Delegated Investment by Pension Schemes Enters the Mainstream, Says Aon Hewitt

London, United Kingdom (PRWEB UK) 18 October 2011

Aon Hewitt, the global human resource consulting and outsourcing business of Aon Corporation, has released findings from the 2011 Aon Hewitt Delegated Investment Survey which shows that delegated investment, also known as Fiduciary Management, has become more widely accepted in the UK. Almost one in five respondents to the survey (17%) reported that their pension scheme had already delegated investment decision-making and implementation to a third-party provider. A further 8% of the survey sample said that they intend to explore opportunities to delegate.

The survey of 299 pension trustees, pension managers and others was conducted in June 2011. Its findings are in keeping with the sentiment highlighted in Aon Hewitts 2010 Delegated Investment Survey which showed that a quarter of respondents wanted to delegate investment decisions in one of the three key areas of asset allocation, swaps and manager selection.

Notably, this years findings suggest that continued market turbulence has accelerated the acceptance of delegated investment as a mainstream offering. Some 40% of responses to the survey focused on speed of investment decision making and investment implementation as the priority drivers of delegation. Turbulent markets are acknowledged as requiring greater investment conviction and market agility. Respondents went on to say that factors hindering scheme agility were typically the frequency of trustee meetings, the time resource available for dedicating to investment issues and matters relating to governance structures.

This shows a significant change since 2010 when 46% of respondents cited trustee knowledge and understanding as the primary driver to delegation.

John Rushen, UK Head of Investment Consulting at Aon Hewitt, said:

It is true that governance structures can stymie a scheme's ability to act swiftly on investment irrespective of trustee commitment and the complexity of todays investment landscape is felt to compound the issue. But, the opportunity cost of sluggish execution is only heightened by periods of significant market volatility, such as we are currently seeing.

As predicted last year, market volatility therefore remains a critical factor for pension schemes. It can erode confidence in the decision being tabled, but then also makes the timing of execution critical. When the market moves several percentage points a day, opportunities to capture value come and go. Market timing requires focus, skill and conviction if the outcome for the scheme is to be positive."

This year's survey also shows that, in the absence of delegation, the opportunity to reduce risk and optimise performance through asset class diversification continues to present trustees with significant challenges. Some 43% of small schemes and 43% of medium schemes are invested in no more than three asset classes. However, just 8% of respondents cited risk diversification as a key driver in chosing to delegate.

John Rushen continued:

It's disappointing that there has been little movement in the hours spent on investment issues or number of investment experts on trustee boards since last years survey. When you are spending less than 20 hours a quarter on investment matters, trying to reduce market exposure through wider asset allocation can be a daunting prospect. Putting more assets in the mix requires greater monitoring and judgement.

But, diversification at the asset class level or in terms of strategies and styles can further reduce portfolio volatility and we expect this to become a more prominent driver of delegation in the near term.

Globally, Aon Hewitt currently has 70 schemes with delegated assets under management of more than

Veteran Investment Bankers Form One-Of-A-Kind Merchant Bank Focused on Convergence of Technology, Data and Services Companies

McLean, VA (PRWEB) October 19, 2011

Northern Virginias technology corridor welcomes a new, one-of-a-kind merchant bank providing M&A and capital raising solutions exclusively for high growth Business and Technology Services companies. Clearsight Advisors, founded by former and present colleagues Joel Kallett and Greg Treger, along with Bhavin Patel and Beth Seidler has opened its office headquarters in the heartbeat of Northern Virginias technology corridor in Tysons Corner.

Clearsight is the only merchant bank in the Washington, DC Metro area focused exclusively on the technology and services sectors. Led by Kallett and Treger, who have a combined track record of over $ 10 billion in M&A transactions, the Clearsight team has worked together collectively for nearly a decade.

Most banks in the area are singularly focused on the Federal contracting space, said Joel Kallett, Clearsight Managing Director. The DC region is a dynamic business environment that is going through a transformation from a federal-centric community to one that is innovating across the global commercial landscape. This area is home to many pioneering high growth companies that are creating jobs and serving a litany of customers beyond the beltway, and these companies will benefit from a strategic financial advisor that understands their specific needs.

Kallett is an entrepreneur at heart and is now bringing his experience and thought leadership to work at Clearsight. Prior to forming Clearsight, Kallett was Head of the Business Services Investment Banking Group at Houlihan Lokey. His extensive career includes leading the global financial technology practice at Deutsche Banc Alex. Brown and time as a Partner with Updata Capital.

Tregers experience spans 15 years advising technology and professional services clients. He was previously with Updata Capital, where he and Kallett first met, and subsequently moved their team to Houlihan.

We formed Clearsight with a few simple goals work with top quality businesses and management teams, get involved early, provide high value-add, strategic and financial advice and participate in helping our clients realize their vision, said Kallett.

In addition to a substantial track record of success advising clients serving the private sector, the Clearsight team has a unique history of advising hybrid companies that serve both the private and public sector with their technology-enabled solutions. As the public sector has become more comfortable with procuring technology solutions on a commercial basis we have seen a growing number of solution providers serving both the private and public sectors. We believe providing a local team with global experience is critical to supporting this underserved community, said Greg Treger, Clearsights Managing Director.

The Clearsight team has advised on over 100 M&A and capital raising transactions with many of the industry leaders locally, nationally and globally, including IBM, Accenture, Deloitte, The Carlyle Group, JMI Equity and Arlington Capital. Unlike other firms, Clearsight is less focused on size and more focused on the fundamental business characteristics of its clients and the underlying dynamic of the markets they serve.

Clearsight is already planning to expand the team by adding senior-level executives who share the vision of the company.

About Clearsight Advisors

Clearsight Advisors is an independent merchant banking firm dedicated to providing world-class M&A and capital raising solutions exclusively to growth-oriented Business and Technology services companies. Clearsight combines deep market insights across software, services and data with vertical expertise in financial technology, public sector technology and education technology. This market knowledge combined with superior strategic and financial advice allows Clearsight to act as a catalyst, enabling entrepreneurs, private equity owners and board of directors to successfully advance their vision. The Clearsight team has executed M&A transactions ranging in size from $ 20 million to over $ 2 billion. For more information, visit http://www.clearsightadvisors.com

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