Investment Advisory Consulting
What is Investment Advisory Consulting?
Investment advisors collaborate with a wide range of institutional investors, including corporate defined benefit and defined contribution plans, public/governmental plans and non-profits. Among the solutions and services advisors provide are: portfolio structure analysis, alternatives consulting, manager research, asset allocation and investment policy services.
What are the Benefits of Investment Advisory Consulting?
Investment advisory consulting helps organizations implement investment programs, effectively manage and diversify assets and ensure robust governance. To meet the unique needs of each institutional investor, investment advisory consulting blends investment and asset modeling experience to help build tailor-made investment programs.
When it comes to defined benefit plans, asset and liability risks must be carefully managed in an integrated manner to manage funded status volatility and ultimately meet the benefit obligations to participants. Meanwhile, non-profit portfolios must incorporate scenario stress testing, modeling of funding patterns and analysis of spending needs to arrive at the appropriate asset structure. Defined contribution plans, on the other hand, must offer well-structured arrays of investment options with a variety of asset class exposures and risk/return profiles to participants.
How Aon Can Help
Aon provides a comprehensive suite of services, including strategy development, asset allocation and tailored research services. By leveraging our team’s expertise across asset classes and spanning a wide variety of institutional pool types, we can provide multifaceted advice that considers your risk tolerance and long-term goals. Our team provides implementation advice, portfolio structure, manager selection, monitoring and reporting services.
-
Asset Allocation
Asset allocation is an important part of an institutional investor’s portfolio strategy. An effective asset allocation strategy includes:
- Assessing the organization’s financial goals and risk tolerance
- Analyzing different asset classes and liabilities/spending needs to determine the optimal mix
- Selecting a portfolio manager with experience in implementing the chosen asset allocation strategy
- Continually monitoring performance to ensure that objectives are being met
- Rebalancing the portfolio as needed to maintain optimal asset allocation
-
Asset Manager Research and Selection
Asset manager research and selection are critical to ensure the success of any portfolio or investment strategy. It can help identify asset managers best suited to manage funds according to the investor’s desired risk profile. The manager selection process also helps ensure that investments are managed in accordance with industry regulations.
-
Monitoring and Reporting
Continuous monitoring of asset managers is key to ensuring that the portfolio remains on track with its goals. Aon’s team works with organizations to regularly review and update their selection of asset managers to ensure that objectives are being met.
Product / Service
Asset Allocation Strategy
Aon's Asset Manager Research and Selection Process
-
01
Initial Inputs
News flow, quantitative screens, portfolio analysis and intro meetings
-
02
Pre-Meeting
Discuss key issues, set the agenda and share with the manager
-
03
Rating Discussion
Full airing of issues with consultants and specialists
-
04
Post-Meeting
Do they do what they say they do?
-
05
Manager Visit
We ask the questions and listen to the answers
-
06
Rating Sheet
Review and update then shen with the manager
-
07
Implementation of Research
Meetings and manager selections
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
