Josephine Norton
Aon Hewitt, a global talent, retirement, and health solutions business, has a dedicated process to determine which investment managers to cover. Their investment consulting business uses a new investment manager assessment and monitoring tool that enables the research team to monitor, evaluate, and rate over 11,000 investment products. This tool, developed in partnership with eVestment, a leading technology firm, allows Aon Hewitt to track managers based on various factors, including business, staff, investment process, risk management, performance, and fees. Their process also includes regular meetings with organizations to discuss quarterly reports, allocation policies, investment guidelines, and managerial decisions. Aon Hewitt's clear philosophy, global research perspective, and comprehensive alternatives team approach help them identify the best investment managers and products for their clients' unique needs.
| Characteristics | Values |
|---|---|
| Number of investment products covered | 11,000+ |
| Type of data used | Qualitative, quantitative |
| Data sources | Consultants, analysts, market indices, proprietary universes, eVestment |
| Factors monitored | Business, staff, investment process, risk management, performance, fees |
| Strategies covered | Equity long/short hedge funds, event-driven hedge funds, credit long/short hedge funds, global macro strategies, relative value strategies, multi-strategy hedge funds, active currency funds, global tactical asset allocation funds |
| Services offered | Strategy development and portfolio construction, manager identification/sourcing, on-going investment monitoring, staff education, manager searches, reporting on aggregate risk exposures, operational due diligence |
What You'll Learn
Investment manager assessment and monitoring tool
Aon Hewitt, the global talent, retirement and health solutions business, has launched a new investment manager assessment and monitoring tool. This tool enables the manager research team of Aon Hewitt's investment consulting business to monitor, evaluate and rate over 11,000 investment products across regions and investment strategies.
The tool applies data and analytics from eVestment, a technology firm serving the global institutional investment community. Aon Hewitt follows the progress of managers based on numerous factors, including items related to business, staff, investment process, risk management, performance and fees.
The new tool complements Aon Hewitt's existing process and strengthens their ability to advise clients on the entire universe of available investment products in any geography, regardless of the asset class. It provides a comprehensive view of a client's financial position, allowing them to make informed decisions, achieve their financial goals, and preserve and grow their wealth over time.
Aon Hewitt's performance evaluation process incorporates qualitative data collected during visits with investment management firms and a thorough quantitative analysis of historical performance and portfolio characteristics for each fund. Their consultants meet regularly with organisations to deliver and discuss quarterly reports, revisit allocation policies and investment guidelines, review managerial decisions, and proactively present new ideas for the investment program.
The investment manager assessment and monitoring tool is available to all Aon Hewitt investment consulting clients.
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Performance evaluation
Aon Hewitt's performance evaluation process is an important part of its investment consulting services. The process involves collecting and interpreting qualitative and quantitative data to assess the performance of investment management firms and provide valuable insights to clients.
On the qualitative side, Aon Hewitt's consultants and analysts regularly meet with organisations to discuss quarterly performance reports, allocation policies, investment guidelines, and managerial decisions. These meetings provide a deeper understanding of the investment strategies and decisions made by managers.
Quantitative analysis is also a key component. Aon Hewitt conducts a thorough analysis of historical performance and portfolio characteristics for each fund. This includes benchmarking performance against market indices and proprietary universes to evaluate risk-adjusted results. By interpreting this data, Aon Hewitt can determine whether investment managers are "adding value" net of fees, investing according to their stated philosophies, and performing well relative to similar approaches.
Aon Hewitt's performance evaluation extends beyond traditional investment consulting. They also offer pension risk analytics to help organisations understand the risks associated with their retirement benefit plans. This service provides a comprehensive picture of pension liabilities and helps optimise the risk-reward equation.
Additionally, Aon Hewitt has developed a new investment manager assessment and monitoring tool in collaboration with eVestment. This tool enables the evaluation and rating of over 11,000 investment products, considering factors such as business, staff, investment process, risk management, performance, and fees. By leveraging data analytics, Aon Hewitt can proactively identify skilled investment managers and advise clients on a wide range of investment products globally.
Overall, Aon Hewitt's performance evaluation process combines qualitative and quantitative analysis to deliver valuable insights to clients, helping them make informed decisions about their investments and risk management strategies.
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Risk management
Aon Hewitt's risk management approach involves a combination of investment consulting, asset allocation, and actuarial expertise. They conduct in-depth research and monitoring of investment managers and funds, considering various factors such as business operations, staff, investment processes, performance, and fees. This comprehensive analysis allows them to determine the right risk/reward balance for institutional portfolios and prepare for potential buyouts.
The company's Global Risk Services team offers end-to-end solutions, consulting on strategic objectives and implementing risk management solutions. This service is underpinned by technological innovation and a unique set of tools available exclusively to their clients. Additionally, Aon Hewitt provides pension risk analytics to help organisations optimise the rewards associated with the risks undertaken within their retirement benefit plans.
Aon Hewitt's investment consulting business utilises a new investment manager assessment and monitoring tool, leveraging data and analytics from eVestment. This tool enables efficient monitoring, evaluation, and rating of over 11,000 investment products across regions and investment strategies. The scope of data empowers Aon Hewitt to advise clients on a vast array of investment products globally, ensuring transparency and timely information delivery.
Furthermore, Aon Hewitt's liquid alternative strategy portfolios offer clients access to hedge funds and other liquid alternative strategies. The company's dedicated liquid alternatives team, comprising professionals with complementary backgrounds, ensures continuity of coverage across the investment landscape. Aon Hewitt's size and industry presence also grant them excellent access to hedge funds, benefiting their clients.
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Investment consulting
Aon Hewitt, now simply known as Aon, is a global leader in human resource solutions, with over 30,000 professionals in 90 countries serving more than 20,000 clients worldwide. The company provides investment consulting services, advising and helping its clients implement liquid alternative strategy portfolios.
Aon Hewitt's investment consulting services cover a wide array of strategies, including equity long/short hedge funds, event-driven hedge funds, credit long/short hedge funds, global macro strategies, relative value strategies, multi-strategy hedge funds, active currency funds, and global tactical asset allocation funds. The company also researches products that may be classified as absolute return and real return strategies.
Aon Hewitt's investment consulting process involves regular meetings with organisations to deliver and discuss quarterly reports, revisit allocation policies and investment guidelines, review managerial decisions, and proactively present new ideas for the investment program. Their performance evaluation process incorporates qualitative data collected during visits with investment management firms, as well as quantitative analysis of historical performance and portfolio characteristics.
Aon Hewitt has also developed a new investment manager assessment and monitoring tool that enables their team to monitor, evaluate, and rate more than 11,000 investment products across regions and investment strategies. This tool utilises data and analytics from eVestment, a leading technology firm serving the global institutional investment community. By applying this tool, Aon Hewitt can proactively identify investment manager skill and advise clients on the entire universe of available investment products.
In addition to their investment consulting services, Aon Hewitt also offers pension risk management solutions. Their dedicated Global Risk Services team helps pension plan managers understand their pension liabilities and the risks associated with their retirement benefit plans. The goal of their pension risk analytics is to optimise the rewards associated with the risk taken within the plan.
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Manager evaluation and search
Aon Hewitt's manager evaluation and search process is an important part of its investment consulting services. The company conducts regular meetings with organisations to deliver and discuss quarterly reports, revisit allocation policies and investment guidelines, and review managerial decisions. This process is supplemented by a new investment manager assessment and monitoring tool that enables the manager research team to monitor, evaluate, and rate thousands of investment products. This tool utilises data and analytics from eVestment, a leading technology firm serving the global institutional investment community.
The evaluation process incorporates qualitative data collected during visits with investment management firms, as well as quantitative analysis of historical performance and portfolio characteristics for each fund. Aon Hewitt's consultants dig deeper into the results, bringing added value to their performance monitoring services. Their interpretation of results helps answer critical questions, such as whether investment managers are adding value net of fees, performing well considering the capital market environment, and adhering to their stated investment philosophies.
The investment manager assessment tool allows Aon Hewitt to track the progress of managers based on numerous factors, including business, staff, investment process, risk management, performance, and fees. This data-driven approach enhances their ability to advise clients on a diverse range of investment products across different geographies and asset classes.
Aon Hewitt's global research group also plays a crucial role in manager evaluation and search. They conduct over 500 manager meetings annually, assessing a broad range of products, such as hedge funds, global macro strategies, and active currency funds. The group works closely with clients to customise services, including manager identification and sourcing, conducting manager searches, and reporting on aggregate risk exposures.
The company's dedicated liquid alternatives team, consisting of professionals with complementary backgrounds, aims to find the best managers globally. This team draws on the expertise of the broader alternatives team, which includes specialists in real estate and private equity, ensuring comprehensive coverage across the investment opportunity set.
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Frequently asked questions
Aon Hewitt determines which investment managers to cover by conducting in-depth research and monitoring of investment managers and funds. They use a new investment manager assessment and monitoring tool that enables them to monitor, evaluate, and rate thousands of investment products across regions and investment strategies. They also conduct 500+ manager meetings annually, assessing a broad range of products.
Aon Hewitt uses a combination of in-depth research, monitoring, and assessment tools to determine which investment managers to cover. They also conduct regular meetings with managers to assess their products and strategies.
The tool can accurately and efficiently monitor, evaluate, and rate more than 11,000 investment products across different regions and investment strategies.
Aon Hewitt considers numerous factors, including business, staff, investment process, risk management, performance, and fees. They also assess a range of products, such as hedge funds, global macro strategies, and active currency funds.
Aon Hewitt's approach to manager research helps their clients stay ahead of developments in the competitive active investment management industry. It enables them to advise clients on a wide range of investment products in any geography and across different asset classes.
Aon Hewitt's investment manager assessment tool complements their existing process and strengthens their advisory capabilities. They also have a dedicated team of experts who conduct regular research and meetings to identify the best managers globally for their clients.
