Managing Risk



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We help clients develop their risk management strategy and incorporate risk management into their governance processes

What We Do

We help clients develop their risk management strategy and incorporate risk management into their governance processes. We define “managing risk” broadly as we reduce risk through diversification and risk transfer option, while also helping clients stay aware of additional risks they are proactively taking in their portfolios. Because of this broad definition, we can customize solutions to your own specific situations and circumstances. By developing a holistic road map, we create a thoroughly integrated approach to managing risk so you can reach benchmarks and achieve objectives in the most efficient way.

 

Why Mercer

A wide view affords a broad perspective, so our footprint matters a great deal. Our 1,200 investment specialists in 48 offices around the world, we have the ability to review more than 24,000 strategies. This breadth of risk management scenarios exposes us to ideas and thinking that enable us to tailor solutions for your particular objectives and priorities.

 

How We Make a Difference

INQUIRY

We begin with exploration. What are your goals? How will your risk tolerance affect your timeline and your choice of asset classes? Evaluating the answers to questions like these helps us identify options for strategic asset allocation and where dynamically managing risk might work most effectively.

 

OVERSIGHT

While setting risk management strategy is an important first step, we believe it is also important to incorporate a risk philosophy into every phase of your governance process. Our extensive research allows you to consider and select managers that can best implement the investment plan. Ongoing monitoring and performance evaluation keep you in touch and in control. At the same time, you can turn to us for specialist advice about custodians, operations, and responsible investing.

2014 GLOBAL INVESTMENT FORUMS

 

 

 

Entering the upswing? Charting a course for investment succcess

 

Find out more

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Working with our clients to manage risk for more than 40 years

The past decade has been a turbulent time for plans — and with liabilities exceeding assets, reduced funding levels are a real concern. Risk management is a necessity, but it can be difficult to know where to start.

 

With over 3,000 clients globally seeking advice, research, and a trusted partner, we understand the challenges you face and the complexities of your business. Our vast experience in working with many types of organizations and cultures makes us well placed to provide you with the support you need to manage risk. 

 

Surveys

 

 

Mercer's surveys are designed to help you and your firm better understand the dynamics of current markets, the performance of your investments, and the behavior of your investment managers. 

 

 

Asset Allocation

 

In this environment of large deficits and the need for diversification, plans need to get this right from the start, as asset allocation is instrumental to plan performance. Read about the latest trends around the world, understand their behaviou, and find out our predictions on the next favored asset classes. 

 

 

Global Manager Search Trends

From investment mandate hiring patterns and search trends, gain insight into what Mercer’s institutional clients around the world are doing.

 

Global Manager Search Trends annual report 

 

 

Global Fee Survey

 

With more than 25,000 asset management products from over 5,000 investment management firms, this survey looks at management fees globally — it’s a “must read” for those who want to better understand the science behind fees. 

 

 

2014 Strategic Themes and Opportunities

 

Strategic outlook: As major global investment markets advance from a strong 2013, Mercer has released two related research papers — Outlook for 2014 and Beyond and 2014 Strategic Themes and Opportunities — that assess the investment environment and suggest market opportunities. Together, they identify how investors can respond dynamically to changing market conditions and ensure that portfolios are robust to a range of economic outcomes.

MARKETS AREN'T ALWAYS FAIR

 

Read how Dynamic Asset Allocation can help level the playing field.

 

 


LOOKING FOR SELF-SERVICE RESEARCH AND ANALYTICAL TOOLS?

 

With access to Mercer’s tools, you can review analysis of investment research MercerInsight

 
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We can help identify the key issues and opportunities you are confronted with both locally and on a global basis and then formulate an investment objective to best meet your goals

Companies are increasingly seeking to better understand the impact of their pension plans on company financials. At the same time, pension plans are considering the use of more sophisticated markets instruments in conjunction with asset management products to manage the various risks they face.

 

We can help identify the key issues and opportunities you are confronted with both locally and on a global basis and then formulate an appropriate investment policy to best meet your objectives.

 

 

How Mercer Can Help

 

Pension risk is not only an issue for trustees but also has become a board room issue — and it can be difficult to manage. Connect with us to learn how applying integrated thinking can help solve the retirement challenges of your members, today and tomorrow.

 

 

Pension Risk Framework

 

Managing DB pensions is a complicated challenge for multinationals. Read how you can meet the challenge head on using Mercer’s Pension risk framework.

 

 

Operational Efficiency

 

Plans should also consider the non investment risks associated with investment operations and execution. Meet the Mercer team that focuses on very specific areas of noninvestment and service provider risk, and who can advise on custody, investment operations and execution, and risk management.

 

DB Risk

 

 

Meet some of our experts, as they share their tips on how to manage risk.

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Mercer consultants are experienced investors who will monitor and manage total risk on a qualitative basis, depending on the market environment

Risk Management

Risk management spans multiple areas, from investment operations to business and reputational risk. Return requires risk, but risk does not guarantee return. We therefore focus on understanding and managing the risks within your portfolio, seeking to harness the rewards associated with exposure to certain risk premia.

 

In our alternatives portfolios, we do this from “non-traditional” sources such as event risk, liquidity risk, complexity risk, legal process risk, catastrophe risk, and others. We also believe that a holistic risk management approach is essential to control overall investment risks (including operational, counterparty, and liquidity) within acceptable tolerances while measuring and understanding the diverse sources of risks in the portfolio. 

 

Our Compliance function, composed of 77 individuals globally, has primary responsibility for risk management within Mercer. It is worth noting that our Compliance function sits outside our lines of business and thus has separate reporting lines directly into the global head of Compliance. 

 

Our fiduciary business has a number of global and regional risk committees with ultimate responsibility for risk oversight. They are supported locally by dedicated, experienced professionals. 

 

In addition to risk tools that we use to monitor the levels of risk in your portfolio, Mercer consultants are experienced investors who will monitor and manage total risk on a qualitative basis, depending on the market environment — for example,  in times of extreme market stress, when risk systems tend to fail to accurately estimate risk and other factors, such as counterparty and liquidity risks, are heightened.

 

 

FIDUCIARY MANAGEMENT - EUROPE

 

Our solutions enable trustees to focus their time and skills where they matter most - establishing long-term strategic objectives and setting overall risk and return parameters.

 

Learn more

 


AUSTRALIAN MULTI-MANAGER

 

The bonds between Mercer’s five investment beliefs and our multi-manager portfolios are strong. Our beliefs drive the investment performance of our super options and other managed funds in Australia and around the world.

 

Learn more

CONTACT OUR SPECIALISTS

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ABOUT US

We help clients develop their risk management strategy and incorporate risk management into their governance processes

What We Do

We help clients develop their risk management strategy and incorporate risk management into their governance processes. We define “managing risk” broadly as we reduce risk through diversification and risk transfer option, while also helping clients stay aware of additional risks they are proactively taking in their portfolios. Because of this broad definition, we can customize solutions to your own specific situations and circumstances. By developing a holistic road map, we create a thoroughly integrated approach to managing risk so you can reach benchmarks and achieve objectives in the most efficient way.

 

Why Mercer

A wide view affords a broad perspective, so our footprint matters a great deal. Our 1,200 investment specialists in 48 offices around the world, we have the ability to review more than 24,000 strategies. This breadth of risk management scenarios exposes us to ideas and thinking that enable us to tailor solutions for your particular objectives and priorities.

 

How We Make a Difference

INQUIRY

We begin with exploration. What are your goals? How will your risk tolerance affect your timeline and your choice of asset classes? Evaluating the answers to questions like these helps us identify options for strategic asset allocation and where dynamically managing risk might work most effectively.

 

OVERSIGHT

While setting risk management strategy is an important first step, we believe it is also important to incorporate a risk philosophy into every phase of your governance process. Our extensive research allows you to consider and select managers that can best implement the investment plan. Ongoing monitoring and performance evaluation keep you in touch and in control. At the same time, you can turn to us for specialist advice about custodians, operations, and responsible investing.

2014 GLOBAL INVESTMENT FORUMS

 

 

 

Entering the upswing? Charting a course for investment succcess

 

Find out more

RESEARCH

Working with our clients to manage risk for more than 40 years

The past decade has been a turbulent time for plans — and with liabilities exceeding assets, reduced funding levels are a real concern. Risk management is a necessity, but it can be difficult to know where to start.

 

With over 3,000 clients globally seeking advice, research, and a trusted partner, we understand the challenges you face and the complexities of your business. Our vast experience in working with many types of organizations and cultures makes us well placed to provide you with the support you need to manage risk. 

 

Surveys

 

 

Mercer's surveys are designed to help you and your firm better understand the dynamics of current markets, the performance of your investments, and the behavior of your investment managers. 

 

 

Asset Allocation

 

In this environment of large deficits and the need for diversification, plans need to get this right from the start, as asset allocation is instrumental to plan performance. Read about the latest trends around the world, understand their behaviou, and find out our predictions on the next favored asset classes. 

 

 

Global Manager Search Trends

From investment mandate hiring patterns and search trends, gain insight into what Mercer’s institutional clients around the world are doing.

 

Global Manager Search Trends annual report 

 

 

Global Fee Survey

 

With more than 25,000 asset management products from over 5,000 investment management firms, this survey looks at management fees globally — it’s a “must read” for those who want to better understand the science behind fees. 

 

 

2014 Strategic Themes and Opportunities

 

Strategic outlook: As major global investment markets advance from a strong 2013, Mercer has released two related research papers — Outlook for 2014 and Beyond and 2014 Strategic Themes and Opportunities — that assess the investment environment and suggest market opportunities. Together, they identify how investors can respond dynamically to changing market conditions and ensure that portfolios are robust to a range of economic outcomes.

MARKETS AREN'T ALWAYS FAIR

 

Read how Dynamic Asset Allocation can help level the playing field.

 

 


LOOKING FOR SELF-SERVICE RESEARCH AND ANALYTICAL TOOLS?

 

With access to Mercer’s tools, you can review analysis of investment research MercerInsight

 

ADVICE

We can help identify the key issues and opportunities you are confronted with both locally and on a global basis and then formulate an investment objective to best meet your goals

Companies are increasingly seeking to better understand the impact of their pension plans on company financials. At the same time, pension plans are considering the use of more sophisticated markets instruments in conjunction with asset management products to manage the various risks they face.

 

We can help identify the key issues and opportunities you are confronted with both locally and on a global basis and then formulate an appropriate investment policy to best meet your objectives.

 

 

How Mercer Can Help

 

Pension risk is not only an issue for trustees but also has become a board room issue — and it can be difficult to manage. Connect with us to learn how applying integrated thinking can help solve the retirement challenges of your members, today and tomorrow.

 

 

Pension Risk Framework

 

Managing DB pensions is a complicated challenge for multinationals. Read how you can meet the challenge head on using Mercer’s Pension risk framework.

 

 

Operational Efficiency

 

Plans should also consider the non investment risks associated with investment operations and execution. Meet the Mercer team that focuses on very specific areas of noninvestment and service provider risk, and who can advise on custody,