A surge in large-scale outsourced chief investment officer (OCIO) mandates is reshaping the UK fiduciary management landscape, with investment advisory firm Isio reporting a 21% increase in assets under management across the sector between 2023 and 2024.
The growth has been driven by multi-billion pound OCIO arrangements, as schemes with more than £1 billion in assets look for tailored governance models amid rising complexity, regulation and operational strain, according to the UK-based pensions and investment advisory firm Isio.
While overall mandate growth has been “subdued”, partly due to schemes exiting post-insurance transaction, the scale of OCIO deals has expanded asset volumes in the market.“Previously seen as a solution suited predominately to the largest and most sophisticated schemes in the market, OCIO is now attracting interest from a broader group of pension schemes seeking bespoke solutions,” Isio noted.
Reimagining asset management for 2025
Unlike traditional fiduciary management models, OCIO allows for personnel and integrated servicing tailored to scheme-specific needs, according to the data provider. Trustees are increasingly drawn to the flexibility of the model as they seek to future-proof their governance structures against regulatory and market pressures.
OCIO adds value in areas such as cashflow management and de-risking frameworks—particularly as schemes mature. Access to economies of scale, broader investment expertise and operational support are also proving decisive as trustees look for more efficient execution without surrendering control.
Paula Champion, head of fiduciary management oversight at Isio, commented: “OCIO adoption is one of the most significant trends in fiduciary management. We are seeing a clear shift in how large schemes are approaching governance, with trustees increasingly recognising the value of a solution that combines strategic oversight with dedicated, responsive execution.
The appeal of OCIO lies in its aim to bring together the best of both worlds, access to institutional-scale capabilities and deep investment expertise, without losing the flexibility and tailoring that schemes require. For many schemes, it’s an opportunity to enhance governance frameworks, streamline decision making and reduce the operational burden on internal teams.
As regulation becomes more complex and internal resources continue to stretch, OCIO uptake is likely to accelerate further. The market is evolving and OCIO is now playing a central role in helping schemes adapt, maintain control and deliver better outcomes for members.”
