Aon Hewitt is one of the leading investment consulting firms that provides advice to institutional investors. With the growth of investment markets and increasing complexity of pension schemes, the demand for investment consultants like Aon Hewitt has risen steadily over the years. This article analyzes the typical career paths, required skills and future prospects in the investment consulting services of Aon Hewitt. We will go over the main service offerings, compensation and benefits, work culture and growth opportunities that Aon Hewitt provides. There are ample examples of successful consultants at Aon Hewitt that graduates can emulate to build a thriving career.
Main service offerings of Aon Hewitt for institutional investors
Aon Hewitt offers a wide range of investment consulting services to pension plans, endowments, foundations, insurance companies and other institutional investors. Their main offerings are:
– Asset allocation advice – Aon Hewitt helps clients determine optimal asset mixes across equities, fixed income, real estate etc. based on their investment objectives. This is a key input for strategic decision making.
– Investment policy and governance – Aon Hewitt assists in formulating investment policies, guidelines, risk metrics, manager selection criteria etc. tailored to each client’s needs.
– Manager selection – Aon Hewitt has a rigorous manager evaluation process to recommend top performing investment managers across public and private asset classes.
– Performance measurement – Detailed performance attribution analysis is provided to evaluate effectiveness of investment strategies.
– Risk management – Aon Hewitt offers cutting-edge analytical tools for risk budgeting, asset-liability studies, liquidity analysis and downside protection.
– Customized portfolios – For large clients, Aon Hewitt constructs tailored multi-asset class portfolios to achieve better diversification and returns.
Requirements to build a successful career in Aon Hewitt investment consulting
While Aon Hewitt hires candidates from diverse backgrounds, some key skills and qualifications are needed to excel as an investment consultant:
– Strong analytical and quantitative skills – Ability to analyze complex financial models, capital markets data and portfolios is critical. Proficiency in Excel, programming and statistical analysis is a must.
– Solid communication abilities – Investment consultants interact heavily with clients, managers, researchers etc. so articulation and presentation skills are vital.
– Product and industry knowledge – Keeping current on investment products, asset classes, markets and regulations is needed to provide sound advice.
– Education – Advanced degrees like MBA, CFA, FRM or MSF are preferred but not required. Undergraduate majors in finance, economics, mathematics or engineering are favorable.
– Passion for investing – Genuine interest in capital markets and understanding client needs drive success in this field.
– Team orientation – Collaborative approach and willingness to mentor junior staff is valued at Aon Hewitt.
Career progression and senior roles for investment consultants at Aon Hewitt
Aon Hewitt provides defined career paths to motivate staff. While timelines vary based on individual performance, the hierarchical progression is fairly standardized:
– Analyst – Entry level consultants who support the team with research, analysis, report preparation etc. Require 0-2 years experience.
– Associate – Work directly with clients in areas like asset allocation studies, investment policy development, manager evaluation etc. Typically need 2-5 years experience.
– Consultant – Lead small client relationships and supervise associates and analysts. Possess 5-10 years experience with advanced credentials like MBA or CFA.
– Senior Consultant/Principal – Oversee client teams and relationships independently. Interface with clients at senior executive levels. Need 10+ years investment consulting expertise along with leadership skills.
– Managing Director/Partner – Member of leadership overseeing strategic direction, new businesses and talent development for the firm. Require 15-20+ years of stellar experience.
Benefits and work culture of consulting careers at Aon Hewitt
Aon Hewitt provides highly competitive compensation and a supportive work culture that appeals to top consulting talent globally:
– Compensation – Base salaries range from $80K-$150K for entry and mid-level roles. Bonuses are 15-25% of base. Total compensation can reach $250K+ for senior roles. Partners earn total compensation in the millions.
– Benefits – Standard employer-paid health insurance, 401(k) match, life insurance plans are provided. 25+ days of paid time off is offered.
– Training – Ongoing instructor-led training on new methodologies, industry trends etc. Tuition reimbursement offered for advanced degrees.
– Work hours – Consulting has peak periods but Aon Hewitt tries to maintain 40-45 hrs/week on average. Work-life balance is promoted.
– Advancement – Clear progression paths outlined earlier are executed transparently based on merit.
– Culture – Collaborative, team-oriented, intellectually stimulating environment focused on client excellence.
Future outlook for investment consulting careers at Aon Hewitt
The future continues to look bright for investment consulting services at Aon Hewitt:
– Asset growth – Pension assets are projected to grow globally by over 6% annually until 2025, expanding the need for external advisors.
– Retiring consultants – Up to 50% of current investment consultants will retire in the next decade, creating talent shortages.
– fee compression – Downward pressure on fees will incentivize consultants to improve operating efficiency.
– Consolidation – Smaller firms will merge into larger players like Aon Hewitt who can invest in better analytics.
– Reporting enhancements – Demand for better performance analytics and customized reporting will rise.
– Alternatives focus – Clients will continue to increase allocations to private markets where consultants add value.
Overall,investment consulting provides a rewarding career combining intellectual rigor, market insights and client relationships for top graduates passionate about investing.
Aon Hewitt offers exciting and lucrative career opportunities in investment consulting for candidates with strong analytical, communication and client service abilities. By developing deep expertise, advancing credentials and evolving leadership skills, ambitious graduates can build highly successful careers and become future partners at Aon Hewitt.