Financial News Investment Consultant of the Year award

Mercer adapts to meet challenge of tougher competitive environment

Life as an investment consultant to pension funds has become increasingly challenging.

Large defined-benefit schemes are in long-term decline and their requirements are evolving as they enter into a long run-off period for their liabilities. And expertise on specialist areas such as alternative asset classes and derivatives is available from new participants, including investment banks and start-ups.

To cope with increasing competition and a changing environment, Mercer investment consulting - winner of this year's Financial News Investment Consultant of the Year award - has adapted its services.

Andrew Kirton , Mercer's head of investment consulting for Europe*, said: "We are on the ground in 11 countries and doing business in at least 11 more. Business has grown across the board."

Kirton identified several themes that Mercer has sought to follow or exploit. One is to extend its capabilities from being a pure adviser, for example, by giving its largest clients electronic access to its global investment manager database.

A development this year was to set up a financial strategy group as a partnership between investment consulting and the retirement actuarial division. This group aims to give what Mercer calls complex trustee clients advice as links between scheme funding, actuarial matters and investment become more explicit.

Kirton said: "An appropriate investment strategy has to be integrated with funding, particularly for multi-country companies that have to deal with different pension systems. That is a specialism in itself."

* Andrew Kirton is now global head of Mercer's investment consulting business.

 2007 Financial News awards article

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GLOBE Awards for Environmental Excellence

Mercer investment consulting business won the Capital Markets Award for Sustainable Investment and Banking, The GLOBE Foundation's 6th annual GLOBE Awards for Environmental Excellence.

These annual environmental awards recognise Canadian companies that have taken a proactive approach to unique environmental and sustainability challenges, while still maintaining strategic excellence in business practices. Mercer's responsible investment team was honoured for its dedication to developing intellectual capital about the integration of environmental, social and corporate governance (ESG) considerations within investment decision making.

“For years, socially responsible investment and corporate environmental performance were the domain of ethical funds or special interest investors,” said Jane Ambachtsheer , Global Head of Mercer's Responsible Investment business. “However, with the renewed focus on climate change, ESG issues are garnering more attention from the general public and mainstream investors than ever before.”

Working with clients in Canada and abroad, Mercer helps to develop and implement responsible investment policies, select investment managers and monitor performance within an ESG framework. Mercer investment consulting business worked as consultants to the United Nations on the development of the Principles for Responsible Investment, which were launched in April 2006 The Principles have now been signed by 180 institutional signatories from around the globe, representing in excess of $8 trillion in assets under management.

For further information, please visit the GLOBE awards website.