Six new OCIOs began contributing to the AlphaNasdaq OCIO Index in the fourth quarter, further solidifying the index as the investment industry standard for providing transparency and benchmarking in the OCIO industry. The new firms contributing OCIO data to the index are JPMorgan, Northern Trust, Edgehill, Wespath, Silvercrest and MEMCO.
The AlphaNasdaq OCIO indices, launched in early 2020, are based on anonymized account-level return streams, asset allocation and metadata reported directly by OCIO firms. The AlphaNasdaq OCIO indices use this anonymously reported data to construct a family of indices that represent the broad OCIO market, along with variations of the OCIO market to more appropriately reflect the nuances across subcategories, such as plan type and risk profile.
The indices capture returns and asset allocation from more than 900+ institutions representing hundreds of billions in assets. The fourth quarter OCIO performance results are attached.
“We’ve witnessed a rapidly growing market without consistent standards by which participants are measured,” said Jed Laskowitz, Global Head of JP Morgan Asset Management Solutions. “Alpha Capital’s indices are an independent data source that provides additional transparency on OCIO performance and helps us validate our own competitive positioning.”
“We’re thrilled to see the investment industry continue to embrace the indices, giving asset owners an independent and authoritative way to judge the value-add from their OCIO providers,” said eVestment Global Head of Insights John Molesphini. eVestment worked with Alpha Capital Management and parent company Nasdaq on creating the indices. “Providing this information fits our overall mission of bringing transparency and in-depth data to the investment community.”
Alpha Capital Management founder Brad Alford noted a couple of interesting points in the 4Q data:
- The Broad Index performed well +13.24%
- While the Pension Fund Index has a strong year +14.75%
- Surprisingly, the Endowment & Foundation Index struggled to keep up +12.60%
“Since our launch last year, we’ve seen four to five new OCIOs providing data each quarter, making the indices more and more reliable and relevant,” said Alford. “The pace at which the industry has embraced the indices has exceeded our expectations and speaks to the hunger for this information.”
For more information about the AlphaNasdaq OCIO Index, please click here. The 4Q AlphaNasdaq OCIO data is attached and can be accessed here. Outsourced Chief Investment Officers (OCIOs) are third-party service providers that serve as chief investment officers for institutional investors. They assume the legal and fiduciary responsibilities of a Chief Investment Officer but provide the services externally.
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