CORRECTING and REPLACING NEPC Survey Finds Institutions Want More OCIO Services But Gaps Exist

BOSTON–(BUSINESS WIRE)–First paragraph, first sentence of release, embedded hyperlinks updated.

The updated release reads:


NEPC, a leading research-driven investment consultant with $1.5 trillion in assets under advisement, today published its 2022 Governance Survey, which examines how institutions like pensions, endowments and foundations, and healthcare organizations are making strategic investment decisions and engaging with investment consultants to preserve and grow their capital across different asset classes and market cycles.

This year’s survey showcases data from 247 respondents, 47% of which are senior executives within their organization, while 28% serve on their organization’s board or investment committee.

The data across all respondents show a desire for more OCIO services from investment consultants. Currently, 12% of respondents say their most trusted advisor handles everything like an OCIO. 17% of respondents expect their most trusted advisors to perform the role of investment manager that handles everything like an OCIO in the next 5-7 years.

However, the new report also showcases potential gaps in the OCIO market. When comparing NEPC’s 2018 Governance Survey to 2022, the data shows that expectations haven’t materialized. In 2018, respondents believed the share of trusted advisors acting as an OCIO would increase to 15% by 2023. The general survey results mask a decided shift toward OCIO for certain market segments, including endowments, foundations, healthcare, and defined contribution relative to 2018, and likely more migration in the years ahead.

“As investment programs have grown over the past several years, we’ve also seen firsthand the increased desire and need for ways to streamline management and operational functions,” said Steve Charlton, Partner and Head of Client Solutions. “There are often good reasons to maintain trusted advisory relationships, which has slowed the overall progression to OCIO. Some clients look to maintain decision-making responsibility or hand off only portions of the governance process, whereas others have decided to move entirely to OCIO. We believe advisory and OCIO can co-exist within our firm and intend to provide the best services consistent with our clients’ objectives.”

Beyond OCIO relationships, the data also helps show how institutions are remaining committed to their ongoing diversity, equity, and inclusion (DEI) investment goals even amid a tough economic landscape. While data shows that more than half of respondents expect an economic recession and 67% are concerned about rising interest rates, the survey also shows:

80% percent of all respondents said it is important to incorporate DEI in their investment program, with 18% saying it is extremely important.

Healthcare organizations were more likely to believe that incorporating DEI in their investment programs is a top priority, with 29% of these respondents saying it is extremely important.

Alternatively, pensions and insurance organizations were slightly less likely to recognize the importance of incorporating DEI into their investment programs, as 23% of these respondents stated DEI was not an important piece of their program.

For more information about NEPC, click here, and about NEPC’s OCIO Services, here. To download the full results of NEPC’s 2022 Governance Survey, click here.


NEPC, LLC, is one of the country’s leading investment consulting firms, servicing more than 400 retainer clients with $1.5 trillion in assets with $301.2 billion in alternative assets. Combining a proprietary research team dedicated to the long-term challenges facing investors with our unique client-centric model, NEPC builds forward-looking investment portfolios for institutional investors and ultra-high-net worth individuals. To learn more about NEPC, visit


Laura Nascimento