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WTW, State Street Begin Contributing to Alpha Nasdaq OCIO Indices

1 June 2022

Two new OCIOs, WTW and State Street, have begun contributing to the Alpha Nasdaq OCIO Indices, further solidifying the indices as the investment industry standard for providing transparency and benchmarking in the OCIO industry. The new firms contributing OCIO data to the Indices bring to 46 the total number of firms sharing data.

“Allowing users to compare OCIO results against similar types of plans with this new client-type data, in addition to the broad comparisons already available, adds significant value and transparency to the OCIO indices,” said Alpha Capital Management founder Brad Alford. “We’re excited to continue to refine and expand the data and insights the Alpha Nasdaq OCIO Indices can provide to our clients.”

Said Tom Kennelly, head of OCIO investment strategy for State Street Global Advisors: “The OCIO market continues to accelerate growth at an impressive pace. The broad interest from a variety of asset owner’s has increased the need for transparency and evaluation of performance among OCIO providers. While outsourced solutions are highly customized, the OCIO Indices provides another lens at which to objectively review performance.”

“It has historically been difficult for asset owners to compare OCIO results on an apples-to-apples basis,” said Nimisha Srivastava, head of investments, North America for WTW. “We are thrilled to contribute to this important tool for consistent, independent and transparent evaluation of OCIO providers. Our thanks to Alpha Capital and Nasdaq for their efforts in driving this initiative forward.”

“The growing number of contributors to the Alpha Nasdaq OCIO Indices highlight the importance of the data the indices provide to the institutional investment business,” said Alpha Capital Management founder Brad Alford.

The Alpha Nasdaq OCIO Indices, launched in September 2019 as a partnership between Alpha Capital Management and Nasdaq, are based on anonymized account-level return streams, asset allocation and metadata reported directly by OCIO firms. The Alpha Nasdaq 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.

New client type indices added

The indices capture returns and asset allocation from more than 1,100 institutions representing hundreds of billions in assets, and has recently expanded its data with four new client type indices. These new client type indices bring additional transparency to the OCIO business by allowing asset owners and consultants to review OCIO results for similar types of plans and investors.

The four new client-type indices are Corporate Defined Benefit Plans, Public Defined Benefit Plans, , Educational Institutions and Religious Institutions.

“Allowing users to compare OCIO results against similar types of plans with this new client-type data, in addition to the broad comparisons already available, adds significant value and transparency to the OCIO indices,” said Alford. “We’re excited to continue to refine and expand the data and insights the Alpha Nasdaq OCIO Indices can provide to our clients.”

First quarter performance results now available

Highlights from the new data include:

  • Endowments and Foundations continue to beat a 60% MSCI ACWI Equity Index/40% Bloomberg US Aggregate Bond Index in all time periods.
  • Defined Benefit Pension Funds had a difficult 1st quarter and trailing 1 year given their weighting to fixed income

For more information on the Alpha Nasdaq Indices or to review the first quarter performance data, please click here.

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