Outsourcing: Importing Investment Expertise

MessageThis Webinar is over
Date Oct 16, 2013
Time 2 PM - 3 PM ET
Cost Free
Online
With fast-moving markets, increased globalization and pressure on returns, pension plans, endowments and foundations are considering the best way to meet the challenge of investing pools of assets on behalf of others. As these funds continue to seek higher returns from their investment portfolios to meet their goals, many have diversified their portfolios by moving into more complicated investments. But diversifying has created its own set of problems.

In a marketplace plagued with uncertainty, risk controls and oversight have become more important than ever. Meanwhile, many institutions are being forced to scale back their staffs and cut spending. In the struggle to do more with less, a growing number of institutions are choosing to bring in external partners to help manage their investment portfolios. Additionally, investment committees are coming to the conclusion that they cannot bear the burden of fiduciary responsibility on their own, made up, as they are, of a range of individuals with financial and non-financial backgrounds, and importantly a schedule of quarterly meetings that precludes true oversight of investment decisions.

The outsourcing model brings a partner to the table: an investment management or consulting firm with the knowledge of markets, and investment expertise and tools to shoulder the burden of the CIO role. Sometimes called fiduciary management, this solution gives all those in charge of asset pools - of whatever size - the ability to establish, manage and monitor a well-defined strategic investment policy, as well as the ability to take advantage of tactical opportunities. Outsourcing partners may take over management of only a part of the portfolio, such as alternatives, or the entire thing. There are multiple factors institutions need to consider when deciding whether or not to bring in an outsourcing partner and how they might go about doing so. This webinar will address the questions an institution considering outsourcing needs to ask, as well as:
  • The advantages of partial or total outsourcing
  • How an outsourcing partner may interact with the investment committee
  • Is there a size where outsourcing no longer makes sense
  • The pros and cons of customized outsourcing vs. the one size fits all approach
  • Outsourcing as a means of heightened fiduciary oversight

 


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