Are you considering outsourcing investment management for your RIA firm? Partnering with an OCIO can expand your capacity, streamline operations, and provide access to institutional-level insights—all while potentially reducing overhead and freeing up time.
However, how are OCIO fees structured? It’s important to know because even modest cost differences can affect client outcomes and your firm’s profitability.
Some Outsourced CIOs use opaque pricing models or tack on hidden charges that chip away at returns. The key is transparency—finding an OCIO that’s upfront about costs and focused on delivering substantial value without compromising your independence.
This article from Cornerstone Portfolio Research examines what’s typically included in OCIO pricing, compares common fee models, and highlights how Cornerstone offers a truly cost-effective OCIO solution designed for RIAs.
What Services Are Included in OCIO Fees?
Outsourcing to an OCIO goes beyond basic portfolio construction. A comprehensive OCIO engagement should include end-to-end investment management support customized to your firm and your clients.
Here are the core services typically included:
- Portfolio management and research: Strategic and tactical asset allocation, investment manager selection, and ongoing portfolio monitoring.
- Risk oversight and compliance: Regular reviews to assess portfolio drift, exposure, and regulatory shifts.
- Technology tools: Real-time analytics, stress testing, and modeling platforms that support better investment decisions and risk oversight.
- Expanded strategy access: Broader diversification through alternative investments and institutional-caliber solutions.
- Client-ready reporting: Customizable reports to support transparency and communication with your clients.
When implemented well, RIA outsourcing through OCIO services can save significant time, which can be redirected toward expanding client services, prospecting, or even pursuing personal priorities.
An OCIO can also help reduce hiring costs tied to building an internal investment team and improve consistency in client service. Together, these benefits can deliver meaningful value to both your business and personal life.
That said, it’s good to watch for hidden expenses associated with OCIO providers. These could include:
- Transaction costs
- Platform fees
- Manager access charges
- Technology add-ons
If not clearly disclosed, these fees can add up quickly. Transparent pricing is especially crucial when you’re focused on delivering measurable, long-term value.
Common OCIO Fee Models
Not all OCIO fees follow the same structure, and understanding which model best suits your firm can help you make a more informed choice.
Basis Point (bps) Fees
The most common OCIO pricing model is based on assets under management (AUM). Fees are typically quoted in basis points. For example, fees may range from 5 to 50 basis points, although some providers, such as Cornerstone, operate at the lower end of that range.
This model scales naturally as your AUM grows. It aligns the OCIO’s compensation with your growth—when you succeed, they succeed. Many RIAs find this straightforward and easy to budget for.
Flat or Tiered Fees
Some OCIOs offer fixed annual fees or a tiered fee structure based on AUM thresholds. This approach may appeal to smaller or newer RIAs looking for predictable costs. However, these models are less common in the OCIO space and may lead to service limitations if your needs evolve.
Performance-Based Fees
While not typical in the OCIO space, some providers offer fees tied to the performance of their portfolios. This may sound appealing, but it can introduce budgeting uncertainty or misalignment with your investment philosophy. Due to regulatory constraints and potential conflicts of interest, this model is rare and should be approached with caution.
Key Consideration: Transparency
Regardless of the model, the most important factor is clarity. When speaking with potential OCIO partners, ask for a detailed fee breakdown. You should never be left guessing what you’re paying—or what you’re getting in return.
Next, we’ll examine how Cornerstone Portfolio Research distinguishes itself by providing full-service OCIO solutions with a value-driven fee structure.
How Cornerstone Delivers Cost-Effective OCIO Solutions
Some OCIOs charge more but deliver less. At Cornerstone, the focus is on giving your RIA the institutional-level investment resources it needs without incurring excess costs or complexity.
Competitive Fee Range
Cornerstone’s OCIO fees range from 5 to 20 basis points, with many falling in the 5 to 10 bps range. We avoid hidden charges for portfolio reporting tools, platform access, or basic service features. This straightforward structure supports your ability to offer strong value to clients while preserving your firm’s margins.
White-Labeled Services
Our services are white-labeled, so your RIA maintains brand continuity. From client reports to investment communications, everything is customized under your firm’s name, with no extra fee for this level of personalization. We can even appear on your website’s “Our Team” page to strengthen client familiarity.
Custodian-Neutral Approach
Working with Cornerstone doesn’t require you to move assets or change platforms. Our custodian-neutral model adapts to your existing structure, reducing transition friction and avoiding added tech or account migration costs.
Comprehensive Services
Within its low-fee model, Cornerstone includes:
- Advanced portfolio analytics and modeling
- Continuous risk oversight
- Regulatory and compliance support
- Access to research from our CFA® Charterholder-led team
- Tax-aware recommendations that consider your clients’ after-tax outcomes
- Support for one-off investment needs and special requests as they arise
With these services bundled into one affordable price, your firm can spend less time on investment tasks and more time building client relationships.
Benefits of Partnering With Cornerstone
Cornerstone brings over 70 years of combined experience and a practical, RIA-focused approach—on your terms. Whether your firm is scaling or simply looking to streamline operations, Cornerstone’s cost-effective OCIO structure helps you deliver more with fewer resources.
Some additional benefits include:
- Scalable service that grows with your business
- Transparent pricing with no surprises
- Solutions designed around your investment philosophy and client goals
- Weekly communication updates so you stay informed and in control
- Succession planning support for long-term continuity
- No equity giveaways or six-figure CIO salaries are required
You’ll also gain the flexibility to stay focused on your clients without needing to re-paper accounts, change custodians, or make major internal adjustments.
Contact us today to schedule a consultation or explore more about how our OCIO services can support your firm on our website.
