Aon Consulting switches index managers
By Christine St Anne
Thursday 30 July 2009
Aon Consulting has hired Vanguard to manage the index portfolio for the Aon Master Trust.
Under the agreement, assets currently managed by State Street Global Advisors will be gradually shifted to Vanguard.
The Aon Master Trust manages about $300 million in index funds, including Australian fixed interest, international fixed interest, Australian property, Australian shares, international shares and international shares, hedged.
About $218 million is now managed by Vanguard.
"State Street Global Advisors' securities lending practices include a level of risk in their index trusts as reflected in recent increases in sell spreads. That, in the trustee's view, has become inappropriate for the Aon Master Trust," Aon Consulting chief investment officer Janice Sengupta said.
"Vanguard has a very limited and very conservative approach to lending securities, which is better aligned with the Aon Master Trust's risk objectives."
In April 2008, Aon Consulting hired Russell Investments to manage the trust's $1.6 billion of actively-managed assets through a range of its multi-managers.
| 
