Latest news with #OCIOs
Business Times
08-06-2025
- Business
- Business Times
Goldman CIO service suddenly catches on in Japan after 10 years
[TOKYO] It took more than a decade of trying, but Goldman Sachs last year landed the first client for its business of helping institutions manage their money in Japan. A second pension was signed up in early 2025. Now about 10 more potential customers are in the pipeline, according to Kenro Tsutsumi, head of Goldman Sachs Asset Management Japan. The sudden influx of business reflects an increased willingness of Japanese institutional investors to hire third parties to help oversee their trillions of US dollars in assets. More global financial firms are seeking to offer the service, known as an outsourced chief investment officer, in a bid to generate stable fee income. 'This business is a top priority for us,' Tsutsumi said in an interview in Tokyo. 'It's a big opportunity.' The return of inflation after two decades has added pressure on Japan's pensions and insurance companies to seek higher returns. The government has also been urging asset owners to better serve their beneficiaries, including by tapping the expertise of OCIOs. Financial firms, for their part, are increasingly viewing asset management as a steady source of revenue growth in an unpredictable business environment. Globally, the OCIO industry's assets are expected to grow about 7.9 per cent a year on average to 2028, consulting firm Cerulli Associates said in a November report. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up In Japan, Goldman is going up against the likes of BlackRock and Marsh & McLennan Cos' Mercer, which have also signed up large clients recently. Goldman can compete in the OCIO space through an ability to provide its own investment products across traditional and private assets, said Tsutsumi, a veteran of more than two decades at the US bank who took the top job at the Japan asset management division at the start of 2024. He declined to give the names of its two clients in Japan, citing confidentiality. BlackRock said it has made six deals for outsourced investment services in Japan to manage a total of 2.5 trillion yen (S$22.2 billion). One of the clients included the corporate pension of NEC. Last month, Mercer said it will provide OCIO services to Mizuho Financial Group's local customers, including pensions and educational institutions, through the Japanese bank's Asset Management One unit. For the OCIO business, 'Japan is probably the biggest single country-specific opportunity we have', Graham Elliot, head of Asia wealth at Mercer, said. One catalyst came last year when the Cabinet Office released guidelines encouraging asset owners such as pensions, insurers and university endowments to consider using external knowledge and outsourcing, he said. Japan has the largest pool of retirement savings in the world through the US$1.8 trillion overseen by the Government Pension Investment Fund. But the country's corporate pensions also hold around 84 trillion yen in assets, according to data from three industry associations. Elliot compared Japan's current corporate defined-benefit pension system to that of the UK in their evolution process. In the past two decades, British companies have increasingly embraced outsourced services, and Japan is moving in that direction as well, he said. Japan's life insurance market – with about 790 trillion yen of individual life and annuity policies at the end of 2023 – is the second largest in the world, also providing a ripe potential source of business for such third-party asset management services. For Goldman, managing a portion of assets for more corporate pension clients or insurers is a priority to expand its asset and wealth management business, Tsutsumi said. Senior managers see Japan as a key area in the revamped division, he added. 'The environment in Japan is attracting a lot of attention from overseas,' he said. BLOOMBERG
Business Wire
02-06-2025
- Business
- Business Wire
Northern Trust Appoints Katherine McCabe to Lead OCIO Strategy for Asset Servicing
CHICAGO--(BUSINESS WIRE)--Northern Trust (Nasdaq: NTRS) today announced the appointment of Katherine McCabe to lead the OCIO strategy for its Asset Servicing business unit. McCabe brings more than 30 years of industry experience in the asset owner space, including leadership roles in sales, strategy, consulting relations and analytics. In this newly established role, McCabe will be responsible for developing strategic relationships with Outsourced Chief Investment Officer (OCIO) firms and the associated investment consultant community. She will report to Melanie Pickett, Head of Asset Servicing, Americas. Melanie Pickett, Head of Asset Servicing, Americas, said: 'Northern Trust is committed to building stronger relationships with the OCIO community to unlock the full potential of this space, and we believe Kate's expertise will play a vital role in this effort. By tapping into her wealth of knowledge, we can craft innovative solutions that address the distinct needs of OCIOs and their clients. We're excited to welcome her to our team, where her decades of experience will make a significant impact.' McCabe brings more than 30 years of industry experience in the asset owner space. Most recently, she was the Head of U.S. Asset Owner & Canadian Sales at State Street Bank & Trust Company. Prior to that, McCabe spent more than 25 years at Bank of New York Mellon, where she took on various leadership roles in sales, strategy, consulting relations and analytics, building deep expertise in performance measurement and risk analysis. For many decades, Northern Trust has been dedicated and steadfast in serving the asset owner segment. The goal within the asset owner segment is to empower the missions of its clients, helping them to maximize investment returns so that they may then serve their constituents, their communities and the world. About Northern Trust Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 24 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of March 31, 2025, Northern Trust had assets under custody/administration of US$16.9 trillion, and assets under management of US$1.6 trillion. For more than 135 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us on Follow us on Instagram @northerntrustcompany or Northern Trust on LinkedIn. Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at
