In the same way that a nonprofit’s size does not dictate its need for legal assistance, a portfolio’s size alone does not dictate the need for investment assistance.
The key role of a nonprofit organization’s trustees is to ensure that investment assets are protected and properly managed so that they can serve the organization’s mission. Regardless of the size of the investment assets, the investment committee seeks to balance the objectives of both long-term growth and ongoing funding of the organization’s grant-making activities. To fulfill their roles, trustees can and do seek guidance from objective third parties, whether for legal or investment advice.
At what point does the trustee determine if they should manage the assets on their own or hire an outsourced chief investment officer? The size of the investment portfolio may not provide a clear indication, but there are recognizable triggers that may require a closer look.
Here are five common situations when an Outsourced Chief Investment Officer (OCIO) can be the smart choice for an organization of any size.