An OCIO is an investment adviser that provides outsourced investment management services to clients that do not have the time, budget or skillset necessary to successfully develop their own internal investment function. An OCIO allows an organization with a more traditional finance and accounting group to effectively add a complementary, outsourced investment staff to their team.

Traditional investment advisers provide investment recommendations and typically assist with certain portfolio management and reporting functions.

OCIOs have a deeper engagement with clients, assuming responsibility for many investment activities previously performed by internal staff — and thus serving as an extension of the client’s own organization. This often includes some level of discretion to make investment decisions on behalf of the client.

Outsourcing an organization’s investment management function can:

• Free up internal resources to focus on other high-priority initiatives
• Provide efficiencies in the cost, oversight and decision-making associated with managing institutional assets
• Leverage the OCIO’s investment expertise, research tools and operational capabilities
• Enhance investment governance while offloading certain fiduciary responsibilities

As a boutique OCIO that exclusively serves organizations with a faith-based mission, GSIS seeks to build trusted relationships with like-minded clients and deliver a dynamic investment program that aligns with Christian values.

To accomplish this, GSIS follows a client-centric approach that considers both the investment and ministry needs of every organization it serves. This dual focus allows GSIS to build a custom asset allocation strategy that is supportive of each client’s overarching mission. Off-the-shelf portfolios are never utilized.

Everyone within GSIS brings a Christian worldview to client relationship management. All interactions with GSIS personnel are rooted in shared values and passionate support of the Kingdom work each client is doing.

Investments utilized within GSIS client accounts will be managed in alignment with GuideStone’s Christian values screen, which is as follows:

In accordance with GuideStone’s Christian values, GuideStone and its affiliates may not invest in any company that is publicly recognized, as determined by GuideStone, for offering products or services that are incompatible with the moral and ethical posture of GuideStone, including those involving abortion, sexual immorality, alcohol, tobacco and gambling.

GuideStone Funds will consistently apply the screen. For alternative investments (if utilized), a side letter agreement will be instituted where possible.³

The typical OCIO charges a fee calculated using the amount of assets within the account. In most instances, this fee is quoted at an annual rate but charged quarterly to the account.

The services offered under this fee typically include some or all of the following:

• Consulting on the organization’s Investment Policy Statement
• Asset allocation, monitoring and review of both traditional and alternative investments
• Completion and execution of investment-related documentation
• Delivery of accounting and performance reports
• Account updates to staff and governance bodies (e.g., Boards of Trustees, Investment Committees, etc.)

When compared to the direct and indirect costs of performing each of these functions themselves, organizations can potentially save by outsourcing this work to an experienced OCIO with a robust suite of service offerings.