Mercer Investment Beliefs
Every investor has unique objectives. Our proprietary tools, breadth of expertise, global scale and decades of experience will help you towards yours.

After over 40 years in the business, Mercer now advises clients who collectively have over $7 trillion in assets worldwide.* That makes us one of the largest investment advisors in the world. It also allows us to offer a comprehensive menu of investment tools, advice, and solutions to help you navigate complex capital markets.

But like anything, effective investment strategy comes down to smart thinking. Here are our beliefs that underpin our approach and drive investment success.

Client Objectives
 

  1. The client comes first.
  2. All clients are different, and their investment objectives vary.
  3. A fund exists to meet its obligations.
  4. The robustness and quality of the governance process are critical to success.
  5. We believe that a strong flow of intellectual capital can help address our clients’ objectives
  6. It is important to clearly identify environmental, social, and governance (ESG) motivations

Risk Management
 

  1. Asset allocation is the most important decision an investor can make.
  2. Risk and return are related.
  3. We believe in the merits of genuine diversification.
  4. Risk is a multi-dimensional concept.

Active Management
 

  1. We believe that active management is a skill and, as evidenced by our value-add analysis, our manager research process can improve the likelihood of identifying skilful managers.
  2. High conviction managers have a better likelihood of delivering meaningful alpha after fees.
  3. Even the most skilful of managers will experience periods of underperformance.
  4. Tailoring of mandates is undesirable.
  5. An appropriate benchmark or measure should be agreed upon.
  6. There are many different types of asset management organizations.

Dynamic Asset Allocation
 

  1. We believe that DAA can add value.
  2. Markets are behavioral in nature.
  3. Many valuation variables in investment markets are mean-reverting in the very long run.
  4. Implementing medium-term asset allocation views can add value, but it can also mitigate downside risk in a portfolio.

Operational Efficiency
 

  1. All investors should assess the quality of their investment operations and investment implementation, regardless of their size or complexity.
  2. We believe that clients should look to achieve the highest value for money spent.
  3. The overall investment returns can be enhanced by having a monitoring and governance framework that focuses on evaluating and quantifying investment efficiency.

Sustainability
 

  1. ESG risks and opportunities.
  2. Taking a sustainable investment view is more likely to create and preserve long-term investment capital.
  3. Active ownership helps the realization of long-term shareholder value.
  4. Accessing long-term streams of returns and long-term themes, rather than focusing on short-term price movements, can add value.

 

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