Aon’s award-winning1 default strategies have consistently delivered market-leading returns for our clients’ members – and, they have the lowest carbon footprint in the market today.2

About Aon’s Default Strategies

We offer two default investment strategies: Aon Managed Core Retirement Pathway Funds and Aon Managed Retirement Pathway Funds.

Both strategies target drawdown at retirement. They are actively managed to ensure portfolio resilience and adaptability, delivering strong returns while integrating climate change considerations and aiming for net zero by 2050.

“Our analysis shows that the strategic asset allocation within the default strategy compares very favourably with the alternatives available in the marketplace, providing consistently strong outcomes for members and evidenced by strong fund performance.”

Joanna Sharples, Chief Investment Officer
Aon DC Solutions

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Aon’s default strategies provide members with benefits such as inflation-linked returns, best-in-class funds, flexibility, and strong governance. Members can continue with the same funds before and after retirement, ensuring a smooth transition without transition costs.

Why Aon

Our approach to DC default investment drives the delivery of strong and consistent outcomes for members:

Member Focused Design

Our strategy aims to achieve returns that exceed inflation in the initial years by primarily investing in growth assets. As members get closer to retirement, we incorporate more defensive assets to ensure a stable transition.

Best-in-class Funds

We invest only in funds which are rated “Buy” by Aon's global research team, ensuring members access to top-quality funds.

Flexibility and Dynamism

We frequently assess our strategy to ensure it delivers the necessary returns for members. This involves reviewing fund asset allocation and manager performance and making changes that benefit our members.

ESG Integration

Climate change and ESG considerations are integrated into our investment process, requiring all funds to meet a minimum ESG rating from our manager research team. Further measures include investment in our Climate Transition Equity Fund and a low carbon approach to multi-factor equities. Our default strategies are aligned with Aon’s goal to reach net zero by 2050.

‘To and through’ Retirement

Our default strategies continue to de-risk post-retirement, as members’ objectives change over time. Members do not need to disinvest as we offer the same range of funds before and after retirement. This provides a consistent approach and seamless transition as members move into retirement, with no associated transition costs or out of market risk.

Strong Governance

Our approach involves detailed and thorough scrutiny of every fund, along with exploring new and innovative methods. This aims to maintain consistent performance in the future.

To learn more, contact Aon’s DC Solutions Team.