OCIO Services

LCG began offering Outsourced Chief Investment Officer (“OCIO”) services to accommodate clients seeking a more streamlined, dynamic investment process and program. LCG offers a fully-customized, open architecture approach to OCIO services. We believe this is the most effective method for adding value via manager selection and facilitating a process that works best for clients. Structuring OCIO relationships in this manner also ensures LCG’s interests are aligned with our clients’. We also believe this provides a more flexible and tailored solution as opposed to a turnkey approach that focuses on asset gathering. The scope of services LCG offers to OCIO clients may include, but is not limited to:

  • Governance and investment policy design recommendations
  • Asset allocation advice and portfolio implementation
  • On-going portfolio positioning and rebalancing
  • Investment manager due diligence, search, selection, and implementation
  • Investment manager fee analysis and negotiation
  • On-going risk management and portfolio monitoring
  • Custodian analysis, search, and recommendations

To leverage Staff’s time, LCG can perform the following day-to-day portfolio management responsibilities that Staff would normally be responsible for:

  • Monitoring portfolio activity, including investment policy compliance
  • Managing trading and transaction activities, including rebalancing
  • Executing cash distributions, including capital call management
  • Managing cash between accounts and custodian
  • Preparing investment documents
  • Assisting with proxy voting
  • Assisting with securities gifting – understand gift acceptance policy and coordinating with other client committees, if needed
  • Cultivating relationships with service providers

If there are other areas that would help leverage Staff’s time, we are happy to assist as needed.

Below is how LCG’s OCIO services compare to non-discretionary services:

Type of Consulting Relationship

LCG’s Services Provided

Discretionary

Non-Discretionary

Serves as a fiduciary
Portfolio construction advice
Provide advice / recommendations
Provide advice on rebalancing

Provide advice on manager hire/fire decisions

Implement advice / recommendations

Authority to hire/fire investment managers

Authority to rebalance portfolio

Authority to instruct custodian to execute changes

Authority to execute contracts
✓/-

On-going monitoring
Client’s Role:

Delegate control Sets investment guidelines, restrictions

Retain control Sets & executes investment guidelines, etc.

LCG’s Role:

Support Investment Committee / Staff Execute on Staff’s behalf

Support Investment Committee / Staff