Mercer believes that the alternative investment industry needs improvement and better supervision. It is an important industry for all investors, but not all fund managers offer operationally sound products and treat investors fairly. The paper "Improving and Regulating the Alternative Investments Industry" describes where improvement is needed, and the role industry initiatives, investor pressure and regulation should play in achieving and maintaining minimum standards across the industry.

The paper specifically covers Mercer's response to the European Commission’s draft Directive on Alternative Investment Fund Managers (AIFM). While we believe this directive is based on some sound principles, unfortunately, the side-effects as currently worded could be materially detrimental to investors. When re-drafting the directive, we urge the European Commission to listen to the concerns of investors who want an alternative investments industry that maintains high professional standards, but who also need choice and value for money.

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Mercer is a leading global provider of investment consulting services, and offers customized guidance at every stage of the investment decision, risk management and investment monitoring process. We have been dedicated to meeting the needs of clients for more than 30 years, and we work with the fiduciaries of pension funds, foundations, endowments and other investors in some 35 countries. We assist with every aspect of institutional investing (and retail portfolios in some geographies), from strategy, structure and implementation to ongoing portfolio management. We create value through our commitment to thought leadership; world-class, independent research; and top-notch consultants with local expertise.