Delegated Investment Solutions

The Delegated Investment Solution is a dynamic approach to produce better outcomes for pension risk, cost and governance.

Many plan sponsors are finding that traditional solutions for investment strategy, plan design, and committee governance are no longer meeting their needs.

Our delegated investment solution allows plan sponsors to delegate the day to day investment decision-making and implementation to Aon. We offer clients an innovative solution for de-risking their plans and effective execution of their investment strategies. The platform offers a wide range of Liability Matching (fixed income) and Growth Component (equities and alternatives) funds. In addition to our fund offerings, Aon can assume oversight of an existing investment management program and provide access to a diverse set of best-in-class investment managers

Simply put, Delegated is our best ideas, implemented.

Traditional Investment Consulting vs. Delegated

In a traditional Investment Consulting (IC) relationship, Aon serves in an advisory capacity. However, in a Delegated relationship, the operational and investment management activity is transferred from the client to Aon`, as illustrated here.

		Roles and Responsibilities
		Traditional IC		Delegated Solution
		Committee	Aon	Committee	Aon
Strategic	Strategy	✓	Advisory	✓	Advisory
	Asset Allocation	✓	Advisory	✓	Advisory
	Investment Policy	✓	Advisory	✓	Advisory
Operational	De-risking Roadmap	✓	Advisory	Delegated →	✓
	Implementation	✓	Advisory	Delegated →	✓
	Day-to-day Operations	✓	Advisory	Delegated →	✓
	Investment Manager Selection and Termination	✓	Advisory	Delegated →	✓
	Rebalancing	✓	Advisory	Delegated →	✓
	Monitoring (1), Action (2)	✓ (2)	✓ (1)	Delegated →	✓ (1&2)
	Reporting (1), Action (2)	✓ (2)	✓ (1)	Delegated →	✓ (1&2)

Our services are comprehensive in scope to enable Aon to incorporate as many of our best ideas into the portfolio as possible. The table below summarizes the overall scope of our services:

▸Advisory services

Service	Description	Frequency
Strategy	Develop and maintain strategy reflecting market and sponsor environmental factors	Annual (minimum) or sooner if conditions warrant
Asset Allocation	Provide detailed asset allocation advice Develop tactical asset allocation advice reflecting current market environment	Annual (minimum) or sooner if conditions warrant – strategic Quarterly – tactical (reflecting GAAT MTVs)
Investment Policy	Draft and maintain investment policy statement (IPS)	Annual (minimum) or sooner if conditions warrant

▸Discretionary Services

Service	Description	Frequency
Investment Manager Selection and Termination	Define mandates, run search process, perform due diligence Select and contract with managers Monitor, remove and replace as needed	Day to day (as needed)
Rebalancing	Monitor portfolio positions and execute transactions to bring portfolio back to policy Prepare daily cash reconciliation	Day to day, monthly, quarterly – depending on client objectives
Portfolio Monitoring	Monitor actively managed portfolio positions and capital markets to define risk management activities Monitor manager portfolios for compliance with policies Lead periodic calls with managers	Day to day, monthly, quarterly
Transition Management	Direct the transition of the portfolio including pre and post transaction reporting	Day to day (as needed)
Portfolio Administration	Coordinate administrative tasks and act as a single point of contact on behalf of the Plan with custodians, accountants, investment managers and outsourced service providers	On an as needed basis

Our Differentiators

Relative to our competition, we have several competitive advantages resulting from the breadth of our firm and our business model:

Open architecture – Simply put, we can hold any investment that best meets the Plans’ objectives, whether they are funds offered by Aon or by other investment managers or by your incumbent managers. As noted below under Independence, our compensation is not tied to the investments we hold in our Aon Funds.
Access to a deep bench of research professionals – We have over 750 global colleagues in investment consulting, including over 80 full-time investment manager research professionals. This depth of resources ensures you have access to the best thinking in the industry.
Risk management – Our operational platform is constructed to manage risk for our clients including daily oversight of manager guidelines, daily monitoring of asset allocation positions, and rigorous checks on all operational functions. We are also very comfortable incorporating your risk management needs into our daily monitoring and trade execution process.
Independence – The fee you pay us is the only compensation we receive and we have no incentives to offer anything but the right solution for you. Many of our competitors have aligned their businesses differently, creating potential conflicts of interest. We are fully independent of all investment managers and do not manage any assets ourselves.
Governance – Our robust oversight of your investment strategy and managers ensures a high degree of governance is applied on a continuous basis. We report out on our oversight to ensure our clients are fully aware of compliance, and any breaches of compliance as they arise.

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Tommy Perron – Quebec
418.650.7403

Mario Delisle – Montreal
514.982.5136

Calum Mackenzie – Toronto
416.263.7750

John Myrah – Regina
306.569.6703

Julianna Spiropoulos – Calgary
403.267.7795

Satinder Sidhu – Vancouver
604.697.2194

Chris Kautzky – Delegated
604.844.7916