Key Takeaways
- • Large asset managers, often called megamanagers, are winning outsourced chief investment officer (OCIO) market share from traditional investment consulting firms that once dominated the outsourcing segment, according to Pensions & Investments.
- • Leaders of OCIO businesses at asset managers attribute the shift partly to a changing client base, according to the publication's coverage of the segment.
- • Industry data cited in publisher context shows 46% of institutional asset owner organizations currently outsource, with 2% planning to do so in the next 12 months, per the 2025 survey referenced.
- • Pension and endowment-type organizations, including union pensions (50%), are among the groups most likely to outsource or consider outsourcing, according to a 2025 CIO outsourced investment manager survey.
Summary
Pensions & Investments reports that large asset managers are gaining share in the outsourced chief investment officer market, displacing traditional investment consulting firms that had long dominated the outsourcing lane. The publication's ranking of OCIO providers, titled "Megamanagers are winning share in a shifting OCIO market," examines how these firms now compare.
According to the publisher's coverage, leaders of OCIO businesses at asset managers say a changing client base is a key driver of the trend. Outsourced CIO arrangements involve full discretionary management of institutional portfolios rather than advisory services, and the publication's directory lists 29 OCIO firms, with Mercer, Goldman Sachs and BlackRock among the largest.
Industry research cited in the coverage indicates that 46% of institutional asset owner organizations currently outsource some or all of their investment management, and 2% plan to do so within the next 12 months. A 2025 CIO outsourced investment manager survey found that union pensions (50%) are among the organization types most likely to outsource or consider doing so, alongside endowments.
Coverage also notes that large OCIO managers are investing heavily in technology to manage growth and address the next wave of demand, including mass customization of outsourced portfolios. Russell Investments, cited in the publisher's awards coverage, was ranked #1 in Public Retirement and among the top five in Global OCIO Providers, Global Corporate Defined Benefit and Insurance.
According to the publisher's coverage, leaders of OCIO businesses at asset managers say a changing client base is a key driver of the trend. Outsourced CIO arrangements involve full discretionary management of institutional portfolios rather than advisory services, and the publication's directory lists 29 OCIO firms, with Mercer, Goldman Sachs and BlackRock among the largest.
Industry research cited in the coverage indicates that 46% of institutional asset owner organizations currently outsource some or all of their investment management, and 2% plan to do so within the next 12 months. A 2025 CIO outsourced investment manager survey found that union pensions (50%) are among the organization types most likely to outsource or consider doing so, alongside endowments.
Coverage also notes that large OCIO managers are investing heavily in technology to manage growth and address the next wave of demand, including mass customization of outsourced portfolios. Russell Investments, cited in the publisher's awards coverage, was ranked #1 in Public Retirement and among the top five in Global OCIO Providers, Global Corporate Defined Benefit and Insurance.
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