Is OCIO superior in asset allocation performance?

Myungjoo Kang, Inwook Song, Seiwan Kim

Research output: Contribution to journalArticlepeer-review


: This study aims to empirically analyze the asset allocation capabilities of Outsourced Chief Investment Officers (OCIOs) in Korea. The empirical analysis used data from 35 funds that were evaluated by the Ministry of Strategy and Finance from 2012 to 2020. The results of the analysis are summarized as follows. First, this study found that funds that adopted OCIO improved their asset allocation performance. Second, the sensitivity between risk-taking and performance decreased for funds that adopted OCIO. Third, it is found that OCIO adoption improves a fund's asset management execution (tactical capabilities). This study has methodological limitations in which the methodology used in this study is not based on theoretical prior research, but on practical applications. However, considering the need to clearly analyze the capabilities of OCIO and the timeliness of the topic, this study is valuable and can provide meaningful information to funders who are considering adopting OCIO in the future.

Original languageEnglish
Pages (from-to)139-161
Number of pages23
JournalJournal of Derivatives and Quantitative Studies
Issue number2
StatePublished - 8 Jun 2023

Bibliographical note

Publisher Copyright:
© 2023, Myungjoo Kang, Inwook Song and Seiwan Kim.


  • Asset allocation
  • OCIO
  • Performance
  • Random portfolio
  • SAA


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