Mercer offers its clients an opportunity to potentially enhance their pension investment performance, reduce their fiduciary responsibility, reduce the time commitment within the organization and more efficiently manage the cost of operating these investment programs. We believe Mercer is unique in its ability to provide full, highly customized investment outsourcing solutions.

The comprehensive list of services we offer includes:

Investment advisory

Objectives definition

Appropriately allocating assets and determining a Plan's manager structure are two of the most important Plan decisions. Once a Plan has established these structures, verification or modification of the investment policy is a critical final step required to ensure that a Plan's activities reflect its overall objectives. Our discussions with Plan fiduciaries help a Plan to set its goals and objectives, contribution and benefit payment policies, funded status, risk posture, and return expectations. We believe that this discussion is integral in understanding the Plan's history and structure, in addition to its established goals.

Strategic asset allocation

The primary goal of our strategic asset allocation analysis for institutional plans is to provide a link between the Plan's benefit or other cash payment objectives (liabilities) and its investment objectives (assets). Additionally, our analysis permits the Plan to evaluate the probability of future outcomes based on different asset allocation strategies, design changes, changes in its accounting or actuarial bases, and any applicable demographic shifts. A Strategic Asset Allocation (SAA) study is one method employed to study the potential long-term impact of investment policy decisions.

Portfolio design

Most investors do not have sufficient assets required to diversify across asset classes and investment managers on a cost-effective basis. Insufficient investment assets introduce investment manager risk and limit choice and mobility. Mercer's portfolio managers analyze client portfolios to assess gaps or redundancies in investment style, market coverage, and industry diversification. Their investment recommendations provide insight on appropriate asset classes, target allocations, and expected performance on a net-of-fees basis. We do not subscribe to a "one size fits all" philosophy. Mercer's 30-year consulting heritage has sensitized us to the uniqueness of a client's risk/return preferences and philosophy regarding issues such as active and passive management. Our investment management products were deliberately designed in a modular fashion so that the investor's portfolio may be customized to risk/return preferences. Alternatively, Mercer offers model portfolios for the investor's convenience, providing all the advantages of a professionally managed, diversified, multi-manager portfolio.

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Asset management

Multi-manager investing

The hallmark of Mercer's discretionary investment management services is its multi-manager approach to investing. Mercer's multi-manager approach is based upon a carefully constructed array of investment products for investors who want to invest either all or a portion of their assets. Within this context, Mercer manages a series of investment strategies that differ by risk and potential return characteristics.

Our investment strategies seek diversification by:

• Geographic region
• Market maturity
• Asset class
• Investment style
• Investment philosophy
• Investment process
• Sector and security selection

Most of our investment strategies employ multiple sub-advisors to seek the desired diversification and risk characteristics. Mercer typically selects sub-advisors from a universe of investment managers rated highly by Mercer's manager research group. This group evaluates managers based upon both quantitative and qualitative factors, including:

• An assessment of the strength of the overall investment management organization
  
  

• Qualifications, credentials, and investment track record of the people involved in the investment process
  
  

• The appropriateness of the investment product and its composites
  
  

• Analysis of the investment manager’s investment philosophy and process, risk-adjusted performance, consistency of performance, and the style purity of the product

Manager selection and evaluation

Mercer's manager selection and evaluation due diligence process combines primary research with applied research. Additionally, our portfolio managers utilize state-of-the-art tools and techniques to constantly monitor and evaluate its investment strategies and underlying sub-advisors.

The Mercer portfolio management team:

• Evaluates a preliminary list of candidate managers
• Conducts applied research on suitable candidates and their strategies
• Analyzes various combinations of existing and candidate managers
• Conducts comprehensive on-site due diligence reviews with suitable candidates
• Determines allocations to each manager
• Meets monthly to review each team of managers
• Monitors portfolios daily, meets regularly with sub-advisors
• Reviews and maintains “reserve bench” of managers in each asset class

Investment monitoring

The Mercer portfolio management team is responsible for both the selection and ongoing monitoring of investment managers (sub-advisors) in the program.

On a daily basis, Mercer investment analysts monitor and evaluate the performance of sub-advisors, including the sub-advisors' compliance with the investment objectives, policies, and restrictions of the strategies.

On a weekly basis, the performance of each of the strategies and each of its underlying investment managers is reviewed to verify that the behavior of the portfolio is in line with expectations, given the styles of the sub-advisors and the performance of the capital markets.

On a monthly basis, formal investment team meetings are held to analyze the capital markets. Each of Mercer's strategies and the underlying investment managers are reviewed against this backdrop. Portfolio managers discuss both current managers and “reserve bench” candidate managers.

On a quarterly basis, the Mercer investment committee meets to review and establish portfolio positions. The investment committee also reviews intra-quarterly investment management decisions made by the portfolio management team.

Reporting and compliance

For institutional clients, an important component of our ongoing performance reporting program is compliance with the Statement of Investment Policy. There are two aspects to our compliance report – asset allocation relative to policy and investment manager compliance with guidelines. We continually monitor investment managers and the total portfolio in order to monitor and report upon policy compliance. Our systems enable us to aggregate individual manager portfolios in order to determine overall sector and stock exposure at the total fund and asset class levels.

Mercer portfolio managers meet on a quarterly basis with each investment manager in its program to discuss the portfolio, performance attribution, organizational/staff developments, and portfolio positioning in detail. In addition, the Mercer  investment team conducts periodic on-site manager visits to meet with portfolio management teams and/or to review operational procedures related to the program.

Our quarterly performance evaluations provide an executive summary that includes a review of Plan policy compliance, and highlights areas that may require further review or changes.

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Investment operations

Asset rebalancing and cash flow management

Institutional clients that invest across multiple strategies and subscribe to Mercer's  comprehensive investment program receive asset rebalancing and cash flow management services. Mercer investment professionals coordinate contributions and fund withdrawal activities between managers, custodians, clients, and other service providers. These services are combined with asset rebalancing activity directed by portfolio managers so that unnecessary transaction activities (and therefore, costs) are minimized.

Trust and custody services

Where desired, custody services are provided via an unaffiliated, leading global custodian. Mercer’s systems are tied into the custodian to ensure the seamless monitoring of client and fund information. Optionally, plan trustee and benefits payment services can be provided (through unaffiliated service providers) and offer further economies of scale and efficiencies in asset and liability management services provided by Mercer.

Integrated retirement services
Mercer Retirement Solutions™ Services

Mercer's investment products and services are also available as the asset management component of Mercer Retirement Solutions – a complete solution to your total retirement program from a global leader in retirement plan services. Mercer Retirement Solutions encompass:

Plan management

One of the world's foremost retirement consulting firm applies its depth and breadth of expertise to customize and deliver a plan management package for optimum retirement program efficiency.

Administration

Comprehensive recordkeeping and technology for defined benefit, defined contribution, personal retirement accounts, and other regional offerings.

Participant experience

Integrated employee communication and educational services in some geographic regions, delivered across all channels – in print, online, over the phone, and in person – for maximum impact on the employee experience.

The information in these webpages does not constitute legal, tax or financial advice nor should any investment or any other decisions be made solely based on the information contained herein. You should consult an attorney, tax professional or other qualified expert regarding your specific situation and circumstances.

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Services in the U. S. are provided by Mercer Global Investments, Inc.