Defined Contribution Investment Strategy
What is Defined Contribution Investment Strategy?
Defined contribution (DC) investment strategy and consulting helps plan sponsors design investment programs for their defined contribution plans that engage participants to help them achieve their retirement goals. Our consultants partner with you to select investment options for your DC plans and monitor fund managers.
What are the Advantages of Defined Contribution Investment Strategy?
Plan sponsors face many challenges, including changing regulations, volatile markets and low participant engagement. Organizations need investment solutions that address these challenges in the way that’s right for them — from traditional investment advisory consulting to full outsourcing. Aon delivers customized investment solutions paired with a strong governance framework to help ensure that each client and committee operates their plan effectively and delivers improved outcomes for their participants.
Defined Contribution Advisory and OCIO Services
-
Scale and Flexibility
Scale and flexibility of investment managers
-
Fiduciary Oversight
3(38) fiduciary oversight
-
Target Date Funds
Custom target date funds
-
Core Funds
Custom core funds (white labeled funds)
-
Stable Value
Stable value research
-
Ratings
Managed account ratings
-
Benchmarking
Fee benchmarking and negotiation
-
Compliance
Plan compliance and operations
How Aon Can Help
-
QDIA Consulting
We have a dedicated team that focuses on plan-specific analytics to assist sponsors with selecting the appropriate QDIA. We conduct and document deep-dive product reviews and provide ratings for target date funds and managed accounts.
-
Innovative Capabilities
Aon utilizes proprietary analytics to measure individual investment efficiency at a participant level to help inform committee decisions. We can help sponsors assess retirement readiness through a DE&I lens. We also offer retirement income research and rated managers.
-
Plan Governance, Design and Operations
Aon helps committees build a solid governance structure and ongoing fiduciary practices to ensure their DC Plan operates within ERISA requirements. This includes committee charters, vendor management, fee and services negotiations, compliance calendars, committee meeting agendas and meeting minutes. We also conduct operations audits.
-
Outsourced Chief Investment Officer
An outsourced chief investment officer (OCIO) ensures that a DC plan gets access to high-quality, low-cost investments within a strong governance framework.
-
Pooled Employer Plan Solution
The Aon pooled employer plan (PEP)1 provides the highest level of fiduciary services. We leverage economies of scale with the potential to lower investment management and recordkeeping fees. The PEP gives sponsors access to state-of-the-art features that may require more work for individual employers and fiduciary committees to assess and access independently.
1Aon's PEP services are provided by Aon Consulting Inc., an AIUSA affiliate. AIUSA serves as the ERISA 3(38) investment advisor to the PEP.
Product / Service
Pooled Employer Plan
Investment advice and consulting services provided by Aon Investments USA Inc. (“AIUSA”). The information contained herein is given as of the date hereof and does not purport to give information as of any other date. The delivery at any time shall not, under any circumstances, create any implication that there has been a change in the information set forth herein since the date hereof or any obligation to update or provide amendments hereto.
The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Information contained herein is for informational purposes only and should not be considered investment advice.
This document is not intended to provide, and shall not be relied upon for, accounting, legal or tax advice or investment recommendations. Any accounting, legal, or taxation position described in this presentation is a general statement and shall only be used as a guide. It does not constitute accounting, legal, and tax advice and is based on AIUSA’s understanding of current laws and interpretation.
This document is intended for general information purposes only and should not be construed as advice or opinions on any specific facts or circumstances. The comments in this summary are based upon AIUSA’s preliminary analysis of publicly available information. The content of this document is made available on an “as is” basis, without warranty of any kind. AIUSA disclaims any legal liability to any person or organization for loss or damage caused by or resulting from any reliance placed on that content. AIUSA. reserves all rights to the content of this document. No part of this document may be reproduced, stored, or transmitted by any means without the express written consent of AIUSA.
Aon Investments USA Inc. is a federally registered investment advisor with the U.S. Securities and Exchange Commission. AIUSA is also registered with the Commodity Futures Trade Commission as a commodity pool operator and a commodity trading advisor, and is a member of the National Futures Association. The AIUSA ADV Form Part 2A disclosure statement is available upon written request to:
Aon Investments USA Inc.
200 E. Randolph Street
Suite 600
Chicago, IL 60601
ATTN: Aon Investments USA Inc. Compliance Officer
