Outsourcing managers currently oversee about $2 trillion in assets, a blistering increase from $599 billion in 2011. The 10 largest managers run 67% of all outsourced chief investment officer assets under management. Mercer is the largest manager with more than $260.5 billion, up from $73.9 billion in 2013.
Retirement plans comprise 50% of large U.S. clients, while endowments and foundations represent 38%. The remaining 12% varies significantly, from health-care organizations and rabbi trusts to nuclear decommissioning trusts and other funds. The average larger U.S. client has about $580 million in assets.
State Street Global Advisors had the largest average client size, at more than $4 billion. Defined benefit plans represent 81.5% of SSGA’s U.S. clients and are responsible for about half of the OCIO assets it manages.
For more, check out P&I’s latest special report on CIO outsourcing.