Management Consulting
Aon
Full Credential Description
Aon plc has introduced the Zone Framework for pension scheme investment in the UK, addressing the unique challenges faced by pension schemes in a changing financial landscape. Many schemes are experiencing improved funding levels and are now looking to preserve and capitalize on these gains rather than solely focusing on de-risking and closing funding gaps. The Zone Framework is designed to help clients navigate this shift by providing a structured approach to investment strategy that aligns with their evolving objectives. The framework consists of four segments: identifying investment priorities, optimizing investment strategies based on those priorities, navigating market opportunities, and evaluating progress against key objectives. This approach encourages pension trustees and sponsors to ask critical questions about their investment goals, balancing risk management with growth potential. By clarifying what success means for each scheme and understanding their specific risk profiles, Aon enables clients to move away from overly conservative strategies that could inadvertently increase the risk of deficits. Early adopters of the Zone Framework have reported positive outcomes, with some clients adjusting their investment strategies to better align with medium-term objectives and, in certain cases, increasing their return targets. This shift from a mechanical de-risking approach to a more dynamic optimization of portfolios allows clients to be more market-aware and positioned to take advantage of short-term opportunities, ultimately leading to better decision-making and improved investment outcomes.