Welcome to the first edition of Mercer’s new series, iRFM interConnections. We will be providing you with regular issues of this publication to keep you updated on current issues related to the management of financial risk in pension plans, with a focus on the major policy levers that control financial risk – investments, contributions and benefits design – as encapsulated in Mercer’s Integrated Retirement Financial Management (iRFM) framework. We will address issues related to strategy, implementation, and ongoing management that are essential in developing and executing an effective risk management program.

There is no doubt that considerations of financial risk are increasingly important in managing pension plans. The reasons are not hard to find:  reduced smoothing mechanisms for calculating contributions and financial statement entries, ongoing turmoil in financial markets, and the demographic maturing of plans.

This first edition focuses on liability-driven investment (LDI), which has become a buzzword in the marketplace and covers a wide variety of approaches and practices. We have identified 10  top myths surrounding the fluid concept that is LDI, and uncover what’s really behind each.

Should you have any enquiries, please do not hesitate to contact the following Mercer consultants for assistance

Mercer Consultant	Location	Telephone
Robert Burke	New York	+1 212 345 7437
Yannick Gagne	Newport Beach	+1 949 222 1369
Jerry Hopper	Philadelphia	+1 215 982 4230
Scott Jarboe	Washington DC	+1 202 331 2523
David Kelly	New York	+1 212 345 3972
Alan Parikh	Chicago	+1 312 902 7574
Joe Snell	Pittsburgh	+1 412 355 8860

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.