The chief investment officer (CIO) is a job title for the board level head of investments within an organization. The CIO's purpose is to understand, manage, and monitor their organization's portfolio of assets, devise strategies for growth, act as the liaison with investors, and recognize and avoid serious risks, including those never before encountered.[1][2][3]
Whenever the role of the chief investment officer is active within an insurance company (either life or non-life) and/or pension fund, the role is to manage and coordinate the investment, liquidity (treasury) and/or asset and liability management in order to optimize investment performance within the risk appetite as defined by actuarial studies of risk management guidelines.[citation needed] The role of a chief investment officer within a corporate pension organization is similar, although the end-goal for the chief investment officer is often not profit, but matching the organization's pension assets with its pension liabilities.[5] Chief investment officers at endowments and foundations also consider the liabilities of the organization, with an added focus on liquidity and alternative assets.[6]
Outsourcing modelsedit
Backgroundedit
Jonathan Hirtle, Chief Executive Officer for Hirtle, Callaghan & Co.,[7] pioneered the outsourced chief investment officer (OCIO) model, which serves family groups and organizations that do not employ fully staffed investment departments.[8][9] For his OCIO innovations, Hirtle has been dubbed the “"Oracle of Outsource".[10]
Current OCIO modelsedit
The model by which outsourced CIOs service clients is still evolving in this nascent business. The most common model is to outsource all decision-making including asset allocation, manager selection and monitoring. The OCIO reports back to the client, but the burden is largely lifted from the client and placed on the new provider. Among OCIOs utilizing this approach, there is a "continuum of outsourcing approaches and providers: manager-of-manager programs; funds-of-funds; former CIOs offering a diversified model portfolio".[11] The common thread amongst these approaches is the use of commingled funds or model portfolios which creates economies of scale for the OCIO.
A different model is pursued by a small subset of the OCIO universe. The members of this group work alongside the client's staff – not as a replacement to them. According to investment industry newsletter FundFire, "An increasing number of CIOs see outsourcing not as a threat to their job, but as a source of complementary expertise and advice, as well as investment opportunities." Like much of the nomenclature around the OCIO business, this more customized, bespoke solution does not yet have a widely recognized name. Fiduciary Research (FRC), an OCIO who oversees about $9 billion on behalf of a small list of pension fund clients, calls itself an iCIO for integrated chief investment office.[12]
^eFinancialCareers, a Dice Holdings, Inc. company. . Archived from the original on 2008-12-03. Retrieved 2009-05-13.{{cite web}}: CS1 maint: multiple names: authors list (link)
^U.S. Department of the Treasury. . Archived from the original on 2009-05-11. Retrieved 2009-05-13.
^aiCIO. . Archived from the original on 29 May 2011. Retrieved 12 September 2011.
^aiCIO. . Archived from the original on 31 March 2012. Retrieved 12 September 2011.
^. Hirtle Callaghan & Co. Archived from the original on 16 April 2014. Retrieved 15 April 2014.
^"Who We Are". Hirtle Callaghan & Co. Retrieved 15 April 2014.
^Williamson, Christine. "Hirtle Callaghan co-founder was an early leader in developing investment outsourcing". Pensions & Investments. Retrieved 15 April 2014.
^Rabicoff, Richard. . citybizlist. Archived from the original on 16 April 2014. Retrieved 15 April 2014.
^Urie, Sandra. "CIO Outsourcing: Questions Investment Committees Need to Ask" Forbes, June 30, 2010. Viewed June 20, 2013.
^Sturock, Tim. "Institutions Split over Hybrid CIO/OCIO Model" FundFire, June 5, 2013.
January 01, 1970
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The chief investment officer CIO is a job title for the board level head of investments within an organization The CIO s purpose is to understand manage and monitor their organization s portfolio of assets devise strategies for growth act as the liaison with investors and recognize and avoid serious risks including those never before encountered 1 2 3 Contents 1 Usage in the United States of America 2 Outsourcing models 2 1 Background 2 2 Current OCIO models 3 See also 4 ReferencesUsage in the United States of America editAccording to a press release on October 22 2008 the United States Department of the Treasury named James H Lambright to serve as the interim chief investment officer for the Troubled Asset Relief Program He will provide counsel to Secretary Henry M Paulson Jr and Interim Assistant Secretary for the Office of Financial Stability Neel Kashkari as they develop and implement the program 4 Whenever the role of the chief investment officer is active within an insurance company either life or non life and or pension fund the role is to manage and coordinate the investment liquidity treasury and or asset and liability management in order to optimize investment performance within the risk appetite as defined by actuarial studies of risk management guidelines citation needed The role of a chief investment officer within a corporate pension organization is similar although the end goal for the chief investment officer is often not profit but matching the organization s pension assets with its pension liabilities 5 Chief investment officers at endowments and foundations also consider the liabilities of the organization with an added focus on liquidity and alternative assets 6 Outsourcing models editBackground edit Jonathan Hirtle Chief Executive Officer for Hirtle Callaghan amp Co 7 pioneered the outsourced chief investment officer OCIO model which serves family groups and organizations that do not employ fully staffed investment departments 8 9 For his OCIO innovations Hirtle has been dubbed the Oracle of Outsource 10 Current OCIO models edit The model by which outsourced CIOs service clients is still evolving in this nascent business The most common model is to outsource all decision making including asset allocation manager selection and monitoring The OCIO reports back to the client but the burden is largely lifted from the client and placed on the new provider Among OCIOs utilizing this approach there is a continuum of outsourcing approaches and providers manager of manager programs funds of funds former CIOs offering a diversified model portfolio 11 The common thread amongst these approaches is the use of commingled funds or model portfolios which creates economies of scale for the OCIO A different model is pursued by a small subset of the OCIO universe The members of this group work alongside the client s staff not as a replacement to them According to investment industry newsletter FundFire An increasing number of CIOs see outsourcing not as a threat to their job but as a source of complementary expertise and advice as well as investment opportunities Like much of the nomenclature around the OCIO business this more customized bespoke solution does not yet have a widely recognized name Fiduciary Research FRC an OCIO who oversees about 9 billion on behalf of a small list of pension fund clients calls itself an iCIO for integrated chief investment office 12 See also edit nbsp Business portal Chief information officerReferences edit Answers com Accounting Dictionary Chief Investment Officer CIO Answers com Retrieved 2009 05 13 eFinancialCareers a Dice Holdings Inc company Berkshire Hathaway Seeks Chief Investment Officer Archived from the original on 2008 12 03 Retrieved 2009 05 13 a href Template Cite web html title Template Cite web cite web a CS1 maint multiple names authors list link Musher Rafi 2009 01 27 What Obama Needs Now A Chief Investment Officer Forbes Retrieved 2009 05 13 U S Department of the Treasury Treasury Names Interim Chief Investment Officer for TARP Archived from the original on 2009 05 11 Retrieved 2009 05 13 aiCIO LDI 2 0 Archived from the original on 29 May 2011 Retrieved 12 September 2011 aiCIO Anne Martin Thinks Liquidity Is Key Archived from the original on 31 March 2012 Retrieved 12 September 2011 Who We Are Leadership Hirtle Callaghan amp Co Archived from the original on 16 April 2014 Retrieved 15 April 2014 Who We Are Hirtle Callaghan amp Co Retrieved 15 April 2014 Williamson Christine Hirtle Callaghan co founder was an early leader in developing investment outsourcing Pensions amp Investments Retrieved 15 April 2014 Rabicoff Richard Hirtle Hedge Fund Hurtles to 37 8M citybizlist Archived from the original on 16 April 2014 Retrieved 15 April 2014 Urie Sandra CIO Outsourcing Questions Investment Committees Need to Ask Forbes June 30 2010 Viewed June 20 2013 Sturock Tim Institutions Split over Hybrid CIO OCIO Model FundFire June 5 2013 Retrieved from https en wikipedia org w index php title Chief investment officer amp oldid 1142843483, wikipedia, wiki, book, books, library,
