Developing an appropriate asset allocation policy is the first step in effectively managing your pension fund. We will assist you in the development of a sound asset allocation policy by taking into account your risk tolerance, pension liabilities, and investment time horizon. We conduct extensive research into various assets, including international stocks and bonds, real estate, venture capital, emerging markets, etc. Our research and proprietary asset allocation/asset-liability models assist us in developing a policy that is appropriate and specific to your plan.

Our approach to asset-liability modeling is unique in the industry. Some of our distinguishing characteristics include the following:

• A true and dynamic (stochastic) integration of assets and liabilities.
  
• Results-oriented analysis through the use of specific client goals.
  
• Focus on “true economic cost” as opposed to a singular focus on investment returns, cash contributions, or surplus.
  
• A time-tested methodology combining log normal and structural models.

Value Added by Asset Allocation Consulting
During the last ten years, Hewitt Investment Group has conducted numerous asset allocation studies. Our analyses have helped clients focus on their long-term investment horizon and take risks commensurate with that long-term horizon. Usually, this has helped clients take higher short-term risks than they would have taken otherwise, which leads to a stronger overall investment program in the long run. On the basis of anecdotal evidence, we have confirmed that asset allocation decisions made with our help have added billions of dollars to our clients’ portfolios. <Back to Top>