Acquisition supports Mercer’s efforts to help Japanese institutional investors make and implement better investment decisions by providing strategic investment advice bundled with delegated implementation
Mercer, a global consulting leader in advancing health, wealth, and career, and a wholly-owned subsidiary of Marsh & McLennan Companies, Inc. (NYSE: MMC), today announced it has acquired BFC Asset Management Co., Ltd. (“BFC”), one of Japan’s leading independently owned multi managers, focused on alternative investment strategies. The acquisition strengthens Mercer’s presence in Japan and enhances the firm’s ability to address the growing alternative investments needs of Japanese institutional investors. Terms of the agreement were not disclosed.
“BFC is a truly client centric firm and one of Japan’s successful providers of alternative investment solutions focusing on hedge fund and private equity strategies. They are an ideal complement to Mercer’s nearly 40 year history of strength and success in the provision of strategic investment advice in Japan,” said Tatsuya Kamoi, CEO Japan and Far East Zone for Mercer. “The combination of our firms will ensure Japanese investors have access to world class delegated investment solutions, including a spectrum of traditional and alternative investments, research and advice capabilities.”
BFC Asset Management Co., Ltd. (“BFC”), established in 2006, specializes in investing in performance-enhancing solutions to deliver positive absolute returns to well-diversified portfolios, while reducing volatility and risk.
“For more than 10 years we have worked hard to deliver the highest client service, and today’s announcement will enable us to continue to deliver on this commitment,” said Noriyuki Kawana, Chairman and Chief Executive Officer, BFC. “We will be able to further support our clients based on Mercer's world class investment manager research across all asset classes and strong delegated implementation capabilities. Mercer’s powerful resources will further empower our ability to deliver quality client solutions across Japan – which remains our highest priority.”
The global investment environment has become ever more challenging with ultra-low bond yields, high equity valuations and greater financial market complexity. The demand for new investment thinking, more sophisticated solutions and better governance among investors remains prominent.
In Japan, institutional investors are diversifying away from government bonds into, among other areas, foreign markets and alternative investment funds. This acquisition will enhance the Mercer delegated solutions service offering for investors in Japan and expand the firm’s role as a leading provider of investment solutions across a wide range of alternative and non-alternative investments including long-short funds, private equity and debt, real estate, infrastructure, hedge funds, and commodities.
A statement of Mercer’s increasing commitment, strengthened market position and growing foothold in the Japanese market, this acquisition follows the establishment of Mercer Investment Solutions, Ltd. (MIS), the firm’s delegated solution business in Japan in May of 2015.
Mercer delivers advice and technology-driven solutions that help organizations meet the health, wealth and career needs of a changing workforce. Mercer’s more than 22,000 employees are based in 44 countries and the firm operates in over 130 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), the leading global professional services firm in the areas of risk, strategy and people. With more than 60,000 colleagues and annual revenue over $13 billion, Marsh & McLennan helps clients navigate an increasingly dynamic and complex environment. Marsh & McLennan Companies is also the parent company of Marsh,which advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions; Guy Carpenter, which develops advanced risk, reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities; and Oliver Wyman, which serves as a critical strategic, economic and brand advisor to private sector and governmental clients. For more information, visit www.mercer.com. Follow Mercer on Twitter @Mercer.
About Mercer Investment Solutions
Mercer is a leading global provider of investment consulting and solutions, dedicated to meeting the needs of clients for more than 40 years. Mercer works with pension funds, insurance companies, wealth managers, foundations, endowments, banks and other investors in some 24 countries. Mercer is the largest institutional multi-manager and investment adviser as well as the largest discretionary delegated solutions provider in the world with over $200B in assets under delegated management*. Mercer Investment Solutions Ltd. provides a wide range of single asset class and multi-asset solutions encompassing traditional and alternative assets. This delegated solutions offering gives asset owners or intermediaries the ability to leverage the intellectual capital developed through Mercer’s global resources and delegate the management of their asset pools to Mercer, to implement Mercer’s best investment ideas on their behalf.
*as of September 30, 2017
About BFC Asset Management
BFC is a solution provider that offers a wide range of customized solutions to Japanese pension plan sponsors. The customized solutions entail investing in alternative investments that deliver positive absolute returns along with well-delivered portfolios which reduce volatility and risk. BFC has an extreme passion for what we do as an independent team of highly skilled professionals with broad experiences in the Japanese pension asset management business. BFC is committed to offering the best solutions for Japanese pension plan sponsors by providing sophisticated products with high quality service. BFC believes that its code of conduct is always the “Best For Clients” – It is BFC’s primary goal.