LONDON 15 October 2014 - Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE: AON), has announced the launch of Aon Delegated DC Services for trust based defined contribution (DC) schemes. The service brings together Aon’s DC and investment expertise with the aim of positioning DC schemes for more effective investment and better member outcomes.

Aon Hewitt has successfully run fiduciary management for defined benefit schemes since 2010 and can now use the experience and expertise gained for the benefit of trust-based DC schemes. This will enable schemes to access professionally constructed investment choices, offering better diversification through a wider range of investment options and a more nimble approach, while allowing trustees to focus on more strategic issues.

Trustees will have the option of using the investment options in their own lifestyle design or accessing directly a range of Aon-designed target date funds. In a pensions landscape that has seen considerable change in just the last year, the service’s ability to offer continuous innovation both ensures that trustees can stay abreast of market changes and that the scheme can meet the evolving needs of its members.

Andy Cox, chief executive of Aon Hewitt in EMEA, said:
“Creating better DC has been a key aim for us for some time.  That means delivering a more effective investment approach, capable of greater speed of action, using best in class managers and better diversification – all with the ultimate aim of better outcomes for members.

“Aon Hewitt has gained valuable experience in fiduciary management over the last five years and with the deep knowledge within the business of DC issues, we are ideally placed to offer schemes a delegated investment service which can have a real impact on member outcomes.”

Trustee boards of DC schemes that choose the new service will have the opportunity to work with Aon Hewitt’s investment experts to develop their investment strategy and flight paths and to set their scheme objectives. Aon then implements the strategy on the trustees’ behalf.

The investment platform for the service is provided by BlackRock.  BlackRock’s investment platform will allow Aon Hewitt’s clients access to a full range of Aon managed funds, including target date funds and customised solutions. BlackRock will also provide the operational platform on which Aon Hewitt can deliver its services.  
 
Paul Bucksey, managing director of BlackRock’s UK Defined Contribution business, said: 
“This is a compelling new service for DC schemes which aims to provide better outcomes for pension savers. With access to the broadest range of investment tools, a global view and an established risk analysis framework, we are uniquely positioned to provide the investment infrastructure behind it.”

Key features of the service
• Fully managed investment delegation
• Simplified yet sophisticated investment menu
• Comprehensive reporting package to trustees and members
• Transparent, charge cap compliant investment fees
• Market-competitive charges for the service

Sophia Singleton, partner at Aon Hewitt said:
“Achieving the best possible member outcomes is always the fundamental aim of a pension scheme, whichever structure it adopts.  But the nature of DC schemes is that a member’s individual pension pot at retirement is directly influenced by both the investment approach adopted and market movements at any one time. That brings the need for adopting the most efficient approach very clearly into focus.

“By taking the delegated approach, DC schemes can improve their governance, execute their longer term strategies and give themselves the best chance of delivering the best outcomes for members.”

Media Contact:
Colin Mayes                                            Marina Jane Sanchez
Aon Hewitt                                               Capital MSL
01372 733689                                           020 3219 8811
colin.mayes@aonhewitt.com                     marina.jane-sanchez@capitalmsl.com

Notes to Editors

About Aon Hewitt
Aon Hewitt empowers organisations and individuals to secure a better future through innovative talent, retirement and health solutions. We advise, design and execute a wide range of solutions that enable clients to cultivate talent to drive organisational and personal performance and growth, navigate risk while providing new levels of financial security, and redefine health solutions for greater choice, affordability and wellness.  Aon Hewitt is the global leader in human resource solutions, with over 30,000 professionals in 90 countries serving more than 20,000 clients worldwide.  For more information on Aon Hewitt, please visit www.aonhewitt.com

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About Aon
Aon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 66,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world’s best broker, best insurance intermediary, best reinsurance intermediary, best captives manager, and best employee benefits consulting firm by multiple industry sources. Visit aon.com for more information on Aon and aon.com/manchesterunited to learn about Aon’s global partnership with Manchester United.

About BlackRock
BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At June 30, 2014, BlackRock’s AUM was $4.594 trillion. BlackRock helps clients meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. Headquartered in New York City, as of June 30, 2014, the firm had approximately 11,600 employees in more than 30 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company’s website at www.blackrock.com.