The outsourced chief investment officer (OCIO) industry is growing faster than many expected, with assets projected to approach $6 trillion by 2030. In this episode of Market Pulse, Grant Johnsey sits down with Kate McCabe, Head of OCIO and Commercial Strategy at Northern Trust, to discuss findings from Northern Trust’s latest Asset Owner Peer Study.

Together, they explore how OCIOs are increasing allocations to private markets, managing liquidity challenges, leveraging AI to improve operational efficiency, and navigating growing demands around data, technology and scale. They also discuss what asset owners should be watching as the OCIO landscape continues to evolve and where service providers can help support future growth.

Important Disclosures

The audio podcast is being provided for informational and educational purposes only and is not meant to be taken as investment advice or a recommendation of any specific investment product or strategy. The information does not take your financial situation, investment objective(s), or risk tolerance into consideration. Listeners, including professionals, should under no circumstances rely upon this information as a substitute for their own research or for obtaining specific legal, investment, accounting or tax advice from their own counsel.

Non‑U.S. Small Cap Equities

Non‑U.S. small cap equities may provide diversification and growth potential but carry elevated risks. These include currency volatility (e.g., U.S. dollar strength reducing returns), higher volatility, and lower liquidity. These securities are more sensitive to local economic, political, and regulatory conditions and may underperform in certain market cycles. They may include lower-quality or unprofitable issuers and are more exposed to trade policy and geopolitical developments.

Alternative Investments

Alternative investments are not suitable for all investors. Hedge funds use leverage, derivatives, and short selling, which can amplify losses. These investments are typically illiquid, lack regular pricing transparency, and charge high fees that may reduce returns. Interests are not readily transferable, and a secondary market may not exist. Investors should also consider tax complexity and reduced regulatory oversight compared to mutual funds.