Asset Owner Outlooks: 5 Insights OCIOs Should Know

The global outsourced chief investment officer (OCIO) industry has experienced exciting growth, with plenty more ahead. Predictions from Pensions & Investments say that OCIO assets under management will reach $4.2 trillion globally by 2028, up 35% from 2024’s $3.1 trillion assets.^[1]

The growth in this space reflects a trend of institutional investors increasingly seeking specialized expertise and operational efficiency through OCIOs (also known as fiduciary managers in EMEA markets). Factors driving this trend include greater diversification into alternative asset classes, heightened market volatility, and better access to desirable investment managers and funds. 

As noted by Cerulli Associates, the OCIO space is relatively young, emerging just 30 years ago and displaying significant growth in the last 15 years.^[2] As more providers materialize to fill this growing asset owner need, OCIOs will have to think about how to differentiate themselves from their peers and capture market interest. 

Not only is it key to understand how to capture new asset owner opportunities, but also to retain clients. According to an April study by Crisil Coalition Greenwich, 60% of U.S. asset owners surveyed said poor investment performance triggers a review of their consultants or outsourced chief investment officers.^[3] Times of volatility, frequent in the current environment, could also spark interest in exploring other OCIO options in the market.  

Northern Trust’s recent global asset owner peer study, Asset Owners in Focus, delivers revealing insights into the minds and needs of today’s asset owners. Focusing on these key trends can help OCIOs meet their target audience where they are and speak pointedly to their concerns. Read on for the top insights from the study of 144 institutions (including pension funds, family offices, endowments, insurance firms, healthcare firms, and more), as well as how the views of 36 OCIOs compare to these traditional asset owners. 

1. Fees are the top driver in selecting partners 

OCIOs should keep in mind that asset owners are price sensitive when it comes to selecting service providers. According to our study, 70% of asset owners list fees and pricing as a top factor in choosing a new service provider.

This price sensitivity also extends to fees assessed by general partners (GPs) – 45% view GP terms and fee structures as a main external challenge. This could be a pointed opportunity for OCIOs to not only identify investment opportunities that carry fees and terms that their asset owner clients find reasonable, but also to bring them into new investment opportunities where they may not have had access before, as detailed in our next point.

2. Accessing desired funds and investment managers can be a struggle 

Our study found that 40% of asset owners see access to desired funds and asset managers as a main external challenge. As we’ve noted in our previous article, Outsourced Chief Investment Officers face a changing asset landscape in 2025, it is particularly key for smaller asset owners to be able to access highly skilled asset managers that were previously only accessible to the largest institutional investors.  

OCIOs will want to show how they can be that difference-maker for asset owners, unlocking new investment opportunities across asset classes. This will especially be the case as allocations to alternative investments continue to grow. The Asset Owners in Focus study shows that 86% of asset owners are currently allocated to alternative asset classes, with an average allocation of 20%. 

3. Additional transparency from investment managers is recognized and welcomed 

According to our study, 61% of asset owners feel that their investment managers and GPs have become more transparent in sharing information in the past year. As allocations to private markets – a notoriously manual asset class – have grown, it’s clear that investors feel their asset managers have risen to the occasion of keeping them in the loop on fund performance, fees, and other matters. With OCIOs as the trusted middlemen between asset owners and asset managers, asset owners will look to them to advocate for continued transparency on their behalf. 

4. Liquidity is a growing concern 

Liquidity continues to be front of mind for asset owners, as 59% note it becoming more important over the last 12 months, driven overwhelmingly by the interest rate environment (72%). Higher returns (39%), and changes in their risk strategies (38%) were cited as the next most important drivers. 

It’s encouraging to see that OCIOs are on top of this trend – a whole two-thirds of OCIOs surveyed also noted liquidity becoming more important. With this in mind, regular communication on macroeconomic outlook and current approach to liquidity management will go far with asset owner clients. 

5. Consistency across data and applications is a top tech priority 

With allocations to alternative assets growing, data tracking and reporting has become more complex, and that is shown in asset owners’ feedback within our study. Asset owners named accuracy of data (46%), consistency of data (40%), and timeliness of data (33%) as their top-three data and technology challenges. To answer these challenges, OCIOs will require a strong operating model capable of not only providing returns to asset owner clients, but also streamlined and accurate reporting on a reliable schedule. 

Automation shows promise for achieving not only accurate data reporting, but also additional productivity, scalability, and risk mitigation. However, 81% of asset owners stated that increasing their efficiencies and automation is a top-three internal operational challenge. This is a key realm for OCIOs to add value and they’re on the right track to do so, as 67% are already implementing automation to reap efficiencies compared to only 54% of their target asset owner clients.

How OCIOs can capitalize on growth with the right support 

Many OCIO firms that have been expanding steadily are currently at a pivotal moment where their next steps will significantly shape their future trajectory. After a period of rapid growth, these firms must now evaluate how to sustain momentum amid evolving market conditions and changing asset owner expectations. This phase calls for strategic reassessment and possibly operational shifts to navigate new challenges and opportunities effectively. 

OCIOs are vocal about these operational support needs when asked. From our study, a few key areas where service providers could be of support include: 

• Research (industry, sector specific, etc.) – 67% 
• Data support and reporting solutions – 67% 
• Investment analytics support – 58% 
• Investment due diligence support – 58% 

At Northern Trust, we understand OCIOs’ unique role in the market and the importance of finetuning an operational model while also serving a growing client base with accuracy, integrity, and strong returns despite certain market headwinds. 

Dive into additional insights by downloading our full asset owner survey or reach out here to learn more about our OCIO servicing abilities.