Public Sector Investment Strategy
What is Public Sector Investment Strategy?
Investment consultants work with public retirement systems at the city, county, state and federal levels. They create flexible solutions that can help to:
- Reduce fees
- Ease implementation
- Diversify investments
- Manage assets and liabilities
- Enhance governance while protecting beneficiaries, participants, investment committees and boards
Public sector investment solutions can range in scope from traditional investment advisory consulting to partial delegation, full delegation or outsourced chief investment officer (OCIO) services.
What are the Benefits of Using a Public Sector Investment Consultant?
Leaders in the public sector are often asked to do more with less while facing new risks and an aging infrastructure. In these circumstances, an improved understanding of pension risk can help lead to better investment strategies and better expected financial outcomes. Understanding how the liability associated with pension payments interacts with asset levels, asset allocation, and funding strategy is vitally important for public plan sponsors.
How Aon Can Help
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Fiduciary Services
Fiduciary services provide informed, objective information and advice on best practices. The benefits of using fiduciary services include the adoption of good governance practices, implementation of risk mitigation tools and enhanced stakeholder confidence.
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Actuarial Consulting
Our actuarial teams, including colleagues with focused public sector experience, can help you manage your pension and other post-employment benefit plans so they are secure and sustainable.
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Delegated Pension Manager
Our delegated pension manager (DPM) platform provides integrated, end-to-end plan management. DPM helps consolidate vendors, reduce fees, streamline communications and produce better outcomes by executing key investment, actuarial and administrative roles.
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Alternative Investments and Real Asset Expertise
Alternative investments make up a broad spectrum of asset classes and strategies, including private equity, venture capital, hedge funds, and real estate.
At Aon, we are home to a global team of practitioners in real assets and private equity who secure prime deals from top managers. The group creates opportunities by drawing upon a worldwide, multimanager investment platform exclusively focused on real assets. -
Operational Due Diligence
Our proprietary offering, ODD IQ, provides a comprehensive review of how an asset management firm is run, helping investors identify and quantify operational risks to make informed, consistent decisions, enhancing your qualitative evaluations.
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Vendor Selection
The custodian search and selection process helps plan sponsors identify a vendor who can best meet their needs and fulfill fiduciary responsibilities.
Disclaimer: There is no guarantee that the results or savings shown will be achieved if you should select Aon Investments and/or its affiliated entities to provide services to you. Diversification does not ensure profit nor does it protect against loss of principal. Diversification among investment options and asset classes may help to reduce overall volatility.
Product / Service
OCIO Services
Article 10 Minute Read
Key Considerations for Strengthening Governance Through Strategic Delegation in Public Pension Investment Programs
Public pension boards are increasingly delegating investment manager selection to improve efficiency and focus on big-picture policy. Successful delegation requires clear roles, robust monitoring, and well-defined processes—empowering experts while maintaining strong fiduciary oversight and transparency.
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.
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