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.
Integrating 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 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.
Benefit from good investment governance
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.
Enhance a portfolio with private market assets
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.
*At 30th June 2021
**At 30th June 2022
***At 30th September 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.
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.
* Source: 2022 Outsourced CIO survey for full discretionary OCIO AUM, AUM as of September 2021 as reported by each of the participating firms to AI-CIO. Mercer did not pay a fee to participant in this ranking. This ranking is not indicative of the adviser’s future performance.
Please see Important Notices for important information about Assets under Management.
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A governance advantage enables our clients to access timely information, respond quickly, and make effective decisions. Good governance underpins everything we do as an investment partner.
Your blueprint for resilience
We believe that there are 12 essential steps that investors should take to improve their governance. These actions help build a strong base that enables investors to stay on top of what is happening today and be ready to face whatever the future holds.
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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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