Strong growth in 2012 across all market segments including DB, DC and Endowment & Foundations
Mercer posted very strong growth across it delegated investment solutions in 2012. Mercer’s global assets under management reached $69.8 billion as of December 31, 2012, an increase of 31.7% from the $53 billion a year ago. In the US, Mercer’s delegated assets grew by $7 billion in 2012.
The growth experienced in the delegated investment solutions segment was broadly based. Mercer secured new delegated mandates across a broad spectrum of clients in the US including DB and DC pension funds and in the Endowment and Foundation sector.
Several factors enabled Mercer to achieve substantial growth in 2012. These included the challenge of underfunded DB pension plans – at year-end 2012 the S&P 1500 DB pension plans sponsors reported their highest year-end pension deficit ever – and the quest for return that is driving many of endowment and foundation clients as they struggle to meet spending commitments. Market events increasingly require quick and professional investment decisions, Mercer believes.
“In a market affected by a low interest rate environment, uncertainty in the Euro Zone, volatility in the equity markets, and disparate returns in alternatives, many institutions are realizing that they need an investment partner who can quickly adjust their portfolio to market changes while adhering to best practices in investment governance,” said Tom Murphy, Mercer’s head of fiduciary management in the United States. “Clients have been attracted to Mercer because our delegated solutions allow them to leverage our global investment research and portfolio implementation to complement their in-house staff and investment committee structures.”
Mercer is a global consulting leader in talent, health, retirement and investments. Mercer helps clients around the world advance the health, wealth and performance of their most vital asset – their people. Mercer’s 20,000 employees are based in more than 40 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy and human capital. With 52,000 employees worldwide and annual revenue exceeding $10 billion, Marsh & McLennan Companies is also the parent company of Marsh, a global leader in insurance broking and risk management; Guy Carpenter, a global leader in providing risk and reinsurance intermediary services; and Oliver Wyman, a global leader in management consulting. For more information, visit www.mercer.com. Follow Mercer on Twitter @MercerInsights.