Discretionary Management, Clearstead Prism OCIO

 

custom outsourced CIO solutions focused through the clearstead prism

Our proprietary Clearstead PRISM OCIO® service allows institutions to handle essential responsibilities of their plan, while Clearstead handles the management of investment portfolios after clearly defining objectives, quantifying risk, and creating benchmarks. Research drives our decision making, and we are quantitatively focused — tempered with the qualitative value of decades of experience and practical judgment.

Learn how our discretionary management will complement your infrastructure and become an extenstion of your team and strategic goals. 

case study: Prominent Cultural Institution

Financial modeling and a CUSTOM OUTSOURCED CIO approach create vision AND stability

Case Study: Non-Profit

Customized OUTSOURCED CIO solutions offer non-profit the freedom to focus on institutional objectives

Case Study: Hospital

Tailored OUTSOURCED CIO approach integrates organizational and financial objectives with asset allocation

EMAIL US YOUR RFP AND LEARN HOW CLEARSTEAD PRISM OCIO BRINGS CLARITY TO THE COMPLEX PRIORITIES OF OUR CLIENTS

DEMAND FOR OCIO

The Outsourced Chief Investment Officer (OCIO) approach has gained significant traction among institutional investors. When executed effectively, it properly aligns responsibilities between investment advisors and institutional fiduciaries. Investment advisors are delegated discretionary management of investments within prescribed guidelines, while trustees and staff can focus on the essential responsibilities of investment and spending policy.

DO’S AND DON’TS

Embarking on an OCIO program for your institution is not to be taken lightly. Too often, advisory firms have used OCIO services as a conduit for investment products, delivering unclear and unproven results while losing context and the alignment of investment strategy with organizational priorities.  Trustees and staff can become disconnected with the investment portfolio, which gets worse with natural trustee turnover. The outsourced chief investment officer becomes less of a partner, and more of a salesman. In the meantime, the institution’s fiduciary risk has not been delegated effectively, and staff and trustees understand less about the investments — a potentially difficult combination.

 

Yet there are solid reasons to consider an OCIO approach.  Investment issues can tax staff and resources, siphoning time from other issues that arise each day.  Often investment decisions must occur quickly and require a depth of expertise many institutions may not have. Delegating discretion to an outsourced chief investment officer can save meaningful time, result in more efficient execution of investment programs, and effectively realign responsibilities between trustees, staff, and financial advisors.

STAYING ENGAGED

Clearstead’s PRISM OCIO® service does this exactly. Clearstead does not manufacture or sell products, so we strive to be objective in our investment research and the advice we give clients. Moreover, through our Clearstead PRISM OCIO service, we serve clients according to their specific requirements: either with full discretion or in a hybrid approach that grants discretion within specific guidelines. Although Clearstead is granted investment discretion, we still collaborate on investment and spending policy, which we believe are too important to be delegated to an advisor alone. Clearstead is an engaged OCIO, leading client investment programs with objectivity and clarity.

TRANSITIONING TO AN OUTSOURCED CIO

Clearstead does not demand any specific level of discretionary management. Rather, our Clearstead PRISM OCIO model allows us to be flexible in the way we work with our clients and can assist institutions in easing into a full or partial discretionary relationship that best suits their objectives and needs. Furthermore, we provide clients with the same tailored approach along the broad spectrum of discretionary management levels. Our consultants have experience leading clients through these transitions and strive to keep clients informed and engaged in the process.

Find Your Clarity

Clearstead is structured to put client's interests first through our fee-0nly advisory model. Clearstead is independent and believes this is central to providing objective advice to clients.

Clearstead is an institutional and private client advisory firm that is relentless in providing solutions so our clients can exceed their aspirations and build stronger legacies for their families, their communities, and themselves.

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