United Kingdom

Aon says UK pension schemes should ignore the crowd in bear markets

New paper advocates a rebalancing approach to investment


LONDON (8 April 2020) – Aon, a leading global professional services firm providing a broad range of risk, retirement and health solutions, has issued a new paper, ‘Rebalancing - Ignore the Crowd… Follow Your Policy’ which focuses on the dilemma currently facing pension schemes as they confront the challenge of an investment bear market.

This new paper looks at how schemes can and should react in the face of market falls by focusing on a long-term policy and sticking to their investment convictions. It also looks at the legacy of past bear markets and how they have been best ridden out.

Daniel Peters, partner at Aon, said:
“There is much that can distract investors in stressed markets, not least the behavioural financing of the crowd. When the momentum of the stock market appears to be one way – down – it’s hard for anyone to step back and assess what really is the best course of action – or inaction – for their scheme.

“Our analysis of historical experience, leads us to advocate an approach of disciplined rebalancing, enabling investors to stay focused on a long-term investment policy. Timing markets is never straightforward and can be costly – nevertheless we firmly believe that disciplined rebalancing adds value.”

Daniel Peters continued:
“We are all too aware that these are tough times but there are ways that schemes can hold firm to their investment beliefs, explore opportunity allocations and use medium-term views to guide the way in rebalancing their portfolio until calmer markets return.”

‘Rebalancing - Ignore the Crowd… Follow Your Policy’ is available here


About Aon

Aon plc (NYSE:AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.

Follow Aon on Twitter: @AonRetirementUK

Sign up for News Alerts: http://aon.mediaroom.com/index.php?s=58

Aon UK Limited is authorised and regulated by the Financial Conduct Authority.

Registered in England and Wales. Registered number: 00210725. Registered Office:

The Aon Centre, The Leadenhall Building, 122 Leadenhall Street, London EC3V 4AN.

Media Contact:

For further information please contact:

Colin Mayes
Phone: +44 (0) 7801 748138
Email: [email protected]


Tommy Cooper
Kekst CNC
Phone: +44 (0) 7983 921719
Email: [email protected]