Outsourced CIO Services for High-Net Worth Families and Family Offices

November 2022

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Ultra-high-net-worth individuals and families typically have complex financial situations, and their portfolios often include exposure to a wide variety of investment strategies and accounts. Accordingly, it can take time and expertise to build and maintain a central investment strategy and coordinate the many moving parts across areas including goal-setting, investment due diligence, and portfolio optimization.
 
Because of the demands on their time, many families and family offices turn to experienced advisors to help quarterback their investment approach. This can include bringing advanced knowledge to properly pursue and monitor private markets investment opportunities and coordinating with other advisors to invest in a more tax-efficient manner.
 
BDO Wealth Advisors’ outsourced chief investment officer (OCIO) services are well-suited for wealthy families’ complex planning and investing needs. Our team’s consultative approach, which is delivered through a fee-for-service model, helps to align interests with clients while providing them with comfort that a trusted expert is looking out for their multifaceted interests.
 

What are BDOWA’s OCIO services?

As independent consultants, BDO Wealth Advisors’ OCIO professionals provide our clients with investment guidance and support across their entire portfolio of investments, accounts, and asset managers. Our OCIO services can be tailored to each family’s specific needs. The services we provide can include the following:
  • Evaluate and provide guidance on complex investment strategies. This includes performing due diligence on specific private equity, real estate, and other alternative investment opportunities. These more sophisticated and complex investments require a deeper understanding of things like capital commitments and the schedule for subsequent investments over a period of years.
  • Aggregate investment exposures across all accounts and monitor allocations among a group of diverse investment managers. This provides a holistic, comprehensive view of a client’s investment activities and risk exposures. It also can help to identify any gaps or overlaps in exposure among various managers and investment accounts.
  • Prepare monthly consolidated reports to identify high-level and granular exposures and investment concentrations.
  • Review investment objectives, investment policy statements, performance of holdings individually and collectively, and fees for each investment manager. This comprehensive view enables us to assess whether the managers are staying consistent with the client’s overall goals and how closely they adhere to investment policy guidelines.
  • Optimize asset allocation and asset location efficiency, seeking to reduce overlap and costs.
  • Conduct stress tests to identify and assess any inherent risks in a client’s overall portfolio.
 

Approach rooted in understanding our clients’ goals and wishes

The very nature of coordinating and executing a family office approach to investing calls for a high level of expertise, familiarity with the client’s objectives and risk tolerance, and impartiality to assure that clients’ interests are front and center at all times. Trust is always paramount.
 
Our deep understanding of complex investment opportunities—including fundamental and quantitative investment strategies in public equities and fixed income—is bolstered by our extensive experience in private equity, private credit, and real estate. We combine our knowledge of public and private markets with our awareness of clients’ cash flow needs, enabling us to provide insightful advice that can guide decision-making.
 
To augment the collective skills of our team of OCIO professionals, we are able to tap into external resources to address the critical aspects of investing in a particular industry and to capitalize on opportunities regarding liquidity, taxation, deal structures, all while respecting our client’s overall objectives. Our team often works with clients’ other advisors to ensure all their needs—such as tax planning and concierge services—are being met according to their wishes.
 
For more information on BDOWA’s OCIO services, please contact your BDO Wealth Advisor.