Minimizing and managing risk in portfolios 

Risks faced by investors

Challenges

  • An increasingly complex and uncertain market with lower returns
  • Operational inefficiencies and liquidity challenges
  • High transaction fees and other costs
  • Incorporating ESG considerations
Risk is an inherent part of any investment strategy – and for those with investment goals, it needs to be managed carefully. But along with investment risk, institutional investors need to be alert to market volatility, low interest rates, shifting liabilities and regulatory change. The key to managing these risks is to adopt an agile strategy and process, providing the potential to swiftly react to market conditions and seize investment opportunities that are in line with your overall strategy, while managing your exposures and costs.

How to control your risks

  • Do your research

    It’s important to have access to the latest insights, trends, analytics and manager research to help you manage risks and make informed decision. We provide the latest updates at your fingertips through our global investment research and our forward looking manager research platform MercerInsight®

  • Get some advice

    Speaking to an expert can help you decide the best way to convert insights into achievable, desired outcomes. We can advise you on your investment strategy, manager selection and oversight, asset allocation, portfolio construction, responsible investing and risk management.

  • Explore investment solutions

    Implementing an investment solution such as delegating or outsourcing your investments can help you cut costs, reduce risk, use fewer resources while building resilient portfolios. We partner with clients to design a complete risk and governance solution with embedded expert advice and access to highly rated managers and potentially lower overall costs.

How we help clients pursue success, together

Asset pool de-risking

We work with institutional investors like defined benefit (DB) plans, insurers, wealth managers and endowments and foundations on their risk strategy. For example, we work with DB pension plans to de-risk for portfolios through a four stage process that involves designing and implementing what we believe to be the optimal investment strategy.

If a client’s investment program is underfunded, we would work with them to build a strategy that allows for greater diversification and increased hedging. We also continuously look-out for and capture opportunities to de-risk. We are there for the client throughout the whole journey as they work toward their desired outcome.

Design the right journey

Featured solutions for risk management

Mercer provides tools, advice and solutions to help you understand and manage your program’s risks, so that you can spend less time worrying about that, and more of your time focusing on your core business.

  • Mercer pension risk exchange®

    A monitoring and pricing platform with an online marketplace for organizations and trustees considering a bulk annuity transaction. Benefit from direct access up-to-date insurer pricing and cost of an annuity transaction.

    Learn more

  • Mercer’s dynamic de-risking solution

    This solution provides a framework to define your target destination, along with a roadmap to help you get there. The roadmap helps you to react to market conditions and continue on the path to your desired outcome.

    Connect with a consultant

  • MercerInsight®

    A cloud-based platform for institutional investors and investment managers to gain access to insights from more than 200 Mercer researchers and analysts across a full spectrum of asset classes.

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  • Investment solutions

    By implementing an investment solution, you can free your team to focus on higher value strategic priorities while an expert helps you with the investment, governance and risk management responsibilities.

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  • Mercer Sentinel

    Focused on risk assessment and monitoring, we help investors better manage the implementation of your investment activities associated with holding, trading, and servicing investment portfolios.

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Investment insights

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