Spearheading the investment team to help clients achieve objectives through a challenging and changing environment
Global Investment Insights
with Aongus O’Gorman, Head of Investments, Willis Towers Watson (Australia)
Aongus O’Gorman has been appointed to lead Willis Towers Watson’s (WTW) Australian investment team, commencing in the role as Head of Investments from 1 August 2021.
Aongus will spearhead a refreshed leadership team at WTW Australia and is well placed to lead the investment team having been an asset owner, asset manager and investment consultant in his long and established career spanning more than 25 years, six of which he has spent with WTW.
“Our leadership restructure will see us put more time into both our clients and our business, which we believe will drive our future success. To begin I have embarked on a listening tour, talking to colleagues and clients to understand how they are feeling, what they are thinking about at present and the future, and testing our current approach. This is a challenging time for our industry, and I want to ensure that we are positioned to deliver high quality services that help our clients achieve their objectives,” Aongus highlighted.
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Our business model has changed significantly over the last five years but what has not changed is the effort we put into our research and intellectual property.
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Aongus believes the biggest challenge the industry faces is the changing nature of asset owner models, with the rise of mega funds, a reduced number of mid-sized investors, and many smaller asset owners questioning their investment capabilities. Recognising this, Aongus and his team have worked tirelessly in recent years to build a multi-pillar model that can respond to clients’ needs, regardless of their size or capability.
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The biggest challenge the industry faces is the changing nature of asset owner models, with the rise of mega funds.
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“Traditional asset consulting continues to provide investment management advice and this sits in the middle of our offering, alongside strategic advisory, which supports institutional investors in big picture decision making, and our delegated capability, which is designed to meet the needs of asset owners with limited investment resources,” Aongus explained.
He continued, “our business model has changed significantly over the last five years but what has not changed is the effort we put into our research and intellectual property. This remains at the core of all our services.
“I am very proud that our clients once again voted us the number one investment consulting firm in Australia in the Peter Lee Associates survey this year (2021). Our research IP capabilities placed first in five of the six categories, which is surely why you appoint a consultant in the first place!”
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Two most significant trends/themes at present are the introduction of Your Future Your Super (YFYS) and the gathering momentum related to the adoption of climate-related objectives.
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In terms of changes Aongus would advocate for, he suggests for all asset owners to take the time to consider where they sit in the industry, what they see as the likely changes that are most impacting them and seek to change or adjust their model to maximise their chances of long-term success. “We’re seeing a significant amount of this at present, which is encouraging,” Aongus highlighted.
Perhaps the two most significant trends/themes at present our industry is facing are the introduction of Your Future Your Super (YFYS) and the gathering momentum related to the adoption of climate-related objectives, according to Aongus.
“WTW has done a tremendous amount of work on sustainable investing over the last few years. We recently made a commitment to net zero across our delegated business as a climate-specific objective and we will leverage that work across our whole client base in Australia. This is exciting because I can see that the approach we have taken goes beyond setting a policy. Rather, we are focusing on the financial impact of implementing the commitment. We are creating tools to measure progress and strategies to manage the objective. This is a strong example of our innovation and a real point of difference.
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We recently made a commitment to net zero across our delegated business as a climate-specific objective.
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YFYS has massive implications for superannuation fund investment strategies. Leveraging our actuarial and investment modelling capabilities, we have developed a framework for considering and reviewing the impact of YFYS in the context of all the other objectives funds must consider for their portfolios. This is a great example of what sets us apart in our work with superannuation funds – our ability to leverage insights from other parts of our business, in particular our actuarial team,” Aongus explained.
In terms of where the greatest investment opportunities lie, Aongus stipulated that his team prefers to focus on how to handle the opportunities as they present themselves rather than necessarily making predictions.
“Identifying possibilities and investing in good ideas are important as long as they are made within the context of the client’s objectives. Having said that, our client portfolios generally have higher levels of diversification, using more levers to deliver returns, than many others. We are always looking for ways to offer clients a different stream of return and certainly we continue to see the value of active management in this uncertain world. Essentially, this means we believe in making many smaller value-adding decisions over putting all the client’s risk into oversized dynamic calls,” Aongus revealed.
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We are always looking for ways to offer clients a different stream of return and we continue to see the value of active management in this uncertain world.
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Aongus left us with some reflections on his team and the challenge that lies ahead of him as he settles into his new role.
“We have a great team in Australia and we work closely with our global colleagues. We can leverage the knowledge, experience and resources of our colleagues all round the world, while also having an input from Australia into investment and business strategies that are influencing the shape of the global investment industry. The local/global approach is what attracted me to WTW, and it is a unique and compelling position for both our team and our clients, delivering great outcomes all round.”
“So, knowing that I am part of such a great organisation allows me to sleep pretty soundly, though it is fair to say that taking on the extra workload in my new role is likely to see me burning the candle at both ends at least for the next few months.”
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