REAL ESTATE BOUTIQUE

HOW WE CAN HELP YOU

Mercer’s real estate boutique is responsible for research and advice in all aspects of real estate investment, including:

• Structure of real estate allocations
• Research on real estate investment trends and opportunities
• Due diligence on managers and strategies
• Performance reporting
• Due diligence and assistance with fee and mandate negotiation
• Ongoing monitoring of investment managers and client portfolios

Mercer pursues a two-pronged approach to working with clients in regards to their real estate allocation – we use both manager research and investment consulting experience to arrive at optimal solutions for clients.

• 13 average years of financial services industry experience
• 40 searches conducted in 2012, placing $2 billion globally
• More than 1,450 real estate strategies on Mercer’s Global Investment Management Database (Mercer GIMD^TM ), with 29 product categories
• Cover both public (listed) and private (unlisted) real estate

For the more complex and challenging demands, the direct involvement of boutique professionals is possible. To illustrate, recent examples include:

US PENSION FUND

Mercer analyzed and restructured the real estate investment program of this large US public fund client. They believed the fund was under allocated to real estate but was also concerned about investing in the current market environment. Their prior real estate investing had utilized only one type of fund. We provided educational services to the board including discussing the risks and rewards of diversifying real estate.

AUSTALIAN PRIVATE AND GOVERNMENT SUPERANNUATION FUNDS  

Mercer conducted a comprehensive review of the client’s investment strategy – including investment objectives, number of investment options and strategic asset allocation. The asset class structuring involved a review of types of investments, construction of strategy combinations and risk budgeting. A comprehensive strategy was produced which incorporated the client’s goals and objectives. Manager selection exercises were conducted to implement the strategy. Further a health check is conducted annually which includes analysis against investment objectives, nominated peers and best practices.

SWISS AND UK PENSION FUNDS

Mercer provided advice to the client to assist in determining if a global listed investment strategy was appropriate for the plan. After an educational session, the client determined to proceed with the implementation of the strategy. A manager selection exercise was conducted to implement the new allocation and Mercer assisted with all aspects of the selection exercise.