Does your organization need to consider an outsourced solution for investment management?

These are questions to consider:
1. Does your organizational structure provide for the quick reaction time needed to respond to the increased volatility in financial markets? Are you poised to take advantage of tactical opportunities, or do you need to wait until the next quarterly meeting to make any changes or convene a conference call and hope for a quorum?

2. Do you have a CIO who focuses full-time on the management of your organization’s assets? Are the CIO and staff adequately equipped to understand the increased complexity of investments? Can they perform timely due diligence to uncover the best investment opportunities and vehicles? How do they source new managers and keep abreast of industry developments?

3. Is your investment portfolio performance meeting or exceeding the financial needs of your organization? Do your investment managers rank among the top tier of the most successful managers in the world, consistently outperforming their benchmarks and peer groups? If not, would you like to have access to these managers? Do you ever get emotionally attached to managers?

4. How reasonable is the total cost of your investment management structure, including your staff and managers? Do you even know what the total cost is? When was the last time you compared costs against the competitive landscape? Are you confident that your structure offers the best value proposition? Would you like to benefit from economies of scale by being part of the negotiating power of a larger pool of assets?

5. Would you be more comfortable with an extra layer of fiduciary protection between your directors and potential liability? Is your investment committee fully engaged in the oversight of your assets? Does their individual interest and expertise in specific areas prevent them from seeing the bigger picture or reaching consensus?