The Global Custody Advisory Services team exclusive focus

• Custody, Trustee & Investment Operations Consulting
• Securities Lending Consulting

A full-time team devoted solely to global custody & securities lending consulting

• 115+ years of collective, investment operations industry experience.
• Each team member has direct, long-term experience working for the top global custodians.
• Industry-leading insight and expertise derived from our high number of projects.
• The combined value of our hands-on experience and sizeable project volume provides significant value to each client project.
• Coverage includes US, Canada, EMEA.

Client Segment Expertise

• Retirement Plans (public and corporate)
• Asset Managers (registered and unregistered)
• Endowment/Foundations
• Insurance Companies (general account and variable annuities)
• State/Province/Federal Treasury
• Central Bank/Monetary Authority/Sovereign Wealth
• Corporate Cash
• Healthcare Systems

Investment Operation Product Expertise

• Custody
• Accounting
• Technology flexibility & capabilities
• Cyber and system security
• Business continuity
• Fund administration
• Securities lending
• Benefit payments
• Treasury services
• Performance & Risk
• Compliance
• Derivatives
• Alternative investment
• Cash processing
• FX processing
• Tax reclaims

Custody, Trustee & Investment Operations Consulting

Engagements
At-Market Custody / Trustee Evaluation (RFP/RFI): From interviewing staff to create customized RFPs, to establishing Service Level Agreements, the Aon team manages the entire Custody RFP process and includes the Aon Global Custodian Scoring Database. Aon will include a client internal investment operations assessment, where our team will interview and collect data from the incumbent custodian provider and client staff. These steps are utilized to create a customized client RFP.

On average Aon completes 30 custody projects per year and can leverage our experience and influence for each client project. Approximately 70% of our client projects remain at their incumbent custodian and the RFP is utilized as a tool to maximize service levels for a market fee.

Outsourced Custody Conversion Management: In the event a new custodian is selected, Aon can manage and lead the conversion on behalf of the client from start to finish. Our extensive experience working on conversions enables us to anticipate issues before they arise. During the conversion Aon will work to maximize the operational structure at the new custodian ensuring that our client’s investment and reporting needs are met on day-one. This includes enhancing use of the custodian’s technology platform by removing manual and high-risk processes.

Our team will complete custodian required documentation and will serve as a resource for thought and support throughout the conversion project. On average, we manage the completion of one or more successful custody conversions per month.

Custody Fee Benchmark & Invoice Analysis: Aon maintains a Historical Fee Engine that is utilized to benchmark client’s custodial fees. This tool catalogues all RFP fee proposals that Aon has conducted, and on average Aon receives 60 bids annually and 300+ bids in total that can be leveraged to provide benchmarking analysis. The engine is categorized based on a client specific profile which includes services consumed, asset size, asset complexity and client segment. Once the analysis is complete, Aon will host a call to discuss the results. This service is provided to all Aon clients & prospects at no charge.

Client Investment Operations Evaluation & Enhancement: The Client Internal Investment Operations Assessment & Enhancement consists of Aon reviewing client’s internal investment operations to identify opportunities for improvement, ensure best practices are being employed and utilization of the custodian’s offering and technology platforms is being utilized. One example being conducting a tax reclaim processing analysis to determine the effectiveness of the custodian’s reclaim process.

Benefits

• A custody consulting project managed by Aon will serve as independent 3rd party due-diligence documentation on the process, selection and can support fiduciary oversight
• Help ensure utilization of the custodians’ best technology and service offerings
• Maximize investment operational structure
• Highlight the highest level of services for the most market appropriate fee
  
  
  • Due to Aon’s large project volume, we leverage our ‘negotiating power’ for clients.
  • Obtain price transparency
• Enhance investment operational structure

Securities Lending Consulting

Ramifications of global regulatory changes, market developments, and balance sheet management have created new and valuable securities lending opportunities. New performance enhancement and risk mitigation opportunities are driving clients to re-evaluate legacy guidelines, restrictions, vendor practices, and contract provisions. Clients increasingly seek independent and professional securities lending expertise to analyze outdated program structures, optimize revenues and further mitigate risks and fiduciary liability.

Aon provides analysis and recommendations customized to unique client revenue goals and program objectives with consideration to your risk, legal, tax, regulatory and operational concerns.

Product Expertise

• Agency lending
• Principal lending
• Self-borrow
• Collateral re-investment
• Liquidity access

Engagements
Securities Lending Oversight, Revenue Optimization & Risk Mitigation
Aon provides ongoing securities lending oversight services to help ensure industry best practice for lending, cash and non-cash collateral, contractual, regulatory, and operational risk functions are optimized to clients’ unique risk and revenue objectives. Clients can outsource their required securities lending monitoring duties while also sourcing best practice services through Aon.

At-Market Evaluation (RFP/RFI)
Aon customizes and issues an RFI or RFP, analyzes responses, provides recommendations, and assists with contract and fee negotiation. Clients that are not familiar with securities lending considerations, thinking of changing providers, or have a dated relationship find an at-market performance, risk and fee analysis tremendously valuable.

Securities Lending Due Diligence Certification or Market Pricing Analysis
Aon conducts an in-depth review of your provider’s capabilities, capacities, and competences, as well as a variety of specific risk factors that may include a market pricing analysis. This is a commonly used solution for Asset Managers to support 15(c) or 36(b) 40 Act requirements and Asset Owners to support ERISA or other fiduciary responsibilities and obtain documented evidence of best pricing and service.

Onboarding Implementation
Aon works with you and your new agent through onboarding to ensure legal, regulatory, operational and optimal program structural considerations have been vetted and customized. This is most helpful for clients changing custodians / service providers or implementing a new securities lending program.

Benefits

• Gain immediate expertise and best practice knowledge through professional oversight
• Understand options and capabilities across the universe of providers
• Evaluate your best options for routes to market - agency, principal, auction, CCP, and peer-to-peer
• Analyze risk/reward trade-offs between collateral options, structures and guidelines for your assets.
• Optimize parameters and guidelines that are established in your best interests.
• Maximize your contractual and operational risk mitigation opportunities.
• Select the most appropriate lender for your unique body of assets and considerations.