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Are you a NFP in the US? Visit our US not-for-profit investment page.



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“We believe a sustainable investment approach is more likely to create and preserve long-term capital and help not for profits achieve their objectives and align with their philanthropic mission. Learn about how we’re preparing for our client's future.”
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Not-for-profit organizations face particular challenges as they strive to balance effective governance and stewardship of investment portfolios while fulfilling the organization’s overall missions. We work with not-for-profit organizations — from smaller charities to large foundations — to create bespoke solutions that are aligned to their priorities. We help our clients to achieve better investment outcomes and reduce costs wherever possible, through a service model designed to their own individual needs. We are committed to providing innovative investment research, advice and solutions and to help protect and enhance reputations, so you can get on with changing the world for the better.


Common investment challenges

 

  • ESG and sustainability
  • Limited resources and expertise
  • Building a good governance framework
  • Achieving spending targets
  • Access to private markets
  • Cost and budgeting concerns





How to address these challenges


Top financial considerations in 2022

 


What should endowment investors be doing about inflation

 

 


Do your research

Do your research

 

If you decide to manage your own portfolio, it is important to have the latest insights and investment manager research at your fingertips. Here are some resources to help:

 

Get some advice

Get some advice

 

Speaking to a specialist can help you build an investment strategy aligned to your mission. Consider investment manager selection and monitoring, asset allocation, ESG and risk management.

 

explore solutions

Explore solutions

 

Implementing a bespoke investment solution – referred to as OCIO or delegated solutions - could help reduce costs, manage your risk, use fewer resources and build resilient portfolios.

 


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How we can help you


Designing your portfolio

Do your research

We draw on decades of experience to help you formulate a long-term, diversified investment strategy. We can also implement your existing strategy, using our operational platform to access a wide global range of managers and asset classes, at competitive fees.

Unlocking your potential

Get some advice

Unlocking the power of a portfolio comes through diversifying risk and return drivers. Private markets are becoming increasingly popular as they are often not correlated to public market volatility and have the potential to earn a premium by being held over the long term.

Investing for the future

explore solutions

We help you define and shape a responsible investment policy that is aligned to your principles and beliefs, while exploring the risks and opportunities that could significantly impact your portfolio. We also conduct rigorous oversight of managers to help ensure they are adhering to your beliefs.



Client case study

Learn how we have helped a large charitable trust in the UK

 



Improved governance

Lowered risk and improved overall returns

Accessed more asset classes and opportunities

Integrated ESG into overall strategy



The issue

 

The trustee board wanted to spend more time on its core activity of awarding grants but needed help with several investment challenges to make this happen. The board wanted to build a longer-term strategy, which incorporated both sustainability and the ability to fund the grants. The trust’s investments lacked diversification and were exposed to potentially significant downside risk. The trustee needed to manage the operational aspects of its investments but its in-house team did not have the resources or the expertise to do so.

The solution

 

We worked with the Trustee to develop a clear strategy with a sustainable level of grants per year whilst seeking to retain the real value of trust assets over the long term. A robust, diversified and ESG-aware investment strategy was implemented, helping reduce risk and better position the fund for opportunities. The assets were invested through Mercer’s investment solutions platform, which provides instant access to a full range of asset classes including private markets. Trust assets were invested across more than 20 high-quality managers in a cost-efficient manner.



Catch up on Not for Profits in focus: Today’s insight, tomorrow’s strategy

How does your investment strategy size up?

 

 

 

We reveal our 2022 global Not for Profit survey results. Discover what actions your peers are taking to face the challenges of today and how they are preparing for tomorrow’s new opportunities.  

 

Targeting long-term objectives through short-term ideas

 

 

 

What are some ways to manage through short-term and intermediate-term risks such as inflation, stagflation, and geopolitical flare-ups? We highlight our best investment thinking globally to help investors be dynamic even while maintaining discipline.

Discovering how to make your impact

 

 

 

Explore the journey to building and implementing an impact allocation with a panel of global not for profit investing experts.

 





Meet our specialists


Paul Fleming

Paul Fleming

Head of Not for Profit, Investment Solutions, UK

Cameron Taylor

Rebekah Dunn

Head of Endowments and Foundations, Pacific

Gilles Lavoie

Gilles Lavoie

Not for Profit investment consultant, Canada

Yaser Z. AbuShaban

Yaser Z. AbuShaban

Principal Consultant and Senior Investment Advisor

Texas Hemmaplardh

Texas Hemmaplardh

Co-Head of US Endowments, Pavilion, a Mercer practice

Amit Popat

Amit Popat

Head of Not for Profit, Europe and IMETA



Q&A

Q

How can I reduce the costs of my investments?

A

We believe our global assets under advice (USD$16trn) and assets under delegated management (USD$379bn+), combined with our fund manager working relationships, allow us to secure attractive investment management fees for our clients. In addition, our implementation fees are independent to the underlying third-party providers. We believe this is an area where we can add significant value.

 

Data as at 31 March 2021

Q

Are investment solutions more expensive for investors?

A

Our solutions management fees are independent to the underlying third-party providers. Mercer’s size (USD$348.4bn+ in assets and largest OCIO provider globally according to ai-CIO and the global P&I survey1) helps us negotiate potentially reduced third-party fees and seek savings for our clients. Importantly, we pass all savings back to our clients and are transparent on the fees and costs incurred. We ha