideration of any individual investor’s circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal or regulatory advice. Individuals should consult their personal tax, accounting and legal advisers regarding any potential investment or strategy. Any views and opinions are subject to change at any time.
This material does not constitute an offer or solicitation in any jurisdiction where or to any person to whom it would be unauthorized to do so.
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