18 | November 26, 2018 SPECIAL REPORT Pensions & Investments INVESTMENT CONSULTANTS

Consolidation, Michael A. Marcotte OCIO aid trends

CONTINUED FROM PAGE 1 $475 million, are being done so one consultant can expand its capabili- “In the long run, the M&A game ties within a specif c asset class. In is probably going to continue,” said the case of Mercer, it was alterna- Andrew H. Junkin, president of tives; for Aon, it was real estate. Wilshire Consulting. “I’m not sure “Clients are seeking high-quali- that’s so great for the industry.” ty advice on alternatives,” said Consolidation may result in more Richard Nuzum, New York-based homogenization, but the consulting president of Mercer’s global business is best when fully custom- wealth business, in a telephone in- ized to each client, he said. terview. “Alternatives are attractive “Is this the best thing for the cli- but also risky.” ent or the best thing for the provid- Mr. Nuzum pointed out that al- er to build their own business? though alternatives are becoming Sometimes the answer is not al- increasingly attractive in a low-re- ways clear to me,” Mr. Junkin added. turn environment, they require ex- Data from Pensions & Invest- pert advice. “There’s no passive in- ments show the overall U.S. institu- vesting with alternatives,” he said. tional tax-exempt AUA was f at for “You can’t just stick this money in the year — $20.76 trillion as of June an alternatives index fund.” 30, up only 1.3% from a year earlier. Wilshire’s Mr. Junkin said some- Investment consultants speaking thing similar about investor appe- with P&I agreed that consolidation tite for alternatives in a separate will continue. However, they had phone interview. “An ongoing push varied explanations as to why. into alternatives has been going on “There are multiple inf uencers for more than a decade,” he said. that are causing the consolidation,” “Consultant f rms are trying to said Steve Carlson, head of invest- solve the dilemma for achieving re- ment, Americas, at Willis Towers turns in a low-return environment.” Watson PLC, in Chicago. Some of the primary inf uences leading to Transferring ownership further consolidation include con- Consolidation is also occurring TALKING ’BOUT MY GENERATION: Stephen Cummings said mature owners are a big reason for the increase in consolidation. sulting f rms trying to maximize due to senior leaders looking to re- their margins; owners of f rms es- tire. A recent example is Cambridge vestment Consulting Inc. “The in- hard to do if you want it done in outright acquisition is a much tablished in the 1980s and ‘90s Associates LLC co-founder Hunter dustry’s getting mature.” short order,” said Michael P. Man- faster process. looking to retire and cash out; f rms Lewis, who said on Nov. 6 that he These generational issues can ning, managing partner at NEPC “It takes time to do a buyout,” looking to expand their offerings was selling most of his stake in the trigger internal discussions within LLC in Boston. “At that point, a said Gregory Allen, CEO and chief and capabilities and small- to mid- f rm after Cambridge in May sold consulting f rms about whether transaction is often the only real research off cer at Callan LLC, San sized-consulting f rms looking to be 20% of the company to one its cli- they should transfer ownership to option.” Francisco. “If you can get big faster, acquired to gain scale. ents, Brussels-based Sof na SA. the next generation or to a larger Both Mr. Manning said one rea- it’s better than getting big slower.” Mr. Carlson said some deals, “A number of consulting organi- organization. Both options have son why this ownership transfer Mr. Allen pointed to Callan as an such as Mercer’s acquisition of zations have the generational issue their own inherent advantages and tends to result in acquisitions is example. When founder Ed Callan Summit and Aon’s January acquisi- to grapple with,” said Stephen challenges. because internal buyouts tend to began transferring ownership of tion of The Townsend Group for Cummings, CEO of Aon Hewitt In- “Generational equity transfer is be slow and drawn out, while an the f rm in the 1990s, it was a long process. Since employees didn’t have enough cash to buy him out, they had to agree forgo prof t distri- Investment consultants at a glance Growth of investment consultants’ butions and channel those dollars into periodic payments for Mr. Cal- Assets are in billions as of June 30. institutional advisory assets lan’s ownership shares. Assets are in trillions as of June 30. “So, if a company approaches Total assets under Number of money manager Total assets U.S. institutional tax-exempt assets you and says, ‘We’ll retain as many advisement searches people as we can, and we’ll pay $38,368.8 10,434 cash,’ that’s a good deal for a $37.95 $37.92 founder, especially one with a high Change from 2017: Change from 2017: $35.70 $36.07 percentage of ownership,” Mr. Al- +0.1% +5.0% $34.23 len noted. $32.14 The Callan CEO added that an Institutional assets Assets under management acquisition is a shortcut to trans- $37,918.8 $887.7 ferring ownership, and also offers Change from 2017: Change from 2017: more career opportunities for em- ployees who are now part of a -0.1% +12.2% larger f rm. Other deals, like the merger be- U.S. institutional tax-exempt Outsourced CIO assets $20.49 $20.76 assets tween Cafaro Greenleaf and Carroll $19.02 $18.36 $18.87 $1,237.1 $17.57 Consultants Ltd., are being done so $20,759.1 Change from 2017: the organizations can partner with Change from 2017: +36.3% each other to more seamlessly +1.3% serve clients. Historical data may include retroactive updates. “Another reason why we’re see- Number of professional ing this consolidation is because consultants we’re seeing a demand from asset clients for a wider breadth of ser- 7,400 vices,” said Mr. Manning from Change from 2017: NEPC. +1.9% 2013 2014 2015 2016 2017 2018 SEE CONSOLIDATION ON PAGE 24 S&PDJI can ESG my 500

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18pi0341.pdf RunDate:10/29/18 Full Page Color: 4/C 20 | November 26, 2018 SPECIAL REPORT Pensions & Investments INVESTMENT CONSULTANTS

The largest investment consultants Ranked by worldwide institutional assets under advisement, in millions, as of June 30.

Rank Consultant Assets Rank Consultant Assets Rank Consultant Assets

1 Mercer $11,632,324 33 Portfolio Evaluations $74,897 65 MESA Investment Consulting $13,703

2 Aon $3,118,470 34 Fiduciary Investment Advisors $74,000 66 SECOR Asset Mgmt. $12,964

3 Russell Investments $2,500,000 35 DiMeo Schneider $73,500 67 Atlanta Consulting Group $12,000

4 Cambridge Associates $2,414,178 36 Cliffwater $67,181 68 Beneft Financial Services $11,185

5 Callan $2,330,185 37 Fund Evaluation Group $66,231 69 Canterbury Consulting $10,546

6 RVK $2,254,431 38 Gallagher Fiduciary $64,936 70 Asset Advisors $10,000

7 Willis Towers Watson Invest. $2,200,000 39 Ellwood Associates $63,199 71 Compass Financial $9,955

8 Pension Consulting Alliance $1,374,740 40 TorreyCove Capital $60,289 72 Arnerich Massena $9,676

9 Meketa Investment Group $1,118,828 41 River & Mercantile Solutions $57,515 73 Quan-Vest Consultants $8,770

10 NEPC $1,013,462 42 Bellwether Consulting $55,174 74 Fourth Street Performance $8,700

11 Wilshire Associates $1,006,621 43 Prime Buchholz $50,641 75 Francis Investment Counsel $8,238

12 Pavilion $714,956 44 Investment Performance $44,553 76 PlanPilot $8,071

13 Rocaton Investment Advisors $579,341 45 Institutional Investment Consulting $44,110 77 Bolton Partners $5,771

14 PPCmetrics $460,000 46 Cook Street Consulting $44,036 78 Sellwood Consulting $4,952

15 Verus $442,568 47 Milliman $42,445 79 Conrad Siegel $4,937

16 Nomura Securities $423,727 48 Colonial Consulting $38,700 80 Cornerstone Advisors $4,162

17 Hamilton Lane $414,796 49 Concord Advisory Group $31,569 81 Hamilton $4,134

18 Segal Marco Advisors $331,371 50 Newport Group $30,643 82 Capital Research + Consulting $4,084

19 Morgan Stanley/Graystone $301,175 51 Hyas Group $28,000 83 Alpha Investment Consulting $3,300

20 CAPTRUST Financial $272,294 52 Angeles Investment Advisors $27,432 84 Cafaro Greenleaf $2,700

21 StepStone Group $204,704 53 Gavion $27,113 85 Berla Investment Consulting $2,325

22 BofA Merrill Lynch $187,676 54 Highland Associates $25,839 86 HM Capital $2,265

23 Marquette Associates $169,157 55 DeMarche Associates $23,968 87 Strategic Capital Allocation $1,900

24 Summit Strategies Group $158,250 56 Portfolio Advisors $23,482 88 Johnson Wealth $1,661

25 Cardinal Investment Advisors $141,460 57 Multnomah Group $19,813 89 Comperio Retirement $1,625

26 NFP Retirement $136,000 58 FiduciaryVest $19,559 90 Morrison Fiduciary $1,251

27 UBS Institutional Consulting 1 $131,000 59 CBIZ Retirement/Investment $17,995 91 Guidance Point Retirement $931

28 LCG Associates $94,555 60 Dahab Associates $14,900 92 Beneft & Investment Consulting $65

29 Alan Biller $94,002 61 George & Bell Consulting $14,805 TOTAL $37,918,762 30 SageView Advisory $91,000 62 MJM401k $14,188 1 As of Dec. 31, 2017 31 Cammack Retirement $86,162 63 Strategic Capital Investment $14,161

32 AndCo Consulting $82,863 64 Highland Consulting $13,721

The largest investment consultants by The largest investment consultants by The largest investment total worldwide advisory assets U.S. inst’l, tax-exempt advisory assets consultants by managed Assets are in millions as of June 30. Assets are in millions as of June 30. assets Assets in funds of funds or other Total Retainer Non-retainer Total DB DC discretionary money management products, Rank Consultant assets clients clients Rank Consultant assets plans plans in millions, as of June 30. 1 Mercer $11,632,324 $9,011,034 $2,621,290 1 Mercer $2,551,242 $913,554 $879,294

2 Aon $3,118,470 $2,990,158 $128,312 2 Aon $2,478,802 Rank Consultant Assets

3 Cambridge Associates $2,578,027 $2,578,027 3 Callan $2,330,185 $1,530,334 $318,357 1 Russell Investments $290,000 2 Mercer $241,906 4 Russell Investments $2,500,000 4 RVK $2,084,594 $1,393,972 $633,391 3 Morgan Stanley/Graystone $57,339 5 Callan $2,330,185 $1,518,034 $812,151 5 Pension Consulting Alliance $1,374,740 $1,292,052 $82,688 4 Hamilton Lane $56,684 $2,254,431 $978,860 $1,275,571 $1,118,828 6 RVK 6 Meketa Investment Group 5 StepStone Group $46,216 7 Willis Towers Watson Invest. $2,200,000 7 NEPC $1,009,550 $640,671 $202,004 6 River & Mercantile Solutions $45,100

8 Pension Consulting Alliance $1,374,740 $1,165,940 $208,800 8 Wilshire Associates $1,005,721 $904,246 $39,411 7 Aon $36,218

9 Meketa Investment Group $1,118,828 $638,627 $480,201 9 Cambridge Associates $976,849 8 SECOR Asset Mgmt. $26,614 9 Callan $18,043 10 NEPC $1,021,011 $1,021,011 10 Russell Investments $804,000 10 Willis Towers Watson Invest. $14,209 11 Wilshire Associates $1,006,621 $1,006,621 11 Willis Towers Watson Invest. $630,801 $362,813 $252,616 11 Portfolio Advisors $12,003 12 Pavilion $716,030 $572,154 $143,876 12 Rocaton Investment Adv. $536,007 $127,378 $206,738 12 NFP Retirement $7,000 13 Rocaton Investment Adv. $579,341 $579,341 13 Verus $440,714 $333,113 $20,085 13 Segal Marco Advisors $6,466 14 Segal Marco Advisors $551,534 $551,534 14 Segal Marco Advisors $331,371 $199,372 $105,514 14 Highland Associates $6,302

15 PPCmetrics $460,000 $310,000 $150,000 15 Pavilion $301,183 $133,368 $92,058 15 FiduciaryVest $4,182 $2,765 16 Verus $442,568 $442,568 16 Hamilton Lane $209,058 $206,541 16 Cornerstone Advisors 17 CBIZ Retirement/Investment $2,296 17 Nomura Securities $423,727 $377,044 $46,683 17 Marquette Associates $169,157 $77,919 $36,730 18 UBS Institutional Consulting1 $2,100 18 Hamilton Lane $414,796 $414,796 18 Summit Strategies Group $158,250 19 Newport Group $1,938 19 Morgan Stanley/Graystone $301,175 $301,175 19 Morgan Stanley/Graystone $143,000 $48,327 $77,232 20 Fiduciary Invest. Advisors $1,800

20 CAPTRUST Financial $277,870 $277,870 20 NFP Retirement $136,000 $7,401 $31,501 1 As of Dec. 31, 2017. 18pi0371.pdf RunDate:11/12/18 Full Page Color: 4/C 18pi0385.pdf RunDate: 11/26/16 Full Page Spread Color: 4/C Connect with us.

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17pi0374.pdf RunDate10/30/17 Full Page Color: 4/C 22 | November 26, 2018 SPECIAL REPORT Pensions & Investments INVESTMENT CONSULTANTS

ALL ALIKE: Michael A. Rosen Current perception of industry believes consultants need scale to survive big part of consolidation trend because clients now perceive The increased consolidation among ing f rms and have accordingly put a lot of them as offering traditional non-discretionary investment pressure on fees.” the same things. consultants is the result of the industry being If an institutional investor perceives that commoditized, said Michael A. Rosen, chief the advice they get from one traditional investment off cer of Angeles Investment consultant is no different from another, “then Advisors LLC. why pay anyone any differently and just The managing partner of the Santa simply put it out to bid to the lowest cost Monica, Calif.-based outsourced chief provider?” Mr. Rosen asked. investment off cer provider said in a tele- This fee compression, Mr. Rosen ex- phone interview that investors are perceiving plained, leads to a business model where “little distinction among investment consult- f rms must have scale in order to compete, since that’s how marginal costs and fees can be reduced. “It’s a race to the bottom,” he said. Although some traditional consultants have argued that the value they bring to their clients are intangibles such as relationships and customized services, Mr. Rosen isn’t buying it. “If it were true, we’d be seeing higher fees, and an acknowledg- ment of the greater value the industry is providing,” he coun- tered. “And we’re seeing just the opposite.” Mr. Rosen stipulated that he’s not saying the role of the consul- tant is not important. But rather “that the value that is being delivered is pretty marginal, based on fees being reduced.” He added: “If the service that were being provided were per- ceived as adding a lot of value, you’d see the pricing for that service go up. But we’re seeing the opposite. And that’s what’s driving that consolidation.” — JAMES COMTOIS Reprints

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Credit opportunities abound in emerging market debt

Eric Stein Vice President amid headwinds Eaton Vance

he global economy faces risks on three fronts, but Trade tensions with the U.S. have only exacerbated the sit- looking at policies, generally” to see how the reaction has compelling investment opportunities can still be uation. been to the most recent sell-off. Here the signs are encour- T found in emerging market debt. aging. To make matters worse, U.S. foreign policy does not look First, the risks. At Eaton Vance, the team has identified like it will soften around China, as it did around trade part- Stein mentioned interest rate hikes in Turkey and Indonesia, three sets of headwinds: The interest rate environment in ners in North America and Europe. In fact, the opposite and fiscal consolidation in Argentina as examples of “the the U.S., rising oil prices and a slowdown in China. seems true, said Stein, who sees anti-China sentiments on right kind of policy response to this little kind of mini-EM the rise. crisis we have seen over the last two quarters.” While not “So, you have had the Fed, oil and China all being head- all countries have reacted perfectly, and some have done winds,” said Eric Stein, a vice president at Eaton Vance and “U.S. trade policy is coalescing ― both from what I call the better than others, in general, many emerging markets are co-director of global income and portfolio manager in the trade warriors and from national security hawks ― around in a better place than they were a year ago when there was firm’s global income group. “That is part of the reason that anti-China,” he said. This hawkishness has broad support a lot of complacency. you have seen some problems in emerging markets.” in Congress from both parties and from many countries around the world. “I think the U.S. is realizing that we can’t DIAMONDS IN THE ROUGH Of these, China presents the biggest long-term concern for fight all countries at all times from a trade war perspective, Stein. Higher oil prices tend to help commodity-exporting so everything should be focused on China.” Right now, “the Asked about specific opportunities, Stein mentioned Egypt, emerging markets countries, though that has not happened U.S.-China relationship is clearly at a very, very low point,” Serbia and the Dominican Republic as three markets that this cycle. Stein said. “If you ask me what concerns me, even if any- have defied the trend and performed well since the sell-off. thing more than Fed policy, it would be the U.S.-China trade “Usually, if I tell somebody the oil price is up, you would relationship ticking another leg or multiple legs down from “Serbia is a country that we have been investing in for think it would be good for emerging markets,” said Stein. here.” some time,” he said. The Balkan nation until very recently “It has actually been bad for emerging markets, partially received only scant attention from institutional investors in because it is hurting the importers seemingly more than it is With China’s status as the world’s second-largest econo- the West. That is changing. “They are getting more and helping the exporters.” This may reverse in time. Additional- my, and one of the biggest consumers of commodities, this more popular,” Stein said. Serbia “is a good reform story. ly, other issues at work include supply disappointments that does not bode well for financial markets worldwide, espe- We still think it is a very attractive place to invest. Yields have affected the price of oil more than the demand picture. cially for developing economies. But Stein still has reasons have come down a lot, but we still like it.” for optimism. The Federal Reserve tightening policy has clearly been a Egypt offers very high interest rates as a result of devalu- negative for emerging markets, and with a fourth rate hike For one, broad valuations in emerging markets are “com- ing its currency in the past, but the current currency risk expected this year, there may be more pain ahead in the pelling,” he said. This is especially true for many curren- is “more than compensated for” with the high yields local short term. But rate hikes can’t continue indefinitely, and cies. “Real rates in emerging markets versus developed Egyptian bonds offer. The Dominican Republic is somewhat there are indications, said Stein, that the Fed’s view is start- markets” have a pretty wide spread, “so it is making EM similar. “Yields are lower,” said Stein. “We expect the cur- ing to become less hawkish. local rates attractive,” Stein said. What’s true for currencies rency to depreciate a little bit, but not nearly as much as the and rates also holds true for sovereign credit. “EM sover- yields would indicate.” “At some point, six months from now, the Fed may be clos- eign spreads have widened from the beginning of the year.” er to being done than starting” with interest rate hikes, he These “smaller, frontier-ish countries” are examples of plac- said. “If the Fed ever has a dovish message at a meeting ... There is a lot of talk in the market about assets being over- es where investors have been able to earn returns even in you could see a lot of dollar weakness and an EM rally on valued, which may hold true for U.S. equity and credit mar- this difficult EM environment. There may be others. To find the back of that.” kets that saw their last bear market almost a decade ago. them, Stein and his team have a comprehensive approach Emerging markets, by contrast, have witnessed four broad that starts with analyzing individual countries ― developing Where China is concerned, such silver linings are harder sell-offs since the financial crisis: in 2011, in 2013 with the and emerging alike. The political equation is vital and often to identify. “taper tantrum,” in 2015 with the oil price shock and the overlooked. current sell-off in 2018. This latest downturn, sparked by TIGHTENING POLICY IN CHINA SLOWS ECONOMY Fed policy, trade wars and idiosyncratic issues within indi- “I think anyone that invests in emerging markets has to an- vidual countries, has created an entry point “more compel- alyze politics,” he said. Indeed, this goes beyond emerg- “China has had a very big domestic slowdown this year,” ling than many other assets,” according to Stein. ing markets, as the examples of Brexit and Donald Trump’s Stein said. While there is a lot of focus on the tit-for-tat election in 2016 illustrate. “We are investing in the credit exchange of threats and tariffs with the U.S., “to us it is not Supporting this thesis is the micro-picture within individual worthiness of an entity from a sovereign perspective, we entirely the trade war by any stretch,” he said. The Chinese emerging market countries, said Stein — specifically, “what are investing in the level of its interest rates, and we are government has for some time been tightening regulatory countries have done from a policy perspective.” Stein and investing in the valuation of its currency,” Stein said. “All and fiscal policies in an effort to reduce leverage and cap- his team spend a lot of time focused on macroeconom- those are going to be variables that are heavily determined ital outflows, which had the effect of slowing its economy. ic and political analyses of countries, “looking at reforms, based on politics.” ■

www.pionline.com/EatonVance_EM

The views expressed are those of the Strategy’s investment team and are current only through the date stated on the cover of this presentation. sponsored by: These views are subject to change at any time without notice based upon market or other conditions, and Eaton Vance disclaims any responsi- bility to update such views. Different views and opinions may be expressed by others. These views may not be relied upon as investment advice and, because investment decisions are based on many factors, may not be relied upon as an indication of trading intent on behalf of any Eaton Vance strategy. Eaton Vance Management, Two International Place, Boston, MA 02110 800.225.6265 eatonvance.com

This sponsored Investment Insights is published by the P&I Content Solutions Group, a division of Pensions & Investments. The content was not produced by the editors of Pensions & Investments and www.pionline.com and does not represent the views of the publication or its parent company, Crain Communications Inc.

18pi0381.pdf RunDate: 11/26/18 Full Page Color: 4/C 24 | November 26, 2018 SPECIAL REPORT Pensions & Investments INVESTMENT CONSULTANTS

Investment consultants’ average billion the year before. With Investment revenue breakdown GSAM’s acquisition of Rocaton, the Consolidation New York-based asset manager is consultants As of June 30. Data in parentheses are from 2017. set to gain roughly $10 billion in CONTINUED FROM PAGE 18 OCIO assets. offering One OCIO provider said his frm Investment Managing Mr. Manning wasn’t the only Investment made the move from traditional outsourced CIO management funds of funds consultant who shared this view. outsourcing consulting to OCIO because that’s consulting services and/or separate Aon’s Mr. Cummings also noted services 9.3% where he believes the value lies. for institutional accounts that institutional investors are ex- (7.8%) Michael A. Rosen, managing As of June 30. asset owners pecting more from their consul- 1.9% tants. partner and chief investment off- 79.6% (2.4%) “Clients are increasingly looking cer of Angeles Investment Advi- XX (82.4%) to consultants to provide highly- sors LLC, Santa Monica, Calif., Angeles Investment Advisors integrated fexible solutions, so said: “We’re seeing industry con- XXAon their lives are simpler,” said Mr. solidation because traditional con- XXArnerich Massena Cummings. “They don’t have to go sulting frms have been unable to to multiple vendors.” demonstrate suffcient added val- XXAsset Advisors Aon, the second largest invest- ue and/or distinction among them- XXAtlanta Consulting Group ment consulting frm, gained about selves that would lead to differen- XXBofA Merrill Lynch $175.7 billion in AUA through its tiated fees.” acquisition of Townsend. Traditional non-discretionary XXAlan Biller Other Services Other investment consulting is “not the XXCafaro Greenleaf Push for more OCIO business that I want to be in,” Mr. consulting provided to services XXCallan clients money 0.5% Clients’ desire for comprehen- Rosen added. “So, we’ve shifted to sive services is also driving them to being (OCIO).” Angeles Investment XXCambridge Associates 7.1% managers (1.3%) take a closer look at outsourced CIO Advisors oversaw $27.4 billion in (5.9%) 1.6% XXCanterbury Consulting (0.2%) services. client assets as of June 30, down “We’ve been seeing the move to- 6.2% from the year earlier. XXCAPTRUST Financial ward OCIO or delegation,” said Mr. Consultants also noted that a XXCliffwater Carlson at Willis Towers Watson. number of investors moving toward XXColonial Consulting “That in our view is going to con- delegation aren’t necessarily ready Investment consultants’ average tinue to happen.” to completely abdicate all control. XXCompass Financial Mr. Junkin from Wilshire Con- While some clients may be inter- XXConrad Siegel advisory assets by client region sulting explained that the transi- ested in delegation, they may also XXCornerstone Advisors Weighted average, as of June 30. Data in parentheses are from 2017. tion of non-discretionary consult- want to retain veto power and have ing to discretionary is happening some say in how the assets are in- XXDeMarche Associates in part because many investors vested, explained Mr. Nuzum. What XXDiMeo Schneider U.S. Europe U.K. Japan are recognizing that they “don’t they ultimately want, however, is to 63.2% (ex-U.K.) 4.2% 2.7% have the right governance struc- be relieved of the operational bur- XXEllwood Associates (59.2%) 7.7% (4.1%) (6.9%) tures in place to properly manage den to run and maintain an invest- XXFiduciaryVest (6.6%) a portfolio.” ment platform. XXFund Evaluation Group An institutional investor that “It costs a lot of money to build a meets with the investment commit- high-quality OCIO platform,” Mr. XXGallagher Fiduciary tee every month or every other Nuzum said. XXGavion month may not be in the best posi- Aon’s Mr. Cummings said his XXHighland Associates tion to invest opportunistically, Mr. frm has seen “partial delegation” Junkin said. So it makes sense to start to “take off in the U.S.,” though XXHighland Consulting hand control of the investment it has been the norm in the U.K. for XXHyas Group portfolio to an OCIO. Plus, the tradi- years. This includes scenarios in tional non-discretionary consulting which “a client isn’t ready to fully XXInstitutional Investment business is not scalable. embrace an OCIO but might be Consulting Asia Canada Australia/ Latin “I think the push toward OCIO comfortable outsourcing a hedge XX (ex-Japan) New America Investment Performance 4.2% will continue and is really adding fund implementation program or Zealand XXJohnson Wealth 14.3% (3.9%) 0.1% value to the client,” he added. real estate program or a long-dura- (15.9%) 3.6% (0.2%) OCIO assets grew 36.3% to $1.237 tion fxed-income portfolio on a XXLCG Associates (3.2%) trillion as of June 30 from $907.3 fully discretionary basis.” n XXMarquette Associates XXMeketa Investment Group XXMercer Independent investment consultants Consultants XXMilliman Consultants not providing services to/collecting fees from money management frms, as of June 30. providing XXMJM401k services to/ XXMorgan Stanley/Graystone XXAlpha Investment XXCBIZ Retirement/ XXHamilton Lane XXPortfolio Advisors XXMorrison Fiduciary Consulting Investment XX XX collecting fees Highland Associates Portfolio Evaluations XXMultnomah Group XXAndCo Consulting XXColonial Consulting XXHighland Consulting XXPPCmetrics from money XXNEPC XXAngeles Investment XXCompass Financial XXHM Capital XXPrime Buchholz Advisors management XXNewport Group XXComperio Retirement XXHyas Group XXQuan-Vest Consultants XXAon XX firms XX Concord Advisory Group XXInstitutional Investment XXRiver & Mercantile NFP Retirement XXArnerich Massena XXConrad Siegel Consulting Solutions As of June 30. XXPavilion XXAsset Advisors XX XX XX Cook Street Consulting Johnson Wealth Rocaton Investment XXPlanPilot XXAtlanta Consulting Group XXCornerstone Advisors XXLCG Associates Advisors XXBofA Merrill Lynch XX XX XX Prime Buchholz Bellwether Consulting XXDahab Associates XXMarquette Associates Russell Investments XXCallan XXBeneft & Investment XXRVK XXRiver & Mercantile Solutions XXDiMeo Schneider XXMeketa Investment XXDeMarche Associates Consulting Group XXSageView Advisory XXRocaton Investment Advisors XXEllwood Associates XX XXBeneft Financial Investment Performance XXFiduciary Investment XXMESA Investment XXSECOR Asset Mgmt. XXRussell Investments Services Consulting XXMercer Advisors XXSegal Marco Advisors XXSECOR Asset Mgmt. XXBerla Investment XX XXNEPC XXFiduciaryVest Milliman XXSellwood Consulting Consulting XXSegal Marco Advisors XXMJM401k XXPavilion XX XXFourth Street XXStepStone Group Alan Biller XX Performance XXMorgan Stanley/ XXStrategic Capital Sellwood Consulting XXBolton Partners XXStrategic Capital XXFrancis Investment Graystone Investment Allocation XXStrategic Capital Allocation XXCafaro Greenleaf XX Counsel Morrison Fiduciary XXSummit Strategies Group XXUBS Institutional XXStrategic Capital Investment XXCambridge Associates XXFund Evaluation Group XXMultnomah Group Consulting XXTorreyCove Capital XXSummit Strategies Group XXCammack Retirement XX XXGallagher Fiduciary XXNewport Group XXVerus Wilshire Associates XXCanterbury Consulting XXUBS Institutional Consulting XXGavion XXNFP Retirement XXWillis Towers Watson XX XXCAPTRUST Financial XXGeorge & Bell Consulting XXNomura Securities Investment Verus XXCardinal Investment XXGuidance Point XXPension Consulting XXWillis Towers Watson Advisors Retirement Alliance Investment XXHamilton XXPlanPilot XXWilshire Associates DATA LICENSING TERMS AND CONDITIONS

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