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Risks faced by investors

 

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 stay on top and in control of your risks

Do your research

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

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, sustainable investing and risk management.

explore solutions

Explore 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 low costs.




How we’re helping clients manage their risks

DB pension de-risking

We work with institutional investors like pensions, 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 has a low funding issue, 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

Design the right journey 


Featured solutions for risk management

 

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






Meet some of our experts 


Jimmy Furlong

Jimmy Furlong

Head of Solutions Management & Portfolio Analytics

 

Jimmy’s Portfolio Analytics role involves providing a wide range of portfolio intelligence services and performance analytics to Mercer’s largest and most sophisticated delegated clients, while also being responsible for the investment risk management of all funds and discretionary client portfolios. Additionally his Solution Management responsibility involves designing compelling solutions for clients by combining Mercer’s investment decision making, implementation and analytics capabilities, and in addition determining how best to expand those capabilities in a scalable and efficient manner.

 

Jeffrey Dissmann

Jeffrey Dissmann

Head of Investment Consulting Germany

 

Jeffrey’s main focus is on working with multinationals on strategic projects related to asset-liability management, strategic pension balance sheet, and risk management. His expertise includes the development of the strategy and the implementation of innovative risk management concepts in both German and international contexts.

 



Stan Mavromates

Stan Mavromates

Americas CIO

 

Stan’s team is responsible for over $130 billion in Investment Solutions assets for clients in Defined Benefit, Defined Contribution, and Not-for-Profit assets. His team focuses on providing Mercer’s best investment solutions to clients and implementing and monitoring those solutions. He sits on Mercer’s Global Investment Committee, the Chair of Mercer’s Discretionary Governance Manager Selection Committee, and a member of Mercer’s Not-for-Profit Investment Committee.

 

Fiona Dunsire

Fiona Dunsire

Wealth Leader, Growth Markets

 

Fiona is the Wealth Leader for Mercer’s growth markets. She is a member of the Mercer leadership teams for Mercer's International region and the Wealth business globally. Fiona has over 30 years' consulting experience across pensions, investments and business leadership.

 

Speak to a Mercer consultant



Important information

 

References to Mercer shall be construed to include Mercer LLC and/or its associated companies.

 

© 2020 Mercer LLC. All rights reserved.

 

This information is for sophisticated investors only who are accredited investors or qualified  purchasers.  Funds of private capital funds are speculative and involve a high degree of risk. Private capital fund managers have total authority over the private capital funds. The use of a single advisor applying similar strategies could mean lack of diversification and, consequentially, higher risk. Funds of private capital funds are not liquid and require investors to commit to funding capital calls over a period of several years; any default on a capital call may result in substantial penalties and/or legal action. An investor could lose all or a substantial amount of his or her investment.  There are restrictions on transferring interests in private capital funds.  Funds of private capital funds’ fees and expenses may offset private capital funds’ profits. Funds of private capital funds are not required to provide periodic pricing or valuation information to investors.  Funds of private capital funds may involve complex tax structures and delays in distributing important tax information. Funds of private capital funds are not subject to the same regulatory requirements as mutual funds. Fund offering may only be made through a Private Placement Memorandum (PPM).

 

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Mercer does not provide tax or legal advice. You should contact your tax advisor, accountant and/or attorney before making any decisions with tax or legal implications.

 

This does not constitute an offer to purchase or sell any securities.

 

The findings, ratings and/or opinions expressed herein are the intellectual property of Mercer and are subject to change without notice. They are not intended to convey any guarantees as to the future performance of the investment products, asset classes or capital markets discussed.

 

For Mercer’s conflict of interest disclosures, contact your Mercer representative or see http://www.mercer.com/conflictsofinterest.

 

This does not contain investment advice relating to your particular circumstances. No investment decision should be made based on this information without first obtaining appropriate professional advice and considering your circumstances.  Mercer provides recommendations based on the particular client's circumstances, investment objectives and needs.  As such, investment results will vary and actual results may differ materially.

 

Information contained herein may have been obtained from a range of third party sources. While the information is believed to be reliable, Mercer has not sought to verify it independently. As such, Mercer makes no representations or warranties as to the accuracy of the information presented and takes no responsibility or liability (including for indirect, consequential, or incidental damages) for any error, omission or inaccuracy in the data supplied by any third party.

 

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Mercer Global Investments Europe Limited and Mercer Limited are regulated by the Central Bank of Ireland under the European Union (Markets in Financial Instruments) Regulation 2017, as an investment firm.  Registered officer: Charlotte House, Charlemont Street, Dublin 2, Ireland.  Registered in Ireland No. 416688.  Directors: Sylvia Cronin, Michael Dempsey, Tom Geraghty, Abhishek Krishan, Deborah Mintern, Bruce Rigby (British) and Vincent Sheridan. Mercer Limited is authorized and regulated by the Financial Conduct Authority. Registered in England and Wales No. 984275. Registered Office: 1 Tower Place West, Tower Place, London EC3R 5BU.

 

Investment management services for Canadian investors are provided by Mercer Global Investments Canada Limited.  Investment consulting services for Canadian investors are provided by Mercer (Canada) Limited.

 

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