Wealth and Investments
Mercer SmartDB™

A SMARTER APPROACH TO MANAGING LONGEVITY RISK


Mercer SmartDB is a groundbreaking new solution that enables defined benefit (DB) pension plans to retain control, and manage cost and risk within a strong investment and broader governance framework. It features a new streamlined longevity hedge solution arranged in partnership with leading global insurer, Zurich, and available only through Mercer. This innovative new approach will provide a longevity risk solution to plans of all sizes that was previously accessible only to the largest plans.

Mercer’s team approach to defined benefit plan

The longevity hedge solution, in combination with Mercer’s market-leading fiduciary management services, makes Mercer SmartDB a viable alternative to buy-in in the short-term and to buyout in the longer term. It is also flexible and can be tailored to include appropriate actuarial, plan administration, and trustee governance services.

 

MERCER’S NEW SOLUTION

Mercer SmartDB provides access to a complete hedging and governance solution, eliminating many of the risks at a more manageable cost. We have used our experience of bespoke and complex longevity hedge transactions, combined with our market-leading fiduciary management capabilities, to establish a new approach for a whole new market.

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Improving surplus and reducing risks

Growth in assets relative to liabilities is a key tool for helping defined benefits plans meet their final obligations and funding objectives, and it requires an effective portfolio construction. Our investments team examines the major and minor asset classes and market/return drivers to create an optimal strategic plan to meet surplus growth objectives with an appropriate risk profile. Our experience and knowledge of the market and managers allow us to construct a portfolio of managers and funds to implement this strategic allocation in a way that improves potential returns and is cost-effective. At the same time, a deep understanding of the drivers of liability values and changes is critical to managing total pension risk. Our dedicated pension risk team and broad actuarial experience offer our clients truly comprehensive solutions.

Innovation backed by In-depth research

Critical to all our work is our dedication to research and innovation. Manager research, sophisticated risk and factor modeling, dynamic asset allocation, and pension surplus risk budgeting are some of the key areas in which we create positive results for our defined benefits clients.

How Mercer can help

Mercer can help defined benefits plans manage persistent risks, such as market volatility, uncertain liabilities, and pressure to reduce expense and contributions.

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   Mercer Awards and Accreditations

The Institute and Faculty of Actuaries Quality Assurance Scheme (QAS) accreditation

Financial News Investment Consultancy of the last 20 Years

Pensions Age Innovation Award 2016 for Mercer Pension Risk Exchange®

Portfolio Institutional #1 overall in 2016 Consultant Survey — for the 3rd year in a row

Chief Investment Officer 2016 Outsourced Survey #1 Provider

Financial News 2015 Investment Consultants of the Year

UK Pensions Awards 2015, DB Investment Innovation of the Year - SmartDB®

European Pensions Awards 2015 Consultancy of the Year — for the 2nd year in a row

Global Finance 2015 Best Provider of Pension Plan Administration — for the fifth year in a row

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