Mercer Canada | DB Destinations: OCIO’s for DB pension plans

DB Destinations: Delegated Implementation & Investment Management

Our Thinking / DB Destinations

DB Destinations: Do you need an Outsourced Chief Investment Officer?
DB Destinations: Delegated Implementation and Investment Management
Calendar20 September 2017

Do you wonder how other people find the time to effectively manage their defined benefit pension plans? Maybe your in-house management team has been faced with tasks outside of its range of expertise lately.

If so, you’re not alone. DB plan management has become more complex in recent years, and plan sponsors like you are looking for new and effective ways to manage all the demands of a successful plan.

An outsourced chief investment officer (OCIO) could be the solution you’re looking for.

OCIO services allow you to:

  • Realize cost savings
  • Increase plan efficiencies
  • Transfer part of your fiduciary responsibility

What is an OCIO?
OCIO stands for Outsourced Chief Investment Officer. Under an outsourced CIO relationship, clients engage a third party provider to manage their investment portfolio or pension plan. Clients are supported by a Chief Investment Officer (CIO) who leads a full investment team and operations support staff.

A Guide to Your DB Destination with your own OCIO

The use of an ICIO model provides expertise to you and your investment committee while working closely with your OCIO to guide your DB plan through the three main stages of its life cycle development: growth, risk assessment, and liability hedging.

The OCIO you choose must be an expert in operations, pension risk transfers, and governance. He or she needs to know all about pension liability risks and management techniques to effectively guide your plan to the DB destination you’ve envisioned.

Everything You Need to Choose the Outsourced CIO.

Walk through the OCIO selection process with this article. You’ll learn everything you need to know to assess potential OCIO service partners for your company’s DB plan.

  1. The Skills and Traits of Successful OCIOs. Shed light on the qualities you should look for in your OCIO, such as consultation skills and the ability to leverage liability hedging tools.
  2. What to Look for in an OCIO Partner. Discover what to consider when you review potential OCIO services partners and how to evaluate a company’s commitment to its OCIO clients and global reputation.
  3. The Role of the OCIO. Learn the responsibilities you and your investment committee can trust your OCIO to fulfill.
  4. The Benefits of OCIO Services. Learn about the different ways your DB plan will benefit from a delegated solution.
  5. How to Find the Right Fit. A search firm can assist you in finding the right OCIO services fit for your unique DB plan.

 

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