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Investment consulting, global investment update

Contact: Marina Zoraya
Tel: +44 (0) 20 7178 3282


Investment update - July 2009


 

IN THIS ISSUE
Carbon risk and carbon trading
Has the global financial crisis bumped ESG off the agenda?
HRadio: UK defined contribution plan members turn to cash funds in turbulent market
Infrastructure - Still On Track, Proceed with Caution
Leading through unprecedent times
Managing Pension Plan Risk in Unprecedented Times
Mercer sees DC account balance recovery as a significant challenge for near retirees
Mercer wins gold in real estate awards
Opportunity Knocks? TALF
Superannuation fund liquidity: The elephant in the room
The Approaching Prospects in Leveraged Loans
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Important issues for investors globally

We are pleased to welcome you to the July 2009 edition of Mercer's investment consulting e-news update.

 

Special editorial edition

Carbon risk and carbon trading: Investment considerations

 

Carbon risk and carbon trading: Investment considerations coverAddressing 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.

 

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White paper contact

For further information regarding this white paper please contact Marina Zoraya

Phone icon +44 (0) 20 7178 3282

 

 

 

 

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).

 

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HRadio: UK defined contribution plan members turn to cash funds in turbulent market

22 May 2009

 

Go to latest voice recording with Simon Pearse
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As chaos continues in the markets, more of the United Kingdom's defined contribution plan participants are turning to cash funds. Simon Pearse of Mercer UK explains the ins and outs of cash funds, the types of investors attracted to them, and other important considerations for investors and plan trustees and sponsors.

 

Video icon Go to recording (duration 10:28)


 

Infrastructure - Still On Track, Proceed with Caution

30 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.

 

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Leading through unprecedented times

10 June 2009

 

Leading through unprecedented times compassCHALLENGE: 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.

KEY QUESTION: How do we manage the workforce and its related financial costs in ways that enhance effectiveness and efficiency without compromising prospects for future growth?

 

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Managing Pension Plan Risk in Unprecedented Times

3 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.

 

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Mercer sees defined contribution account balance recovery as a significant challenge for near retirees

18 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.

 

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Mercer wins gold in real estate awards

8 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.

 

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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.


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Superannuation fund liquidity: The elephant in the room

16 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.

 

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The Approaching Prospects in Leveraged Loans

30 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.


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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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