Diversity, equity and inclusion (DEI) investment strategies
DEI investing is high on investors’ agendas
As part of a wider strategy to invest sustainably, integrating a DEI lens into your decision-making process allows you to align your portfolios with your organizational mission and values. It also positions you to achieve long-term sustainable returns and help drive change that could ultimately benefit us all.
Research shows that organizations exhibiting strong DEI credentials perform better. It's clear that a more diverse, equitable and inclusive work environment boosts innovation.
DEI is an important consideration in any sustainable investment strategy, but key challenges remain. Performing all aspects of the investment process takes significant resources. In particular, it takes time to identify and gain access to the best DEI managers. This is where we can help.
Our proprietary research and deep analysis of DEI issues launched in 2007. Today, our approach in this area is designed to unearth the most compelling opportunities that will best suit your goals while promoting positive change. No matter where you are on your DEI investment journey, we can help you define what diversity means for your organization. We can also show you how to integrate it within your portfolio and investment decision-making process.
Drivers behind the rise in DEI investments*
Common challenges associated with DEI investing
Three steps to integrate DEI into your investment portfolio
Define what diversity means to youDiversity means different things to different investors, so the first step is to define what it means to you. We can help you understand the potential benefits and challenges linked to different DEI qualifiers. This will ensure your policy supports the direction you want to go without being too cumbersome or limiting to your portfolio. For example, some clients focus solely on the composition of a firm’s ownership, while others include the composition of key decision makers.
Build a process and planStep two is to define clear DEI investment goals, and the processes and procedures needed to support these goals. This often requires making changes to investment policy statements. For example, some clients use an actual percentage goal for capital committed to DEI managers, whereas others use broader guidance. It's also important to establish measurement mechanisms to evaluate and understand your progress towards your DEI goals.
Implement your planThere are hundreds of diverse-led funds in the market today. We conduct ongoing research to help you quickly understand the market, and we help you create customized searches to identify opportunities that fit your specific DEI criteria. Our dedicated DEI researchers provide curated manager expertise to help ensure you can execute your investment plans.
Before you access this page, please read and accept the terms and legal notices below.
You’re about to enter a website intended for sophisticated, institutional investors and the information contained herein is not intended for investors who are not qualified purchasers as defined in the US Investment Company Act of 1940. Information about Mercer strategies is provided for informational purposes only and does not constitute, and should not be construed as, an offer to sell, or a solicitation of an offer to buy, any securities, or an offer, invitation or solicitation of any specific products or the investment management services of Mercer, or an offer or invitation to enter into any portfolio management mandate with Mercer.
Mercer makes no representation, and it should not be assumed, that past investment performance is an indication of future results. Moreover, wherever there is the potential for profit there is also the possibility of loss. Any person unable to accept these terms and conditions should not proceed any further. Mercer reserves the right to suspend or withdraw access to any page(s) included on this website without notice at any time and accepts no liability if, for any reason, these pages are unavailable at any time or for any period.