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Our investment solutions platform helps our clients invest with confidence, navigate uncertainty and explore potential opportunities in all market conditions.
Congratulations to Ai CIO for their most recent survey* highlighting that lack of internal resources, improved risk management and a desire to capture opportunities more quickly as 3 key reasons why institutional investors continue to adopt governance models that increasingly include delegation. We are delighted to continue to lead the global market for full discretionary OCIO assets under management, for our Investment Solutions and OCIO services, to help clients address these critical issues.
* Submitted 9/30/20 data
* Source: Chief Investment Officer (ai-cio.com), full discretionary OCIO Assets under Management (AUM) ranked by worldwide assets under advisement as of September 09, 2020 as reported by each firm to ai-cio. Mercer did not pay a fee to participate in this survey. This survey is not indicative of the adviser’s future performance. Mercer’s global AUM reached $380bn as of March 31, 2021. Please see Important Notices for important information about Assets under Management.
Many investors seek guidance on setting a strategy, manager research and allocation and the day-to-day operations of an investment program. We call these “investment solutions”. There are many names for investment solutions around the world, including OCIO, delegated solutions, fiduciary management, implemented consulting, but they all centre on the same thing - supporting institutional investors in an effort to meet their goals more efficiently. Implementing an investment solution can help you maintain control and feel confident knowing your investments are in professional expert hands.
How to integrate ESG into an overall strategy?
The shift to a zero-emission economy is high on the agenda for a great number of governments and organisations globally. Many have either made pledges for change, or put a plan in place to start. We believe it is critical for investors to assess and address their ability to transition and start investing in companies positioned to perform well in a renewable economy.
How to benefit from good investment governance?
In an increasingly unpredictable and volatile geopolitical age, resilience is key for investors. Resilience can be achieved through good governance and a diversified portfolio that has established operational structures with clearly defined tasks. Good governance can help prepare for market volatility.
How to enhance a portfolio with private markets?
Investors are looking for alternative sources aimed at diversifying risk and boosting returns. Private markets are widely used. These assets are generally less sensitive to short-term public market volatility and have the potential to earn a premium if held over a longer-term. They’re not always easy to access, but they’re definitely worth the consideration.
“A governance advantage enables our clients to access timely information, respond quickly and make effective decisions. This helps them to manage risk and capture emerging opportunities. Good governance underpins everything we do as an investment partner.”
Mick Dempsey, Global Head of Investment Solutions & OCIO services.
Private markets are becoming increasingly popular as investors shift parts of their portfolios away from publicly traded assets in order to diversify their risk and return drivers. The opportunities in private markets span many sectors and regions, each offering something different to investors. Yet they all share the qualities of being shielded from much public market volatility and having the potential to earn a premium by being held over the long term.
However, accessing managers that invest in private markets can be challenging for some investors – this is where Mercer can help. We have been investing in these markets for more than 25 years, establishing deep relationships with a wide universe of highly-rated managers. Our dedicated alternatives group of over 180 professionals across 20 global locations, work on $200bn of alternatives advisory mandates for clients - $21bn of assets being under direct implementation.2
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OCIO, fiduciary management, delegated solutions and implemented consulting are all different |
There are many names for this approach, which vary by region rather than varying by what they do. They all centre on the same thing: supporting institutional investors to meet their goals more efficiently. Each provider will have their own approach, but at Mercer we let you decide how you want to work with us. Call it what you like — we call it “Investment Solutions” — and make it work for you. |
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Investment outsourcing would make us give up control of our portfolio and investment decisions |
We want to put you back in control and feel confident that your investments are working towards your goal. By lifting the burdens of implementation, monitoring and reporting, we aim to free up your time to focus on overall strategy and the challenges your organization may face. Assigning the day-to-day portfolio management decisions to our experienced team helps you to nimbly shield your assets from risks and capture emerging opportunities in the market. |
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Investment outsourcing would cost us more than our current arrangement |
Due to our size and market position, we are able to negotiate on fund manager and other provider fees, which often results in savings passed to the end investor. We believe investment solutions can help investors reach their goals more quickly, thereby cutting the time — and money — spent on the journey. |
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My portfolio is too simple or too complex to need an investment solution. |
Investment solutions can help a wide range of investors take control of their portfolios and refocus on their objectives. Every investor is different, and they each have their own goals, objectives and challenges. We assist organisations of all sizes and complexities to feel confident that their bespoke investment strategy is being implemented, managed and monitored by specialists, who are aligned with their interests. |
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It’s a one-size-fits all option. |
Investment solutions aim to do what you need them to do and not what you don’t. From bespoke investment strategy design to implementation and monitoring of managers, each client works with us in the way they choose. We are here to support investors in whichever way they need — and we can flex with you along your journey. |
Investment solutions for pension plans
Investment solutions provide a complete governance framework for pension plans, helping them untangle complexity and prepare them to face the future. From designing bespoke, outcomes-based investment strategies to nimbly shifting portfolios to seize opportunities, our pension plan clients benefit from Mercer’s heritage, skill and scale in the market. We draw on more than seven decades of providing bespoke financial advice to organisations of all types and sizes, with a global strategy team that continually bolsters its indepth knowledge across all asset classes and investment themes.
We have the world’s largest proprietary institutional investment manager database of more than 6,717 investment managers and more than $7t of subscriber assets2. This leading position we hold in the market also empowers us to push down on manager fees, which we pass straight to our clients, and engage with them on strategy and performance questions. Running our portfolio management systems in-house, using our own operational platform, also enables us to flex towards protection or opportunities efficiently, depending on our outlook for markets, while keeping our clients’ fees down.
We design investment solutions to give pension funds the tools and the confidence to tackle what lies ahead and to help meet their objectives. Connect with us to explore what we can do for you today.
Investment solutions for endowments and foundations
From large, global foundations to small, family-run endowments, we help not-for-profit organisations design portfolios suitable to their needs and that help them in their search of better investment outcomes, while keeping them in control and their costs down.
Our investment solutions governance framework gives our not-for-profit and charities clients access to as much of our institutional investment capability as they need to help meet their objectives. These clients work with our experienced teams to formulate a long-term, diversified investment strategy, drawing on our insight gained from operating in this field for several decades. We can also implement their own strategy, using our institutional-standard operational platform to access a wide global range of managers and asset classes – at competitive fees.
Our dedicated sustainable investment team can also help our clients shape an ESG policy, according to their principles and beliefs, exploring risks and opportunities that could significantly impact their portfolio. We conduct rigorous oversight of portfolios to ensures managers are sticking to their claims on ESG to protect our clients from reputational damage connected to a sector or company.
We want our endowment and foundations clients to stay in control of their portfolio, no matter what the future brings, and feel confident they have a plan in place designed to weather what lies ahead. Connect with us to explore what we can do for you today.
Investment solutions for wealth managers and family offices
We help wealth managers, including banks, financial advisers and family offices, to clearly define expected investment outcomes and potentially improve the value they deliver to their clients. Through our investment solutions platform we offer wealth managers a range of core building blocks, covering every step of their client’s journey, that they can combine to meet their needs. From institutional level strategy design to portfolio monitoring and communication, we partner with them to create a tailored framework that focuses on their long-term goals and shorter-term pressures.
Our research capability covers a wide global range of managers, spanning a significant number of asset class - including private market and illiquid portfolios – and is relied on by thousands of investors around the world. As an unbiased provider we select managers solely on quality, and consistently monitor them for shifts in strategy and operational anomalies. We also use our position to push down manager and other third-party fees with the aim of insuring our clients get the best deal.
We can also support wealth managers on timely implementation and oversight tasks. We can get you to market with new ideas quickly and execute investors’ wishes fast, meaning fewer opportunities are missed. Our investment solutions brings the power, reach and efficiency of Mercer’s global footprint to wealth managers of any size and sophistication around the world, enabling them to sharpen their focus and potentially deliver better client outcomes. Connect with us to explore what we can do for you today.
Investment solutions for insurersFrom large, global multi-line insurers to small regional specialists, we help many organisations enhance the oversight of their portfolios, while potentially reducing implementation costs and carefully managing risks. Our investment solutions framework is fundamentally a governance structure that has been designed to give our clients access to as much of our institutional investment capability as they need. It functions as a range of core building blocks that insurers choose and combine to create a precise, tailored package to suit their objectives and budget. Whether you need a complete end-to-end solution, informed regulatory reporting or just a trusted second opinion, we have what you need.
Why insurers should partner with us?
The starting point for any insurer’s investment strategy is to identify the outcomes that are essential to fulfil business objectives and will not change according to market conditions. This strategy must also be able to accommodate complex and changing regulations, without jeopardising the fulfilment of these objectives. Equally important is for insurers to stay in control of this strategy while ensuring efficient implementation and solid cost management.
Our institutional investor platform hosts a selection of strategic research from Mercer and other industry leading publishers, and customises it to help you unearth opportunities more efficiently.
*As of June 2020
**As of March 2021
***In the most recent survey by CIO Magazine, Mercer was ranked first for global discretionary outsourced Assets Under Management, survey ranking worldwide assets under advisement as of 09/30/2020 as reported by each firm to ai-cio.
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Footnotes
1 Highly rated by Mercer’s in-house global strategic research team.
2 As at 31 December 2019
* Past performance is not an indication of future returns. Superior returns cannot be guaranteed
IMPORTANT INFORMATION
The investment solutions described on this site may be delivered by different Mercer entities, depending on where you are based. Not all services described may be available in your jurisdiction. Please contact your Mercer representative to see what services are available to you.
The assets under management data (the AUM Data) reported here include aggregated assets for which Mercer Investments LLC (Mercer Investments) and their global affiliates provide discretionary investment management services as of the dates indicated. The AUM Data reported here may differ from regulatory assets under management reported in the Form ADV for Mercer Investments. For regulatory assets under management, please see the Form ADV for Mercer Investments which is available upon request by contacting Compliance Department, Mercer Investments 99 High Street, Boston, MA 02110.
Investment management and advisory services for U.S. clients are provided by Mercer Investments LLC (Mercer Investments). Mercer Investments LLC is registered to do business as “Mercer Investment Advisers LLC” in the following states: Arizona, California, Florida, Illinois, Kentucky, New Jersey, North Carolina, Oklahoma, Pennsylvania, Texas, and West Virginia; as “Mercer Investments LLC (Delaware)” in Georgia; as “Mercer Investments LLC of Delaware” in Louisiana; and “Mercer Investments LLC, a limited liability company of Delaware” in Oregon. Mercer Investments is a federally registered investment adviser under the Investment Advisers Act of 1940, as amended. Registration as an investment adviser does not imply a certain level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. Mercer Investments’ Form ADV Part 2A & 2B can be obtained by written request directed to: Compliance Department, Mercer Investments, 99 High Street, Boston, MA 02110.
Certain regulated services in Europe are provided by Mercer Global Investments Europe Limited, Mercer (Ireland) Limited and Mercer Limited. Mercer Global Investments Europe Limited and Mercer (Ireland) Limited are regulated by the Central Bank of Ireland. Mercer Limited is authorized and regulated by the Financial Conduct Authority. Registered in England and Wales No. 984275. Registered Office: 1 Tower Place West, Tower Place, London EC3R 5BU.
References to Mercer shall be construed to include Mercer LLC and/or its associated companies.
Nothing in these documents should be viewed as the provision of investment advice. Information provided is for information purposes only to assist clients to evaluate investment solutions options that may be suitable for their needs. Any decision on what investment strategy to follow is the clients’ decision. Nothing in this document constitutes advice, an offer or a solicitation of an offer to buy or sell securities, commodities and/or any other financial instruments or products or constitute a solicitation on behalf of any of the investment managers, their affiliates, products or strategies that Mercer may evaluate or recommend.
Past performance does not guarantee future results. Mercer’s ratings do not constitute individualized investment advice. The value of your investments can go down as well as up, and you may not get back the amount you have invested. Investments denominated in a foreign currency will fluctuate with the value of the currency. Certain investments carry additional risks that should be considered before choosing an investment manager or making an investment decision.
Mercer does not provide tax or legal advice. You should contact your tax advisor, accountant and/or attorney before making any decisions with tax or legal implications.
Information contained herein may contain information from third party sources. While the information is believed to be reliable, Mercer has not sought to verify it independently. As such, Mercer makes no representations or warranties as to the accuracy of the information presented and takes no responsibility or liability (including for indirect, consequential or incidental damages), for any error, omission or inaccuracy in the data supplied by any third party.
For the most recent approved ratings of an investment strategy, and a fuller explanation of their meanings, contact your Mercer representative.
When receiving investment advice from Mercer, the advice provided can relate to solutions from both third parties and Mercer group entities. As a result, Mercer does not promote, nor should you consider, the advice provided as being independent. This conflict is addressed in more detail in our Conflicts of Interest Statement. For Mercer’s conflict of interest disclosures, contact your Mercer representative or see www.mercer.com/conflictsofinterest.
Mercer universes: Mercer’s universes are intended to provide collective samples of strategies that best allow for robust peer group comparisons over a chosen timeframe. Mercer does not assert that the peer groups are wholly representative of and applicable to all strategies available to investors.
When Mercer provides its views on asset allocation strategies that it believes may be appropriate to meet a clients needs, Mercer is not recommending that a client should invest or divest from any specific financial instrument or fund. Any decision to buy or sell a specific instrument or fund based on information provided by Mercer is the clients decision and should not be viewed as a recommendation by Mercer to buy or sell any financial instrument or fund.
This material may contain confidential and proprietary information of Mercer and is intended for the exclusive use of the parties to whom it was provided by Mercer. Its content may not be modified, sold or otherwise provided, in whole or in part, to any other person or entity, without Mercer’s prior written permission. The findings, ratings and/or opinions expressed herein are the intellectual property of Mercer and are subject to change without notice. They are not intended to convey any guarantees as to the future performance of the investment products, asset classes or capital markets discussed.
When Mercer provides assistance through a manager selection service, it may consider a wider range of potential managers for specific strategies than those available through a Mercer Delegated Solution. Managers or Funds available on through a Delegated Solution may therefore differ to those recommended through a manager selection exercise.
Delegated Solutions can only be provided through certain Mercer entities. If you choose to implement all or part of your strategy through such solutions, you will be required to contract separately with the relevant Mercer Delegated Solutions entity.
References to Mercer shall be construed to include Mercer LLC and/or its associated companies.
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