Seven OCIOs added to AlphaNasdaq OCIO Index
Seven new OCIOs began contributing to the AlphaNasdaq OCIO Index in the first quarter of 2021, further solidifying the index as the investment industry standard for providing transparency and benchmarking in the OCIO industry.
The new firms contributing OCIO data to the index include Mellon Investor Solutions and Brown Advisory. The AlphaNasdaq OCIO Index now has 39 leading OCIO firms participating.
The AlphaNasdaq OCIO indices, launched in early 2020, are based on anonymised account-level return streams, asset allocation and metadata reported directly by OCIO firms. The AlphaNasdaq OCIO indices use this anonymously reported data to construct a family of indices that represent the broad OCIO market along with variations of the OCIO market to more appropriately reflect the nuances across sub-categories, such as plan type and risk profile.
The indices capture returns and asset allocation from more than 1,000+ institutions representing hundreds of billions in assets.
Alpha Capital Management founder Brad Alford noted a couple of interesting points in the 1Q data:
- Endowment and Foundation Index came roaring back with a fantastic trailing 1-year return.
- Pension Fund Index got hurt given their heavy reliance on fixed income.
- The Aggressive Asset Allocation Index topped the list +46.3 per cent for trailing 1-year return
The growing number of contributors to the AlphaNasdaq OCIO Index highlight the importance of the data the indices provide to the institutional investment business.
“The lack of performance transparency is a key impediment to asset owners’ ability to evaluate and make informed decisions about OCIO providers,” says Moustapha Abounadi, Head of Business Strategy for BNY Mellon Investor Solutions. “The AlphaNasdaq OCIO indices represent an important step in dealing with this issue. We are therefore excited to contribute to this important initiative.”
Brigid Peterson, Head of Endowments & Foundations for Brown Advisory adds: “Historically, OCIO providers and institutions have struggled to evaluate peer performance on an independent and consistent basis. The contributory model of Alpha Capital’s indices provide relevant points of comparison for institutions across OCIO providers. We see this as good news for the OCIO market overall and are happy to participate.”
“Since our launch last year, seven is the largest number contributing OCIOs we’ve added to the indices in a single quarter, which speaks to the momentum this solution has in our business and the hunger for this information,” says Alford.
“We’re thrilled to see the investment industry continue to embrace the indices, giving asset owners an independent and authoritative way to judge the value-add from their OCIO providers,” says eVestment Global Head of Insights John Molesphini. eVestment worked with Alpha Capital Management and parent company Nasdaq on creating the indices. “Providing this information fits our overall mission of bringing transparency and in-depth data to the investment community.”