Unlocking the power of your portfolio through innovative ideas
Alternative investments can bring new ideas and innovation to portfolios. When added to a traditional asset allocation mix, alternatives could provide diversification1, lower volatility and could potentially offer higher levels of, or predictable income. Allocating to these strategies requires experience and knowledge, along with a strong capacity for research and ongoing due diligence. We believe understanding and having an established relationship with highly rated alternatives managers is one of the keys to gaining access2. Alternative can be allocated across public or private markets. We believe private markets hold significant opportunities for institutional investors. Private market managers operate strategies across private equity, debt, infrastructure and real estate, which function differently to traditional asset classes. These strategies add a distinct and different return profile to institutional portfolios, which could make them attractive to investors with long-term horizons. Learn more about alternatives, and how we can help below.
Diversification
With low correlation to traditional asset classes, alternatives can help diversify your portfolio.
Potentially better returns
Alternatives have the potential to offer higher returns than traditional investments. These should be addressed
Cash flow management
Alternatives may offer higher and more regular yields than traditional investments—especially during periods of low interest rates.
Private markets are becoming increasingly popular as investors shift parts of their portfolios away from publicly traded assets in order to diversify their risk and return drivers. The opportunities in private markets span many sectors and regions, each offering something different to investors. Yet they all share the qualities of being shielded from much public market volatility and having the potential to earn a premium by being held over the long term.
However, accessing managers that invest in private markets can be challenging for some investors – 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. Our dedicated alternatives group of over 180 professionals across 20 global locations, work on $200bn of alternatives advisory mandates for clients - $21bn of assets being under direct implementation.3
Our alternative solutions are broad and deep, enabling our clients to create a portfolio that suits their risk tolerance and investment objectives. Drawing on our extensive global resources, our specialist team offers our clients a bespoke service, supported by extensive risk management and rigorous operational due diligence. We believe this helps assure clients to invest with the confidence that their portfolios are in experienced hands.
We work with you to determine the level of service you require along with your detailed investment strategy and tailor a solution that fits your needs.
Make informed investment decisions with our cloud-based research platform, MercerInsight®. Sophisticated and intuitive, MercerInsight gives institutional investors easy access to a wide range of investment data — all from your desktop.
Gain global reach and leverage local resources. Our Alternatives group offers the personal service of a specialized boutique, combined with the resources of a global consultancy.
Our risk management solution focuses on evaluating non-portfolio risks, primarily those associated with investment operating models, operations and execution. Importantly, we have implemented a reporting structure that keeps you informed about your investments every step along the way.
Our operational due diligence specialists work closely with our manager research team and conduct independent evaluations to provide an added layer of governance. Dedicated resources keep you informed about industry best practices, including an independent review within investment manager due diligence processes.
Access information and policies regarding the Sustainable Finance Disclosure Regulation (SFDR) for our Luxembourg based Private Markets funds
We’re eager to speak with you. Please provide your details below.
Important information
1 Diversification does not ensure against market loss
2 References to Mercer shall be construed to include Mercer LLC and/or its associated companies.
3 As at 31 December 2019
© 2021 Mercer LLC. All rights reserved.
This content may not be modified, sold or otherwise provided, in whole or in part, to any other person or entity without Mercer's prior written permission.
Mercer does not provide tax or legal advice. You should contact your tax advisor, accountant and/or attorney before making any decisions with tax or legal implications.
This does not constitute an offer to purchase or sell any securities.
The findings, ratings and/or opinions expressed herein are the intellectual property of Mercer and are subject to change without notice. They are not intended to convey any guarantees as to the future performance of the investment products, asset classes or capital markets discussed.
For Mercer’s conflict of interest disclosures, contact your Mercer representative or see http://www.mercer.com/conflictsofinterest.
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.
Information contained herein may have been obtained from a range of third party sources. While the information is believed to be reliable, Mercer has not sought to verify it independently. As such, Mercer makes no representations or warranties as to the accuracy of the information presented and takes no responsibility or liability (including for indirect, consequential, or incidental damages) for any error, omission or inaccuracy in the data supplied by any third party.
There are substantial risks associated with investments classified as alternatives investments. Investors should have the ability, investing sophistication and experience to bear the risks associated with such investments.
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.
Africa
