This content is for institutional investors and for information purposes only. It does not contain investment, financial, legal, tax or any other advice and should not be relied upon for this purpose. The materials are not tailored to your particular personal and/or financial situation. If you require advice based on your specific circumstances, you should contact a professional adviser. Opinions expressed are those of the speakers as of the date of the recording, are subject to change without notice and do not necessarily reflect Mercer’s opinions.
Latest episodes
The level of portfolio protection from high-quality debt instruments that generations of investors have relied on is no longer there. Investors need more tools in the toolkit. Gold and some currencies can protect well, but are subject to idiosyncratic risks and are noncontractual; their protective capacities are essentially market conventions or rules of thumb. Contractual approaches to protection, specifically options on equity indices or on market volatility could also be warranted today, though these can raise issues over the cost of carry (spend on option premiums), which generates a drag on returns in persistently buoyant markets.
Given the need to manage a range of exposures dynamically, there is a role for hedge fund strategies, including macro managers, which may be better equipped at managing through a transitionary period. Furthermore, given the potential for higher correlation between equities and bonds, reducing exposure to traditional beta in favor of strategies that are expected to generate returns regardless of market direction has merit.
In this episode, Deborah Wardle is joined by Dave McMillan and Dr Sushil Wadhwani, Chief Investment Officer at QMA to discuss some of the key questions surrounding the hedge fund investing landscape at the moment and in doing so, look to answer the question of whether hedge funds staging a comeback?
In this episode, Angelika Delen is joined by impact investing expert Charly Kleissner, PhD to discuss the difference between impact and deep impact investing, the importance of transparency and how investors need to work together to change finance as opposed to just financing change.
Charly Kleissner is an impact investor. He believes that the real meaning of wealth is to make a positive contribution to humanity and the planet. He is a leader of the deep impact movement which is not only treating the symptoms of our failing economic system, but its root causes – with a level of awareness and consciousness that is non-anthropocentric. He sees impact investing not as an intellectual exercise, but as an expression of who he really is.
Previous episodes
April 2022
Why is water, essential to life on earth, not more central to investors’ decision making?
In this episode dedicated to Earth Day, Mark Longbottom is joined by Helga Birgden and John Elmore-Jones to discuss their latest research into the importance of water, as a critical resource, when considering investments. They explore why investment into protecting water as core to people and the environment needs an urgent reset, and they outline what approaches investors can take to address the risks of overlooking the importance of investing in our planet.
Mercer has recently been working in partnership with the Valuing Water Initiative, CDP and the Water Footprint Network on a project to increase water-related transparency and awareness among financial institutions.
March 2022
The Russia – Ukraine conflict continues to cause uncertainty for investors. Energy prices and Inflation continues to rise globally and the conversation has turned from transitory inflation to the possibility of stagflation.
Listen to Erin Lefkowitz and Rupert Watson as they discuss their outlook for interest rates, inflation and markets more broadly and the possible implications for portfolios.
March 2022
Bitcoin and Gold are often compared to one another with Bitcoin having even been referred to as “digital gold”. In this episode, Nick White, Matt Scott and our special guest Urs Bolt, discuss the similarities, differences, and obstacles Bitcoin faces to make it mainstream amongst institutional investors.
Urs Bolt has 30 plus years’ experience in the financial services industry, mainly in wealth management, investment banking and banking technology business. His core expertise is to develop and roll out new digital business platforms. Urs’ current focus is helping FinTech and WealthTech companies and financial service providers review/refocus business strategies.
Urs is also co-initiator of the Swiss Open Wealth Association with the goal to accelerate the development of new ecosystems in wealth management and private banking. Beside that he actively contributes to the progress of the Swiss and global ecosystem in crypto finance as an opinion leader and a passionate lecturer in ecosystems in crypto finance in post-graduate courses.
March 2022
The escalating conflict in Ukraine has resulted in far-reaching outcomes for financial markets and the global economy. Rich Nuzum, President of Investments & Retirement, Mercer, and Jo Holden, Global Head of Investment Research, discuss the conflict’s short and long-term implications for the real economy and for investment portfolios, what does this mean for energy prices, inflation and interest rates. They also provide a warm up session to our fast-approaching annual Mercer Global Investment Forum Europe on 28-29 March, and share sneak peaks of the key topics that will be covered. They explain how they find their own ideas for innovation, and the importance for investment professionals to gather as a community for shaping the global investments map. Moderated by Annabell Mathiesen-Siem, Mercer Norway CEO.
March 2022
The Russia – Ukraine conflict is causing a lot of uncertainty for investors and is an evolving situation. The implications from the conflict and subsequent sanctions from global leaders are far reaching and yet to be fully understood. Join Susan McDermott, US Strategic Research Director and Rupert Watson, Head of Asset Allocation, as they discuss the potential impact on inflation, energy prices, trade and markets more broadly.
February 2022
The resource transition is a term that refers to the sweeping changes, the world needs to make in a way that it extracts uses and disposes of its resources. Resources that range from energy to minerals to food and water and biodiversity. Carbon emissions have understandably been a key focus for attention to avoid or diminish the climate crisis. However, a wider lens is needed to sustainably service the food, water, housing, labor and transport needs of almost eight billion people. Biodiversity, adequate freshwater supplies and topsoil management are needed for food security; minerals for electric vehicles; and energy from sources such as nuclear and gas, given the intermittency of renewables. Put simply, a resource transition is needed, not simply an energy transition.
To discuss these challenges, Nick White Global Strategic Research Director, Mercer is joined by our 2 guest speakers form Impax Asset management. Chris Dodwell, Head of Policy and Advocacy, with over 25 years’ public and private sector experience in climate change, sustainable energy and environmental policy and regulation and David Li , Senior Portfolio Manager who co-manages both the Asian Environmental Markets Strategy and Asian Opportunities Strategy.
February 2022
Advisors and their clients need to be adaptable to the challenges that lie ahead. Mercer has identified five areas for financial intermediaries to consider – areas we believe are critical for long-term success.
Read the top considerations for financial intermediaries in 2022 paper here.
Take the global wealth management survey here.
January 2022
Endowments and foundations are facing an environment of rich equity valuations, ultra-low fixed-income yields, and newly awakened inflation, coupled with concerns on environmental and societal problems.
In this episode our not for profit specialists discuss the range of challenges and opportunities we believe endowments and foundations should be thinking about in 2022, and crucially how they can look to protect and position your investment assets.
Read the top considerations for endowments and foundations in 2022 paper here.
Take the global not for profit survey here.
December 2021
Climate change, social upheaval and global instability are inescapable for us as a society - but what can we do as investors?
In this in-depth, two part podcast, we speak to a distinguished behavioural scientist Dr Sweta Chakraborty, who explains how investors can cut through the - sometimes distressing - noise to see where our capital allocations can make a real difference and help create a better world for all of us. Investors cannot just think about the here and now; they must consider the issues most likely to drive future financial, social and political developments in a way that allows them to take the decisions needed to meet their objectives. Through consideration of these key trends and challenges, we believe investors stand the best chance of long-term success.
Dr. Sweta Chakraborty is a risk and behavioural scientist whose work is motivated by the need for clear and credible communication to urgently and proactively manage the risks that threaten human security and well‑being. With her absolute commitment to evidence‑based decision‑making, she helps policy‑makers and private sector organisations understand global risks and create clear strategies to manage them.
Sweta is the head of the Top Tier Impact Policy Action Unit where she oversees global scientific consensus building for science and tech policy advising. She is also the U.S. Representative for “We Don’t Have Time,” the Sweden‑based tech start‑up that launched Greta Thunberg to viral global renown.
December 2021
Climate change, social upheaval and global instability are inescapable for us as a society - but what can we do as investors?
In this in-depth, two part podcast, we speak to a distinguished behavioural scientist Dr Sweta Chakraborty, who explains how investors can cut through the - sometimes distressing - noise to see where our capital allocations can make a real difference and help create a better world for all of us. Investors cannot just think about the here and now; they must consider the issues most likely to drive future financial, social and political developments in a way that allows them to take the decisions needed to meet their objectives. Through consideration of these key trends and challenges, we believe investors stand the best chance of long-term success.
November 2021
The Covid-19 crisis dug a deep economic hole in 2020. If 2021 was the year when the hole was filled, 2022 should see building work commence on the freshly levelled ground. In practice, the recovery has not been as straight forward as that metaphor might suggest. The re-imposition of restrictions across many large economies weighed on global growth during the first quarter of the year. The economic reopening unleashed huge pent-up demand, leading to a strong pick-up in economic activity. Although some of that economic momentum was lost going into the end of the year, on the back of supply-chain disruptions, high energy prices and weaker growth in China, we believe 2022 should see the economic recovery continue.
November 2021
Substantial and profound changes are rapidly reshaping the world as we know it, with significant implications for investors. This vibrant re-imaging can be encapsulated in a single word: Metamorphosis.
Investors cannot just think about the here and now; they must consider the issues most likely to drive future financial, social and political developments in a way that allows them to take the decisions needed to meet their objectives. Through consideration of these key trends and challenges, we believe investors stand the best chance of long-term success.
September 2021
US Interest rates: where to from here?
With the Fed likely to start tapering their bond purchases this year, attention will soon turn to when they will raise interest rates and how high they will get. Will rates stay at exceptionally low levels or might we see the sort of levels we saw before the Great Financial Crisis?
Is it Japan’s time to shine?
Japanese equities have been unloved for a long time, but is the tide turning? The outlook for the economy doesn’t seem to have changed enormously, but some investors are becoming more optimistic on the outlook for Japanese equities. We’ll discuss the reasons why or whether investors should avoid.
The High yield trade
Credit spreads are very tight. Does this mean returns are likely to be poor or will low default rates and other factors support the asset class?
August 2021
How do investors move from curiosity to conviction when it comes to increasing diversity in their portfolios?
Our panel will discuss how LPs could achieve greater diversity, whether based on portfolio requirements, board demands, or the opportunity set. To “add diversity,” investors must not only answer important questions, they must know what those important questions are. We will discuss how to start the crucial conversations around gender and racial equity necessary for creating a diverse portfolio.
Is Diversity and inclusion different to ESG?
August 2021
Institutional investors, in growing numbers, are announcing their aims to reduce portfolio emissions to net-zero, with almost half of global assets estimated to be pledged to meet climate change goals.
The drivers are two-fold: the near-term risks and opportunities presented by the low-carbon transition already underway, plus the expectation that a 1.5°C climate scenario will allow investors to consistently meet return objectives over multiple decades.
But behind the flurry of recent announcements to set alignment targets, how is investment in the transition tracking? Will pledges be implemented and what happens if not? What approaches are investors adopting? What’s working and what obstacles remain?
July 2021
In this episode, Rupert is joined by colleagues Elizabeth Paine and Matt Scott to discuss developments in the world of cryptoassets and the wider digital ecosystem they underpin including decentralized finance.
Whilst it is tempting to dismiss most or all of the thousands of cryptoassets and their use cases as being part of a very old story, the get rich quick scheme, Matt and Lizzie will attempt to convince Rupert that there may indeed be some flowers on the dungheap.
As well as discussing the potential for upside in these assets, they will also discuss recent challenges to cryptoassets, including regulatory action and responsible investment concerns.
June 2021
Equities have come a long way over the last 15 months with some non-tech companies at last outperforming popular technology names. Rupert Watson, will be chatting with Larry Vasquez and Jan-Hein van den Akker, about whether this will continue and discuss the implications of recent signs of inflation and the possibility of higher bond yields over the next few years.
June 2021
Global systemic risks could significantly influence investor returns and long-term objectives in both positive and negative ways. Investors should understand what these risks are, along with the opportunities they may also bring, and implement an efficient strategy to integrate them into their portfolios.
Join our guest speakers, as they discuss their findings from our recent white paper - Trendsetters: Transformational Investment Practices of Advanced Investors, and how we developed a framework for addressing global systemic trends that investors can use to benchmark their progress against their peers.
May 2021
The focus on diversity, equity and inclusion within the workplace has been increasing for several years but has been accelerated by Covid. Hear why it is important, how we include it in our managers research and how each of us as individuals can make a difference.
April 2021
The Chinese economy is now entering into a new phase of development that we believe will help it become a moderately prosperous nation by 2035 and to achieve full modernisation by 2050. We assess the opportunities and challenges of this transition and explore what this means for global investors and capital markets.
March 2021
Inflation fears are rising. After 10 years of inflation being too low that might actually be good news. But what are the implications for bonds, equities and portfolio construction more generally?
Niall O’Sullivan (EMEA & Asia CIO) and Nick White (Global Strategic Research Director) join Rupert Watson to discuss their views on the topic on every investor’s lips.
February 2021
Join Rupert Watson and Susan McDermott as they discuss the transition from the Trump to the Biden administration and what effect this might have on climate change, the China/US relationship. They’ll share their views on whether they see opportunities in Bitcoin and China in addition to sharing Mercer’s latest house views and what this means for markets more broadly.
Africa
