OCIO (Outsourced Chief Investment Officer)
Since our inception in 1990, XPYRIA has been a pioneer in what today has become known as OCIO services. Our clients hire us as a third-party discretionary consultant to manage their investment portfolios. Our role is to optimize performance within the mutually established guidelines, which include: investment strategy, portfolio construction, risk management, investment manager hiring and firing, and re-balancing. As a fiduciary, we are required to only act in our clients’ best interest. We are completely independent in our role and do not profit in any way from any third party source. The only fees we accept are paid directly to us by our clients. Just as each client is unique, so is the appropriate combination of OCIO services needed to meet your goals. Your OCIO solution may include:
- Asset Allocation Analysis
- Diversification Analysis
- Asset/Liability Matching
- Liability Driven Investing
- Cash Flow Analysis
- Investment Manager Selection and Oversight
- Investment Policy Development
- Fiduciary Support on Plan Governance and Compliance
- Performance Reporting
- Cost Control
- Active Management
- Passive and Enhanced Index Solutions
- Strategic Management
- Tactical Management
Our client relationships always include a Consultative Process centered around understanding your needs as they evolve over time. We will:
- Assess Client Circumstances
- Construct Portfolio Best Suited to Client’s Needs
- Select Most Appropriate Investments to Build Portfolio
- Provide Performance Monitoring, Rebalancing, and Reporting
- Make Changes as Needed
- Make prompt service to the client a cultural priority.
- Always strive to provide additional value to the client relationship.
- Tailor service and information in a relatable fashion to meet the client’s needs.
- Meet regularly with clients to foster long-term trust and two-way communication.
- Explain actions to reinforce and promote intelligent investing.
- Act with true professionalism and scrupulous honesty.
Investment Manager Selection Process
As a manager-of-managers, we construct portfolios using the appropriate blend of carefully-selected, no-load mutual funds or separate accounts. Discipline is the cornerstone of our investment manager (mutual fund or separate account) selection process. We select disciplined, experienced, and shareholder-oriented managers. Our rationale is simple, we select managers whose best interests are aligned with your (our clients’) best interests and who resist the temptation to stray from what they do best. A disciplined approach is necessary to ensure that your long-term interests are held above the allure of short-term profits.
Investment research is our business. Evaluating investment managers is an ongoing process at XPYRIA. We evaluate managers both quantitatively and qualitatively.
Qualitative screening is also an essential part of our evaluation process. When reviewing managers, personal contact is a must. Portfolio management is as much art as it is science. Our investment professionals conduct over 200 manager interviews annually. Extensive interviews of portfolio managers are conducted both in our offices and in the manager headquarters. Our qualitative analysis focuses on a manager’s experience and tenure, shareholder orientation, discipline, passion for investing, and competitive advantage. During visits to manager offices, we interview their professional and administrative staff, review data processing capabilities, and other investment-related activities.
Our Keys To Investment Success
- Develop a thoughtful, written plan.
- Remain focused on the future, not the past.
- Be humble and keep an open mind.
- Be persistent in and remain committed to the arduous process of investment research.
- Patience is a virtue and a requirement of success.
- Ignore the impulses of greed and fear. Buy low and sell high not the other way around.
- Losing less should always take precedence over making more.
- Keep investment costs in check.
- Understand all facets of investment risk and work to minimize all that apply to your circumstance.