It is widely accepted that the asset allocation decision is one of the most important—if not the most important—decisions dictating an investor’s success (and risk). Allocation requires a long-term outlook. The constraints of a formal asset allocation policy should not, however, impede investors’ ability to implement attractive opportunities or innovative ideas as they arise.
We recommend investors consider an Opportunity Allocation as a way to be nimble and take advantage of market opportunities. An Opportunity Allocation can overcome the rigidity of a formal asset allocation design and provide flexibility in implementation. This approach isn’t for every investor, since the investor’s governance and circumstances can strongly influence the merits of the approach. But where it’s a good fit for the investor, an Opportunity Allocation can be compelling.
An Opportunity Allocation is not an investment in and of itself; rather, it is part of an investor’s governance structure that helps facilitate the execution of great ideas in the portfolio, including bank capital relief. An Opportunity Allocation is flexibility built into the investment policy statement to enable investors to make investments that may not fit within a traditional asset allocation construct.
Download the whitepaper above for more insights on the reasons to create such policy flexibility.
This document has been produced by the Aon Hewitt Investment Consulting, a division of Aon plc, and is appropriate solely for institutional investors. Nothing in this document should be treated as an authoritative statement of the law on any particular aspect or in any specific case. It should not be taken as financial advice, and action should not be taken as a result of this document alone. Consultants will be pleased to answer questions on its contents but cannot give individual financial advice. Individuals are recommended to seek independent financial advice in respect of their own personal circumstances. The information contained herein is given as of the date hereof and does not purport to give information as of any other date. The delivery at any time shall not, under any circumstances, create any implication that there has been a change in the information set forth herein since the date hereof or any obligation to update or provide amendments hereto. The information contained herein is derived from proprietary and non-proprietary sources deemed by Aon to be reliable and are not necessarily all inclusive.
Aon does not guarantee the accuracy or completeness of this information and cannot be held accountable for inaccurate data provided by third parties. Reliance upon information in this material is at the sole discretion of the reader.
This document does not constitute an offer of securities or solicitation of any kind and may not be
treated as such, i) in any jurisdiction where such an offer or solicitation is against the law; ii) to anyone to whom it is unlawful to make such an offer or solicitation; or iii) if the person making the offer or solicitation is not qualified to do so. If you are unsure as to whether the investment products and services described within this document are suitable for you, we strongly recommend that you seek professional advice from a financial adviser registered in the jurisdiction in which you reside. We have not considered the suitability and/or appropriateness of any investment you may wish to make with us. It is your responsibility to be aware of and to observe all applicable laws and regulations of any relevant jurisdiction, including the one in which you reside.
Aon Hewitt Limited is authorized and regulated by the Financial Conduct Authority. Registered in England & Wales No. 4396810. When distributed in the U.S., Aon Hewitt Investment Consulting, Inc. (“AHIC”) is a registered investment adviser with the Securities and Exchange Commission (“SEC”). AHIC is a wholly owned, indirect subsidiary of Aon plc. In Canada, Aon Hewitt Inc. and Aon Hewitt Investment Management Inc. (“AHIM”) are indirect subsidiaries of Aon plc, a public company trading on the NYSE. Investment advice to Canadian investors is provided through AHIM, a portfolio manager, investment fund manager, and exempt market dealer registered under applicable
Canadian securities laws. Regional distribution and contact information is provided below.
Aon plc/Aon Hewitt Limited
The Aon Centre
The Leadenhall Building 122 Leadenhall Street
London EC3V 4AN
Aon Hewitt Investment Consulting, Inc.
The Aon Center
200 E Randolph Street
Chicago, IL, 60601, USA
Aon Hewitt Inc./Aon Hewitt Investment
225 King Street West
Contact your local Aon representative for additional contact and/or registration information relevant to your local country if not included above.
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.
© Aon plc 2019. All rights reserved.
The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.