Investment Overview

Institutions are increasingly looking to delegate fiduciary management as they face persistent financial market turbulence, regulatory challenges and ambitious investment goals. As a result, plan Committees are searching for an external partner in the form of an outsourced CIO (OCIO) to help diversify their portfolios or supplement investment decision-making.
 
Generally, using an outsourced partner means delegating investment management discretion for all or part of a plan’s assets to a third-party provider. For over 40 years, the Multi-Asset Solutions (MAS) team has been managing assets for pensions (corporates, publics and multi-employer plans), as well as for endowments, foundations, and insurance companies in a full discretionary capacity. The group has an established track record as an investment manager and fiduciary with a special emphasis on asset allocation innovation and access to a broad range of public and private opportunities.
 

Investment Approach

We believe OCIO relationships begin with a thorough understanding of each client’s unique objectives. We then bring our capital markets knowledge, strategic and active asset allocation experience, portfolio construction and risk management skills to deliver customized solutions and an industry-leading investment lineup that are designed to address clients’ unique needs. We seek to flexibly invest where we believe the risk-adjusted reward is most attractive and we dynamically shift asset class and country weights to enhance each portfolio’s risk/return profile.
 
Generally, there are three OCIO models:

1) Multi-asset allocation with majority of assets maintained in-house:
  • The plan maintains substantial assets in-house but looks to benefit from an external partner managing a parallel allocation from which plan staff can garner investment insights
  • The client seeks to benefit from our proprietary research and portfolio insights
  • The investment manager manages a portion of the total portfolio
2) Multiple manager outsourcing:
  • Several managers (typically 2-3) run distinct portfolios with complementary styles to diversify decision-making and foster comparison of results
  • Each manager may have a distinct segment of the portfolio or each may have an identical slice/objective
  • Lead manager may provide consolidated reporting
3) Single manager outsourcing:
  • The client delegates all of a plan's asset management to one provider
  • One firm consolidates investments, operations, and reporting
 
Clients choose J.P. Morgan for our innovative solutions as well as for our time-tested track record that demonstrates strong risk-adjusted results across strategies. We can help you implement any of these options, depending on your circumstances and investment objectives.