Key Takeaways
- • Mercer reported global assets under management of $321.4 billion as of September 30, 2020, a 5.6% increase from $304.5 billion as of November 30, 2019.
- • The firm attributes the growth partly to the Covid-19 pandemic, which it says drew more institutional investors to its outsourced chief investment officer (OCIO) solutions.
- • Mercer ranked first worldwide for outsourced AUM by Pensions & Investments in March 2020 and first for global AUM by CIO magazine in the same month.
- • Mercer's investment business employs more than 1,300 people globally, within a wider firm of more than 25,000 people in 44 countries.
Summary
Mercer, the New York-based HR consulting and wealth management firm, reported global assets under management of $321.4 billion as of September 30, 2020, according to the company's announcement. That represents a 5.6% increase from $304.5 billion as of November 30, 2019, a figure the firm cited as predating the Covid-19 pandemic.
Mercer attributes the growth in part to pandemic-driven demand. Rich Nuzum, president of investments and retirement at Mercer, said there was "a direct correlation between the challenges of the pandemic and investors' interest in our investment solutions," pointing to a liquidity crisis and extreme market volatility. He noted that equity markets had since recovered to new highs, while long-term real and nominal interest rates remained near historic lows, complicating investors' efforts to meet long-term goals. Nuzum said institutions whose governance allowed them to rebalance, de-risk, and re-risk portfolios, and to take advantage of high-yield and private debt at the market low, achieved better performance. He added that many asset owners are looking to access outsourced CIO (OCIO) solutions "before they are tested in this way again."
Samantha Davidson, leader of OCIO services in the US at Mercer, said rising demand for diversification, which requires more asset classes and managers and greater operational oversight, has drawn pension schemes, insurance companies, and not-for-profit entities to the firm's investment solutions. She cited fee pressure and challenging market conditions as further drivers of demand for more dynamic portfolio management.
Mercer also cited industry rankings: Pensions & Investments ranked it first worldwide for outsourced AUM in March 2020 and first for assets under advisement as of June 30, 2020, and CIO magazine rated it first for global AUM in March 2020. The firm recently expanded its investment solutions line with Analytics for Climate Transition (ACT), a tool that helps institutional investors target emissions reductions through responsible investment. Mercer is part of the Marsh & McLennan group, which also includes Marsh, Guy Carpenter, and Oliver Wyman.
Mercer attributes the growth in part to pandemic-driven demand. Rich Nuzum, president of investments and retirement at Mercer, said there was "a direct correlation between the challenges of the pandemic and investors' interest in our investment solutions," pointing to a liquidity crisis and extreme market volatility. He noted that equity markets had since recovered to new highs, while long-term real and nominal interest rates remained near historic lows, complicating investors' efforts to meet long-term goals. Nuzum said institutions whose governance allowed them to rebalance, de-risk, and re-risk portfolios, and to take advantage of high-yield and private debt at the market low, achieved better performance. He added that many asset owners are looking to access outsourced CIO (OCIO) solutions "before they are tested in this way again."
Samantha Davidson, leader of OCIO services in the US at Mercer, said rising demand for diversification, which requires more asset classes and managers and greater operational oversight, has drawn pension schemes, insurance companies, and not-for-profit entities to the firm's investment solutions. She cited fee pressure and challenging market conditions as further drivers of demand for more dynamic portfolio management.
Mercer also cited industry rankings: Pensions & Investments ranked it first worldwide for outsourced AUM in March 2020 and first for assets under advisement as of June 30, 2020, and CIO magazine rated it first for global AUM in March 2020. The firm recently expanded its investment solutions line with Analytics for Climate Transition (ACT), a tool that helps institutional investors target emissions reductions through responsible investment. Mercer is part of the Marsh & McLennan group, which also includes Marsh, Guy Carpenter, and Oliver Wyman.
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