NEW YORK, July 25, 2012 /PRNewswire/ -- Philanthropy Management magazine reports that a growing number of small to mid-sized philanthropies have chosen to outsource investment decisions to a single manager, but with little industry-wide agreement as to how this is best achieved.
"The use of outsourced chief investment officers (OCIO) often differs markedly from one institutional investor to another," said Richard Schwartz, Philanthropy Management's editor. He noted there is considerable industry debate as to how much influence, if any, the client institution should have with regard to investment policy, and whether the investment manager should be allowed complete discretion over every investment decision. "Philanthropies also hold very different opinions as to the fiduciary liability an OCIO assumes and how liability should be defined," Mr. Schwartz added.
According to a recent survey in Philanthropy Management's sister publication, aiCIO, there is little unanimity as to how institutional investors view OCIO. "As OCIO becomes more popular, it is clear there are many ways to skin this cat," observed Heather Myers, managing director of non-profits at Russell Investments. She commented that for any institution considering OCIO, the true challenge is to identify who makes each investment decision as well as the true cost of each decision.
The complete story is available in the print edition and at the newly launched www.philanthropy-management.com, which highlights multimedia offerings and provides daily online-only content.
About Philanthropy Management
Philanthropy Management, an Asset International publication, focuses on the financial, operational and strategic services provided to foundations, endowments and other large-scale grant makers by banks, asset managers and other professional advisors. Edited by Richard Schwartz, it is distributed globally to more than 11,000 senior executives within the largest grant making entities in the Americas, Europe, Asia and Middle East, including foundations and endowments, family foundations and family offices. Philanthropy Management aims to provide philanthropic institutions with a broader and more refined range of tools, resources and research to measure their own success and the impact of the advisors they use. Please visit philanthropy-management.com.
About Asset International
Asset International is a privately-held provider of information and technology to global pension funds, asset managers, financial advisers, banking service providers, and other financial institutions in the private and public sector. Its industry-leading brands include Strategic Insight, SIMFUND, Plan For Life, PLANSPONSOR, PLANADVISER, aiCIO, Philanthropy Management, Global Custodian, and The Trade. The company has offices in New York, Hong Kong, London, Melbourne and Stamford, CT.
SOURCE Philanthropy Management