Outsourced Chief Investment Officer (OCIO)
Strained resources and funding shortages impact an institutional investor’s ability to meet investment, fiduciary and operational goals. Aon offers OCIO (fully delegated) and partially delegated investing solutions to help meet those challenges. By leaving the day-to-day investment management to us, our goal is to help reduce fees*, ease implementation, diversify investments and manage assets/liabilities.
Key Reasons to Delegate
Aon’s consultants and integrated services can help you create an overall strategy for managing the cost, risk and governance of your portfolio. Consider delegated investing to improve results in these critical areas:
- Allocation of staff time
- Daily monitoring
- Timely decisionmaking
- Nimble execution
- Single point of contact
- Delegated accountability
- Objective advice
- Investment Policy development and oversight
- Regulatory awareness and oversight (DB, DC, Public)
- Access to top investment managers at institutional pricing
- Fees independent of implementation
- Innovative and alternative investment opportunities
- Greater ability to meet long-term obligations by relying less on current returns for short-term payments (DB)
- Experienced and suitable investment management
- Assets and liabilities management
- De-risking opportunities as part of overall strategy (DB)
Partial Delegation–Advisory or Discretionary Role
Many organizations can benefit from partially delegating investment management to Aon. Unlike fully outsourcing investment officer duties, we assume discretion over certain areas of your investment program:
- Multi-asset credit – Customized asset mix and access to innovative market offerings
- Private equity and/or real assets – Access to The Townsend Group, an Aon company of practitioners in real assets and private equity, to secure timely deals from top managers worldwide
- Liquid alternatives – Fundamentally uncorrelated investment strategies
- Functional OCIO role – Aon’s advisory role for manager selection; discretionary role for execution.
- Liability-hedging – Investment manager selection and cash flow strategies related to a de-risking glide path for DB plans
OCIO – Fully Discretionary Role
Aon’s OCIO solution enables you to delegate responsibility for selecting and implementing investment strategies, as well as other co-fiduciary duties to help add value and minimize risk. Your organization’s needs are at the center of our delegated investing services:
Find the Best Fit – Investment Advisory or OCIO
|What best describes your organization?
- Experienced investment committee (IC)
- Wide range of IC financial skill sets
- Changes easily implemented in your governance model
- Access to alternative/niche solutions
- Sufficient internal resources to manage cash flow and reallocate assets
- Dedicated, well-equipped staff to monitor and evaluate complex portfolio risks and opportunities
- Varied spectrum of IC financial skill sets
- Biases that may hinder necessary portfolio changes
- Limited or no access to attractive investment options
- Under-resourced staff struggling to manage complex portfolios and manager relationships
- Generalist staff unable to monitor ongoing complex portfolio risks and opportunities
|The choice is clear...
|Investment Advisory Consulting
||Partial Delegation or OCIO
Learn how we can bring our delegated expertise to your defined benefit, defined contribution, non-profit, or public/governmental portfolio.
* There is no guarantee that the projected estimated savings will be achieved if you should select Aon and/or its affiliated entities to provide services to you.