We help clients formulate and implement a long-term, diversified investment strategy based on our Outsourced CIO (OCIO) operational platform
Many investors seek guidance on setting a strategy, manager research, asset allocation, and the day-to-day operations of an investment program. We call these ‘investment solutions’. There are many terms used for these services including OCIO, delegated solutions, fiduciary management, or implemented consulting, but they all centre on the same thing: supporting institutional investors to meet their goals more efficiently. Implementing an investment solution can help you maintain control and feel confident knowing your investments are in professional hands, while still maintaining ultimate control.
The shift to a zero-emission economy is high on the agenda for a great number of governments and organisations globally. Many have made pledges for change, mapped out a journey plan, or have started implementing a strategy. 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 sustainable economy.
In an increasingly unpredictable and volatile geopolitical environment, resilience is key for investors. Good governance and a diversified portfolio with established operational structures and clearly defined tasks can provide a robust framework; ensuring investors are well placed to handle market volatility. Ask us about our investment solutions for wealth management clients.
Investors want alternative assets that can diversify risk and boost returns. Private market assets are growing in popularity, as they are generally less sensitive to short-term public market volatility and can earn a premium if held over a longer term. They are not always easy to access, are worth consideration. A sophisticated institutional investment solution can help investors access these assets efficiently.
Lack of internal resources, improved risk management and a desire to capture opportunities more quickly are the three key reasons why institutional investors continue to adopt governance models that increasingly include delegation.
Demand for Investment Solutions/outsourced CIO services has grown exponentially in recent years and is a trend we firmly believe will continue. Asset owners are aware of the need for robust governance and implementation structures if they are to meet their unique financial objectives. Outsourced CIO services offer a variety of solutions to help meet this need, providing the enhanced expertise and agility to navigate highly challenging markets.
Our continued successful growth in this space has seen us ranked this year again as the leading provider of OCIO solutions globally to defined benefit and contribution schemes in ai-CIO’s annual Outsourced Chief Investment Officer Survey* (published in April 2022), and as the second largest provider to the endowment and foundations market.
Navigating the current volatility, increasing allocations to private markets, ESG policy design and implementation are the key areas of focus from our clients at this time. We are committed to helping our clients address these issues aligned with meeting their long-term investment goals.
Private market opportunties span many sectors and regions, offering many potential benefits including protection from much of the public market volatility, offering the potential to earn a premium over the long term. Accessing private market managers can be challenging for some investors – and 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 and building a strong investment governance capability.
Prepare yourself and your portfolio today to stay on top of whatever lies ahead
Join us for our annual ‘Arthur’s Seat’ charity walk on 24 May.
Is your portfolio fit for a return to the 1970s?
A look back at de-risking strategies, have they worked and how to capture opportunities
Review how they build ESG and climate change awareness into your solution.
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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. |
Myth |
Fact |
OCIO, fiduciary management, delegated solutions and implemented consulting are all different. |
There are many names for this approach, which vary by region rather than by what they do. They all centre on the same thing: providing portfolio solutions to support institutional investors to help meet their goals more efficiently. Each provider has its 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 we’ll help make it work for you. |
Investment outsourcing means giving 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 day-to-day portfolio management decisions to our experienced team helps you to nimbly shield your assets from risks and strive to capture emerging opportunities in the market. |
Investment outsourcing would cost more than our current arrangement. |
Due to our size and market position, we can assist with fee negotiations with fund manager and other provider. We believe investment solutions may help investors reach their goals more quickly, thereby cutting the time and money spent on the journey. |
My portfolio is too simple or too complex to need an investment solution. |
Replace with 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 organizations of all sizes and complexities to help them feel confident that their bespoke investment strategy is being implemented, managed, and monitored by specialists aligned with their interests. |
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. |
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© 2022 Mercer LLC. All rights reserved.
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.
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This does not contain investment advice relating to your particular circumstances. No investment decision should be made based on this information without first obtaining appropriate professional advice and considering your circumstances. Mercer provides recommendations based on the particular client's circumstances, investment objectives and needs. As such, investment results will vary and actual results may differ materially.
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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 LLC 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.
Not all services mentioned are available in all jurisdictions. Please contact your Mercer representative for more information.
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 under the European Union (Markets in Financial Instruments) Regulation 2017, as an investment firm. Registered officer: Charlotte House, Charlemont Street, Dublin 2, Ireland. Registered in Ireland No. 416688. 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.
Investment management services for Canadian investors are provided by Mercer Global Investments Canada Limited. Investment consulting services for Canadian investors are provided by Mercer (Canada) Limited.
Fiduciary management provides a complete governance framework for pension funds, helping to 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 fund 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 it’s in depth 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 GBP 5,6tn 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 complete solutions to give pension funds the tools and the confidence to tackle what lies ahead and to help meet their objectives.
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.
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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. |
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.
From 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.
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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. |
Dan is a Partner and UK Head of Investments for Mercer. He is responsible for bespoke investment solutions for clients, developing commercial relationships and overseeing the execution of Mercer’s investment solutions, distribution and growth strategy. Dan sits on Mercer’s UK Growth Leadership Committee, Wealth Leadership Team and the Investment Solutions European Leadership Committee.
James is Head of Investment Strategy for Mercer’s UK Delegated Solutions business. As well as leading the strategy team James is the lead Strategist for a number of clients where the scope of work ranges from detailed modelling of the financial risks his clients face to planning and implementing sophisticated journey plans. He has a particular focus on investment strategy and its evolution overtime to reflect the changing dynamics of the pension scheme.
Helen is responsible for the advice and delivery of all of Mercer's UK delegated solutions clients, including the DB Master Trust. Previously named as Investment Advisor of the Year by Professional Pensions.
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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
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