Alternative investments: Is it too late to allocate?
Why should investors consider alternative investments?
In today’s dynamic financial landscape, investors face challenges such as uncertain economic conditions and market volatility. As a result, many are seeking opportunities beyond the traditional 60/40 portfolio and realizing the value of alternative investments.
Mercer’s Shaping the Future survey of defined benefit plan sponsors uncovered that 39% of plan sponsors intend to boost their allocation to private markets over the next three years. Why? The desire to increase portfolio diversification, with 63% of plan sponsors citing this as their primary goal.*
And now is the right time to consider an allocation to alternative investments – for many reasons:
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Access to the best alternative investment managers has significantly improved – and this window of opportunity may not remain open indefinitely.
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Alternative market solutions themselves have gone through extensive innovation. From evergreen vehicle development to availability of secondaries and co-investment funds, it has never been easier for investors to find solutions that meet their needs.
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Group pooling enables asset owners of all sizes to access a broader range of alternative investments. Improved access to managers and product innovation, combined with the power of group pooling, make top-tier alternative asset classes accessible to asset owners of all sizes.
At Mercer, our team of alternative investments specialists can help create an alternative investment strategy that fits your organization’s investment objectives. We have significant knowledge, deep expertise, and global scale and resources – available to help you access all types of alternative investments, tailored to your needs.
Whether you're considering alternative investments for the first time or have an established investment portfolio, our flexible approach can help you achieve your goals. Contact a Mercer consultant today to get started.
Our alternative investments approach can flex to suit you
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Client-centric flexible approach
Our work begins with the knowledge that no two clients are the same. Whether it’s cash-flow, targeted returns or familiarity with private markets, each organization has its own unique requirements. We know that pension providers, endowment funds, insurance companies and wealth management firms will all have different approaches and needs. Our flexible services allow us to meet these requirements. -
Extensive research platform
We construct flexible private markets solutions across all asset classes. These are designed to help meet each client’s particular needs, objectives and appetite for risk. We offer a range of services, from liquidity budgeting and strategy design to in-depth operational due diligence and standardized reporting. Our dedicated, experienced teams streamline even the most complex of processes to make our clients’ lives easier. -
Global reach, local resources
Our fund selection process is rigorous. Mercer typically reviews more than 2,000 fund offerings each year. Following this global review process, we perform due diligence, assign ratings and make recommendations for investments. These are based on each client’s unique portfolio objectives, cash-flow requirements and risk tolerance.
*Mercer’s Shaping the Future survey of defined benefit plan sponsors
Our experience in alternative investments
US$182 billion1 in global alternatives assets under advisement
US$34 billion1 in global alternatives under management
2602 alternatives professionals
30 years experience in private markets
312 offices globally
18 years track record managing hedge fund portfolios
1 June 30, 2023
2 December 31, 2023
Alternative investment strategies
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Co-investments
Co-investments have the potential to deliver greater diversification, lower fees and higher net returns and, provide a more tailored exposure set. -
Impact investing
Impact investments have the potential to help you find an optimal balance between making a positive change and delivering better returns. -
Infrastructure
Infrastructure investments have the potential to deliver greater diversification, inflation protection and longer-term sustainability. -
Private debt and credit
Private debt strategies have the potential to deliver a higher-yield than listed bonds and retain the potential for capital growth. -
Private equity
Private equity strategies leverage opportunities from the vast number of companies listed under private ownership. -
Real-estate
Investing in real-estate is linked to important sectors of the real economy, including long-term trends such as population shifts.