Mercier LLC, New York, retained its position as the largest manager of OCIO managed assets in the world with full / partial discretion for institutions, up 40.9% to $ 367 billion in the year closed on March 31. Goldman Sachs Group rose from seventh to second place with assets of $ 207.7 billion, an increase of 31.6% in the fiscal year ended March 31.
In 2022, the first place of PI ‘The ranking of OCIO managers could be filled by a new manager if the merger between Aon PLC and Willis Towers Watson PLC goes through.
Aon managed $ 202.8 billion and Willis Towers Watson managed $ 167.7 billion of OCIO assets worldwide managed with full / partial discretion for a total of $ 370.5 billion as of March 31, exceeding the Mercer’s total. Aon fell to third place this year despite growing 17.8% in assets under management. Willis Towers Watson placed sixth, dropping two places.
The London-based companies have announced plans to unite in March 2020 in a $ 30 billion deal for a total share value of $ 80 billion. The U.S. Department of Justice filed a lawsuit to block the deal earlier this month over concerns about stifling competition.
The Vanguard Group Inc., Malvern, Pa., Had its best year for OCIO strategies in calendar year 2020, despite a difficult and slow search and hire environment between March and June, said Christopher B. Philips, director and head of Vanguard Institutional Advisory Services, in an interview.
“It was fruitless. Nobody did anything during that time, but since the end of June of last year the momentum for OCIO strategies has been strong,” said Mr. Philips, adding “we have integrated a lot of new clients, some of whom come to Vanguard from other OCIO managers. ” He said the growth was fairly consistent across defined benefit plans, endowments and foundations.
Vanguard’s OCIO assets under management managed for global institutions with full / partial discretion totaled $ 61.9 billion in the fiscal year ended March 31, up 40.6% year-over-year previous.
Among the winners of the OCIO manager in P&I ranking of 59 companies has been Discretionary Management Services LLC, Merriam, Kan., Which recorded the highest growth of 409.1% to $ 1.5 billion in global assets managed with full / partial discretion in the year ended Dec. 31.
The high growth rate is attributable to the addition by the Company of a major new client for liability-based portfolio management. Adam J. Strumpf, senior consultant, declined to name the client in an email.
Hirtle Callaghan & Co., West Conshohocken, Pa., Saw the largest drop – 20.9% to $ 10.6 billion – in global institutional assets under management.
The drop is the result of the company’s reclassification of some assets as non-institutional and the loss of a major client who reverted to in-house portfolio management, said a spokesperson who declined to name the client .
As in previous years, the US OCIO market remains the most important for managers, with 66.1% of global institutional assets managed with full / partial discretion coming from US clients as of March 31, a slight decrease from 67. 5% on the same date. one year earlier.
Assets under full / partial discretion for U.S. institutional clients increased 20.1% to $ 1.63 trillion for the year ended March 31 and 87.2% over the five-year period.