Asian Family Offices Seek OCIO Partners, Not Portfolio Takeovers

Asia family office OCIO demand is growing as wealthy families seek investment partners that complement their internal expertise rather than take complete control of their portfolios.

Franklin Templeton head of OCIO Rich Nuzum said Asian family offices often retain sophisticated investment capabilities internally while using outsourced chief investment officer providers for investment ideas, specialist capabilities and independent challenges to their existing thinking.

In a LinkedIn post, Nuzum characterised the relationship as “keep up with me” rather than “do it for me”, requiring OCIO providers to offer greater customisation and agility.

He said providers increasingly need to act as trusted advisers, helping families embrace investment innovation while managing portfolio risks.

The diversity of family office objectives, governance arrangements and investment interests also means there is no standard portfolio model.

Providers therefore need to tailor their capabilities to individual families rather than applying conventional institutional OCIO solutions.