Alternative investments
Outsourced CIO (OCIO)
Our investment solutions and OCIO services are designed to help you address risk and governance concerns, invest sustainably and diversify with alternatives.
Governance solutions for institutional investors
Better investment governance underpins everything we do and we know it’s important to your organisation too. Over the last two decades we have built robust operational capabilities and portfolio management systems to meet your needs. By helping you strategise and build a resilient operational decision-making framework, we’ll steer you to a more time-efficient, cost-effective and resilient approach to governance.
Strong investment governance is the basis of a successful portfolio
Market volatility is inevitable, but the right portfolio management framework can help you weather the storm. Governance is a critical aspect of portfolio management. When volatility strikes, having clear implementation and robust oversight systems in place enables you to act, rather than react.
Better investment governance helps you stay focused on your objectives while pursuing investment outcomes. We have more than 15 years of experience helping clients integrate governance into their investment decision-making processes. In our robust governance framework, tasks are assigned to experienced, dedicated teams that are positioned to pursue opportunities in a cost-efficient manner. This can help streamline decision-making and could lead to enhanced investment outcomes.
A strong governance framework should be the starting point from which all investors begin to forge their objectives, investment strategies and portfolio designs. Investments can easily and quickly run off course without a firm governance foundation. It then requires time and vital resources to put them back on track. Better governance is all about putting yourself in control.
Addressing key issues with robust governance
- 1 Be prepared for market volatility
- 2 Mitigate a range of investment risks
- 3 Manage and seek to minimise costs
Market movements will always occur, but they are becoming more frequent and more extreme globally. This is putting rising pressure on portfolios and institutional investors. A streamlined governance framework can aid effective decision-making and help you maintain control.
Establishing a clear governance framework can help you mitigate a wide variety of investment risks, and changing regulations. If not properly managed, these risks can compromise investment outcomes.
A strong governance framework can provide you with the information and greater transparency you need to oversee, understand and manage the broad spectrum of costs incurred when running a sophisticated investment portfolio.
Three steps to defining your governance strategy
When it comes to defining your governance framework, we suggest that you consider adopting a three-stage process. By analysing your strategic priorities and ongoing activities at each stage, you can decide where your time will be best spent and how your investment commitments can be most effectively undertaken.
Once you have defined your key priorities, you can consider whether you need to build a larger internal team to take on all necessary tasks. It may make sense to consider appointing external support as an extension of your team to help you deliver on your obligations.
Twelve considerations for better investment governance
We highlight 12 considerations that can help you build a strong base and improve their overall governance.
Work with an investment partner to help you build an effective governance framework
We work with institutional investors all around the world and across all industries, helping them deliver on their overall investment objectives and commitments. We can help you establish more diversified strategies and operational structures so that you’re primed to react when market volatility strikes. You’ll also be able to capture potential opportunities while others are managing the fallout.
We are able to put systems in place to give you confidence that you have the right people doing the right things at the right time. This should allow you to improve the oversight and management of your portfolio, and allow us to help you prepare for the next challenge. We can also help with some or all of your governance responsibilities.
Having clear decision-making pathways and responsibilities (established through an outsourced governance partner) means routine operational tasks are assigned to the people best placed to execute them.
An effective governance framework can also smooth out changes at an asset-class or manager level. This can help you manage costs more effectively across your portfolio. It can also enable your portfolio to harness new investment strategies as they are identified by our industry-leading research.
How we help clients address governance
- We assess portfolios for efficiency, diversification, innovation and potential areas for improvement.
- We create systems to help you react quickly when required.
- We constantly analyse your holdings and risk exposures to reduce your oversight burden.
- We help give you confidence that your portfolio is primed to turn crises into opportunities.
Using an investment solution to gain a governance advantage
A governance advantage enables our clients to access timely information, respond more quickly, and make effective decisions. This helps them to manage risk and capture emerging opportunities. Good governance underpins everything we do as an investment partner.
President, Investments & Retirement
Related solutions
-
-
Risk management
We can help you analyse your investment risk framework and portfolio performance to help you understand your portfolio's potential to adapt to market challenges. -
Alternative investments
Alternatives
We help generate new ideas, uncover innovation and source managers across all alternative investment asset classes, private markets and hedge funds.
Related insights
-
Investment trends
Economic and Market Outlook 2025
Investors face a winding and potentially challenging path through rate cuts and market shifts in 2025. This paper spotlights key opportunities and risks to consider. -
Portfolio strategies
Stronger together: completing the acquisition of Cardano
Announcing the completion of the acquisition of Cardano -
Road to COP 29: Transition today ─ a progress update
How can investors tackle the causes and effects of climate change to achieve a net-zero future?
Related podcasts
-
Critical-thinking podcast
Critical thinking℠
Hear about the latest market themes, new ideas, opportunities and what’s shaping the future of asset management in our global investor podcast series.
Insights, ideas, innovation
It's all here: MercerInsight® Community
Simplify your search. Get strategic research tailored to your interests from thought leaders across the investment industry, including Mercer and hundreds of third‑party publishers. Membership is complimentary, and it takes seconds to sign up.
Join the community
Leverage our breadth and depth
$16.2T
US $16.2 trillion in global assets under advisement1
$548Bn
US $548 billion in global assets under management2
11K+
More than 11,900 investment strategies rated3
3K+
More than 3,000 asset managers rated4
* 1 June 30, 2023, 2 September 30, 2024, 3 March 31, 2024, 4 March 31, 2024
Meet some of our team
Contact us
Important
References to Mercer shall be construed to include MMC Financial Company (Mercer) and/or its associated companies.
© 2023 MMC Financial Company. All rights reserved.
This content may not be modified, sold or otherwise provided, in whole or in part, to any other person or entity without Mercer's prior written permission.
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.
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.
Past performance is no guarantee of future results. The value of investments can go down as well as up, and you may not get back the amount you have invested. Investments denominated in a foreign currency will fluctuate with the value of the currency. Certain investments, such as securities issued by small capitalization, foreign and emerging market issuers, real property, and illiquid, leveraged or high-yield funds, carry additional risks that should be considered before choosing an investment manager or making an investment decision.
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.
For the most recent approved ratings of an investment strategy, and a fuller explanation of their meanings, contact your Mercer representative.
Mercer universes: Mercer’s universes are intended to provide collective samples of strategies that best allow for robust peer group comparisons over a chosen timeframe. Mercer does not assert that the peer groups are wholly representative of and applicable to all strategies available to investors.
Please see the following link for information on investment management index definitions.
Not all services mentioned are available in all jurisdictions. Please contact your Mercer representative for more information.
In the Kingdom of Saudi Arabia, Mercer’s Investment Services are delivered by MMC Financial Company (“MMCFC”). MMCFC is regulated by the Capital Market Authority (CMA), License No. 20-22238. MMCFC is incorporated in the Kingdom of Saudi Arabia, Commercial License No. 431210240571.
For the conflict of interest statement of Mercer Investments, of which MMCFC is a part, contact your Mercer representative or see https://www.mercer.com/conflictsofinterest.
