Aon Hewitt is one of the world’s leading investment consulting firms, specializing in providing consulting services to institutional investors such as pension funds, endowments, foundations, and insurance companies. With a global presence spanning 30 countries, Aon Hewitt advises on over $1 trillion in assets worldwide. This article will provide an in-depth look at Aon Hewitt’s investment consulting services, competitive advantages, clientele, and growth strategies.
Provides full range of investment consulting services
Aon Hewitt offers a comprehensive suite of investment consulting services, including asset allocation studies, investment policy development, manager selection and monitoring, performance measurement, and risk management. Its consultants have extensive expertise across all major asset classes, including equities, fixed income, real assets, hedge funds, and private markets. This enables Aon Hewitt to provide customized solutions tailored to each client’s unique objectives and constraints.
Focus on manager research and due diligence
Manager selection and monitoring is a core competency of Aon Hewitt’s investment consulting practice. Its manager research team conducts rigorous due diligence on investment managers across various strategies. This involves both quantitative analysis of past performance and portfolio characteristics, as well as qualitative assessments of the manager’s investment philosophy, personnel, operations, and business management. The manager ratings generated through this process allow Aon Hewitt to construct optimized manager lineups for its clients.
Strong clientele among pension funds and endowments
Aon Hewitt provides investment consulting services to over 400 institutional investors globally, including 150 of the largest U.S. pension plans and 30 of the top 50 endowments. High-profile clients include California State Teachers’ Retirement System, New York State Common Retirement Fund, Stanford University Endowment, and the University of California Retirement Plan. Aon Hewitt’s blue-chip clientele is a testament to the quality and value of its investment consulting capabilities.
Utilizes advanced analytical tools and databases
Leveraging advanced analytics and proprietary databases is a key advantage of Aon Hewitt’s investment consulting practice. For example, its Aon Hewitt Navigator provides sophisticated asset allocation modeling capabilities to help clients set optimal long-term policy targets. The Aon Hewitt Performance Database offers robust benchmarks and peer universe analysis for performance measurement. These analytical resources, combined with the consultants’ expertise, enable Aon Hewitt to deliver state-of-the-art solutions.
Expands global footprint through acquisitions
Aon Hewitt has strengthened its position as a top global investment consultant through strategic acquisitions. Major deals include purchasing Townsend Group in 2010, Hewitt EnnisKnupp in 2012, and Aon’s investment consulting units in EMEA and Asia Pacific in 2017. These deals have expanded Aon Hewitt’s geographical coverage and added specialized capabilities in areas like hedge funds and real estate. The firm is well-positioned to capitalize on the growing global demand for sophisticated investment consulting services.
In summary, Aon Hewitt is a prominent leader in the investment consulting industry, leveraging its deep resources, blue-chip client base, advanced analytics, and global reach to deliver elite services worldwide.