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Has the GFC bumped ESG off the agenda?16 June 2009
A quick scan of newspaper headlines might suggest that the global financial crisis (GFC) has taken precedence over issues such as the environment, carbon or governance risk (ESG).
HRadio: UK defined contribution plan members turn to cash funds in turbulent market22 May 2009
Infrastructure - Still On Track, Proceed with Caution30 June 2009
The market for infrastructure equity funds grew exceptionally quickly between 2003 and 2008. In 2006, more than $20 billion of equity capital was raised, up from less than $5 billion in 2004. This was followed by another big year in 2007, when about $35 billion was raised. By the middle of 2008, there were an estimated 70 funds in the market seeking to raise $70 billion. However, the flow of capital commitments slowed sharply as the credit crunch took hold and only about $30 billion was raised in 2008.
Leading through unprecedented times10 June 2009
Managing Pension Plan Risk in Unprecedented Times3 June 2009
The recent downturn in financial markets has caused many pension plan sponsors to re-think their appetite for risk. That said, although some sponsors would like to reduce exposure to risky assets, they are concerned about sacrificing the potential for enhanced returns as markets hopefully improve in the future. In this web briefing, Mercer specialists discuss: risks facing pension plans, strategies for reducing those risks, while still retaining some potential for reasonable returns and timing of the implementation of risk reduction strategies.
Mercer sees defined contribution account balance recovery as a significant challenge for near retirees18 June 2009
To illustrate the predicament faced by near retirees, Mercer, a leading provider of benefits administration, analyzed its defined contribution participant data for those under 30 years of age and those 55 and older. Since the end of 2007 through April 30, 2009, those participants under the age of 30 have seen an average account balance gain of 24%, while those 55 and over have lost an average of 16%. This generally can be attributed to the fact that younger participants with smaller balances can more quickly recover their losses through new contributions and potentially a more aggressive investment strategy. In contrast, near retirees face a huge challenge in accumulating adequate savings for retirement in the midst of recent economic volatility.
Mercer wins gold in real estate awards8 June 2009
Mercer has won the gold award for investment consultancy at the 2009 Investment & Pensions Europe Real Estate Awards. It is the third time in the last four years that Mercer has won this category.
Opportunity Knocks? Treasury Asset-Backed Securities Loan Facility (TALF)29 May 2009
In an effort to revive the credit markets and get consumer lending started again, the Federal Reserve has created a special program that offers several unique incentives for investors to encourage them to purchase asset backed securities. This program - the Treasury Asset-Backed Securities Loan Facility (TALF) - encourages the purchase of these securities by loaning investors most of the money needed to purchase the securities.
Superannuation fund liquidity: The elephant in the room16 June 2009
A lot has been said about the liquidity issues facing many superannuation funds in Australia. From media speculation that some funds’ illiquid unlisted assets have not been appropriately valued, to reported problems in meeting currency forward contract settlement or foreign currency-denominated committed capital calls. Even managing higher levels of member switching to cash has in some cases been problematic.
The Approaching Prospects in Leveraged Loans30 June 2009
Many experienced fixed income managers believe that the leveraged loan space now commands heightened investor consideration following massive spread widening and falling loan bids in 2008. The attractive yields are compensation for the risk of continued price deterioration due to accelerating defaults, structural issues in CLO capital structures, the unwinding of leveraged hedge fund vehicles, and expected refinance risk through fiscal year 2015. Mercer is a leading global provider of investment 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 fiduciary management.
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Addressing investors need to understand the carbon risk in their current portfolio to ensure that it is effectively managed and give due consideration to emerging carbon related investment opportunities.

CHALLENGE: Companies today find themselves walking a fine line. They need to manage costs aggressively, but they also need to take actions now that will ensure superior levels of performance as business conditions improve.