Key Takeaways
- • Mercer's U.S. chief investment officer Olaolu Aganga discussed the firm's acquisition of Vanguard's Outsourced Chief Investment Officer (OCIO) business, per a Pensions & Investments interview published June 4, 2024.
- • Vanguard's roughly 120-member OCIO team is expected to transfer to Mercer as permanent, full-time employees upon completion of the deal.
- • Following the close, Mercer's OCIO assets total $489 billion as of March 31, according to Marsh McLennan earnings materials cited by the publisher.
- • Aganga outlined Mercer's plan to help nonprofit endowments and foundations expand into alternative investments.
Summary
Mercer's chief investment officer for the U.S., Olaolu Aganga, spoke with Pensions & Investments about Mercer's agreement to acquire Vanguard's Outsourced Chief Investment Officer business, which provides investment management services to institutional clients. Under the agreement, Vanguard's roughly 120-person OCIO team is expected to transfer to Mercer as full-time employees once the transaction closes.
Mercer has since completed the acquisition. According to Marsh McLennan earnings materials cited in the coverage, Mercer's OCIO assets total $489 billion as of March 31, following the close of the deal. The acquisition extends Mercer's investment solutions and OCIO offering, which the firm describes as designed to help clients address risk and governance concerns, invest sustainably and diversify their portfolios.
In the interview, Aganga addressed Mercer's plans to help nonprofit organizations, including endowments and foundations, enter alternative investments. Coverage of the transaction noted that Vanguard's former OCIO clients may face higher-fee active funds and alternative investments following the transfer, a point raised by critics in commentary on the deal.
The interview was conducted by Pensions & Investments reporter Erin Arvedlund and published June 4, 2024.
Mercer has since completed the acquisition. According to Marsh McLennan earnings materials cited in the coverage, Mercer's OCIO assets total $489 billion as of March 31, following the close of the deal. The acquisition extends Mercer's investment solutions and OCIO offering, which the firm describes as designed to help clients address risk and governance concerns, invest sustainably and diversify their portfolios.
In the interview, Aganga addressed Mercer's plans to help nonprofit organizations, including endowments and foundations, enter alternative investments. Coverage of the transaction noted that Vanguard's former OCIO clients may face higher-fee active funds and alternative investments following the transfer, a point raised by critics in commentary on the deal.
The interview was conducted by Pensions & Investments reporter Erin Arvedlund and published June 4, 2024.
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