Keeping portfolios on top. Fiduciary management that thinks ahead.

For 15 years, Mercer has provided fiduciary management services to a range of institutional investors in the UK – from pension schemes to endowments, foundations, insurers and wealth managers. Our dynamic solutions, global intellectual capital , manager research and sophisticated execution help us to deliver for clients.

What is fiduciary management?

Put simply, fiduciary management is the combination of investment advice with implementation. Institutional investors are freed up to focus on strategic decision making and long-term outcomes.

 

Investment challenges such as; increasing complexity, ESG, sustainability and managing ongoing costs have increased the demand for fiduciary management solutions. 

 

Mercer was one of the UK’s earliest providers of fiduciary management services. We provide single asset class or portfolio solutions. Increasingly larger asset owners are redefining their requirements in terms of OCIO (Outsourced Chief investment Officer).

 

Broadly speaking, fiduciary services can deliver five key advantages:

Flexible and robust governance. We believe the best approach is to tailor fiduciary management solutions to a client’s specific needs and circumstances. Clients can phase in new ideas at their own pace.

De-risking. Our flagship DB pension solution includes automatic de-risking triggers to lock in funding level gains. A well-implemented de-risking programme gives you increasing certainty that your funding position will be ‘locked in’ over time and there will be no nasty surprises.

Access to highly rated investment managers. With more than 200 investment researchers, we offer access to some of the best thinking in the market and quality managers who can help  generate outperformance. In particular, we have significant resources focused on providing access to diversified collections of specialist private markets managers: designed to improve portfolio efficiency, these portfolios have produced strong returns.

Cost savings. We leverage our global scale to achieve some of the most competitive fees in the market. Our global implementation framework ensures that each client receives the same access to highly-rated investment managers at the same, low underlying management costs. Any fee discounts we negotiate pass through to our clients.

ESG integration. Our investment portfolios reflect ESG themes and keep our clients out ahead of their regulatory obligations. Many institutional investors want to integrate ESG into their decision making but struggle to do so given various constraints. Our fiduciary management solution has these themes built-in.

Is your portfolio prepared for today’s exceptional challenges?

Institutional investors have rarely faced greater challenges. Rising interest rates, geopolitical uncertainty and inflation are creating headwinds for financial markets, while regulatory requirements are becoming more complex.

 

At such a testing time, institutional investors need to address challenges in the following areas:

  • Achieving real investment returns in an uncertain environment.
  • Ensuring the suitability of your investment strategy and investment managers.
  • Increasing complexity and the risk of regulatory requirements.
  • Managing liquidity.
  • Operational inefficiencies and implementation timelines.
  • Manager fees, transparency and other costs.

For many institutional investors, portfolios structures that have worked well for the last few decades are under pressure. This is a crucial moment to stress test investment beliefs and strategies.


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“We work in partnership with clients, delivering access to the best thinking in the market. We help you to analyse the challenges you face, giving you the knowledge and confidence to make effective decisions. As you choose to phase in new ideas and asset classes, we have the flexibility to do so at whatever pace suits you.”
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Dan Melley

UK Head of Investments

Three steps for optimising your investment portfolio.

1

Review and adapt your governance framework.

Untangling complexity and preparing to face the future is essential in today’s changing markets. If you believe you need to improve your governance and oversight, while keeping costs down, we can provide the support you need now and in the future.

2

Assess your portfolio against your future objectives.

Thinking critically about your investment portfolio compared with your future objectives is the first step towards solving any problems. We work closely with our clients to design and implement the appropriate investment journey.

3

Shape and implement a sustainable investment policy.

Our dedicated team can help you to form a sustainable investment policy and we rigorously oversee portfolios to ensure managers are sticking to their sustainability claims, and to protect clients from reputational damage.

Read more about our investment services

Many investors seek guidance on strategic asset allocation, manager research, portfolio construction and risk and reporting, as well as day-to-day operational support. These are our fiduciary management and OCIO solutions, which can be used alongside broader investment consultancy. 

 

Implementing our investment solutions typically instills greater confidence: it gives you the support of investment professionals without ceding control over your investments. We offer a range of tools that you can use to help solve your investment challenges.

Our latest thinking about Fiduciary Management

 

 

Opportunity knocks – are you ready to answer?

 

 

 

A look back at de-risking strategies, have they worked and how to capture opportunities.

Our achievements

We're delighted to have won four awards at the 2022 Professional Pensions Awards.

 

Meet the team

Dan Melley

Dan Melley

Head of UK Investments

Dan is a Partner and UK Head of Investments for Mercer. He is responsible for bespoke investment solutions for clients, developing commercial relationships and overseeing the execution of Mercer’s investment solutions, distribution and growth strategy. Dan sits on Mercer’s UK Growth Leadership Committee, Wealth Leadership Team and the Investment Solutions European Leadership Committee.

Helen Hope

Helen Hope

Partner at Mercer, UK Head of Clients

Helen is responsible for the advice and delivery of all of Mercer's UK delegated solutions clients, including the DB Master Trust. Previously named as Investment Advisor of the Year by Professional Pensions.

James Lewis

James Lewis

Partner at Mercer, UK Head of Investment Strategy

James is Head of Investment Strategy for Mercer’s UK Delegated Solutions business. As well as leading the strategy team James is the lead Strategist for a number of clients where the scope of work ranges from detailed modelling of the financial risks his clients face to planning and implementing sophisticated journey plans. He has a particular focus on investment strategy and its evolution overtime to reflect the changing dynamics of the pension scheme.

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