Strategies

MAP offers the following Investment Strategy Fund options:

  • Cash only: Seeks to preserve capital and liquidity in nominal terms gross of fees. This would usually be suitable for people with shorter term horizon.
  • Defensive: Designed to provide a high probability that the return on your account will be at least equal to the inflation over time plus a small margin in order to reduce as far as possible fluctuation in values. This would usually be suitable for people with shorter term horizons or those who do not want to have annual fluctuations in their balances.
  • Moderate: Designed to provide a higher long term return than Defensive option in a balanced way aiming to provide moderate fluctuation in values but offer good growth potential. This is usually suitable for people with medium to long term investment horizons.
  • Growth: Designed to provide higher long term return with higher volatility aiming to control the fluctuation in values and offer higher growth potential than the Moderate and Defensive options in the long term. This is usually suitable for people with long term investment horizons.
  • Dynamic: Designed for members that want a higher expected return and risk potential compared with the Growth option. This is usually suitable for people with long term investment horizons.

You choose your investment risk profile

Primary and Strategic Objectives
Primary investment objective
The primary objective is to invest prudently so that the reasonable expectations of members can be met at the level of risk chosen by the member. The Administration Committee is responsible for investing the Fund assets in a prudent manner/in line with members' preferences. The Administration Committee's key aim is to provide a range of investment options to members that are suitable for meeting members' long and short-term investment objectives. They have taken into account members' circumstances, in particular the range of members' attitudes to risk and term to retirement.
Strategic objectives
Cash only Risk objective: Risk that the nominal gross rate of return is lower than -0,3% p.a. with 5% probability.
Time horizon: 1 year.
Defensive Risk objective: Risk that the rate of return is Inflation-2% or lower with 5% probability.
Time horizon: 10 years.
Moderate Risk objective: Risk that the rate of return is Inflation-2,5% or lower with 5% probability.
Time horizon: 10 years.
Growth Risk objective: Risk that the rate of return is Inflation-3% or lower with 5% probability.
Time horizon: 10 years.
Dynamic Risk objective: Risk that the rate of return is Inflation-4,5% or lower with 5% probability minimizing manager risk.
Time horizon: 10 years.
Return objective
Maximizing the expected rate of return subject to the above risk objectives.
Asset Allocation

The permissible asset allocation ranges and the long term midpoints for each Investment Strategy Fund option to the different strategic asset classes are shown below.

The detailed investment strategy of the Aon Hewitt Multi Employer Provident Fund is set out in detail in the latest Statement of Investment Principles (SIP).
The Administrative Committee has the responsibility to continuously monitor the investments and take appropriate actions as needed. The allocation of each strategy is reviewed at least quarterly, taking into account medium-term views and global economic and market developments. The deviations from the long term mid-points are subject to permissible range limits.

Investment Strategy
Fund Options
Permissible Asset
Allocation Ranges
Long Term
Midpoints
Cash only Global Equity: none
Hedge Funds: none
Global Bonds: none
Cash & Loans to members: 100%
Defensive Global Equity: 0-30%
Hedge Funds: 0-15%
Global Bonds: 10%-30%
Cash & Loans to members: 30%-90%
Moderate Global Equity: 15%-35%
Hedge Funds: 0-15%
Global Bonds: 20%-40%
Cash & Loans to members: 10%-65%
Growth Global Equity: 30%-55%
Hedge Funds: 0-15%
Global Bonds: 20%-40%
Cash & Loans to members: 0-55%
Dynamic Global Equity: 60%-70%
Hedge Funds: none
Global Bonds: 15%-35%
Cash & Loans to members: 5%-25%