Mercer Approaches ‘Fund Manager’ Status

(January 6, 2012)  —  Investment consultant Mercer has taken a step closer to becoming a fully-fledged investment firm with an internal reorganisation focused on fund management.

A statement from the global investment and human resources company, at the end of this week, said that it would be shifting towards providing a service closer to that of an asset manager than an investment consultant.

Phil de Cristo, President and Group Executive of Investments, said: “Investments is a high growth business for Mercer that has grown at a double-digit rate over the past nine quarters.

“In designing our own organizational structure for the future, we are determined to be ready with the services our clients need as they evolve.”

De Cristo said Mercer would continue to offer investment consulting, but its clients had demanded it move “beyond investment consulting and to assume a greater role in helping them manage their investment programmes”.

Over the last 18 months Mercer has experienced several senior departures from its investment practice in the UK. In October, Jon Exley, previously a partner within Mercer’s specialist Financial Strategy Group, left to join the Investment Advisory practice at KPMG. In July, Crispin Lace left Mercer to join Russell Investments, following the exit of global chief investment officer Tim Gardener a year earlier.

Asset management professionals speaking with aiCIO said Mercer’s latest move was the natural next step as the firm had been moving in that direction for a couple of years – albeit in a less explicit way.

The institutional sales manager of one large asset manager said:  “We have seen Mercer – and other consultants – moving away from traditional models towards fiduciary management and straight fund management.

“At least they are being explicit in what they are doing now,” he said.

Mercer has implemented several personnel changes as a result of the shake-up:

Tom Geraghty has been named head of Investments for EMEA (Europe, Middle East and Africa).  Michael Dempsey will become head of fiduciary management for EMEA, reporting to Geraghty.

Stephen Roberts has been named Head of Investments for Asia-Pacific. Simon Eagleton has been appointed Australia/New Zealand market leader for investments. 

Andrew Kirton remains global CIO with an increased emphasis on strengthening Mercer’s portfolio management and strategic research capabilities.

Jeff Schutes has been named global head of manager research and wealth management. Cara Williams will continue to lead wealth management, reporting to Schutes.

Rich Nuzum has been appointed head of Investments for the US. Tom Murphy will become head of fiduciary management for the US, reporting to Nuzum.

Ted Singeris has been appointed the Head of Investments for Canada and Latin America. Yvan Bretan will become head of fiduciary management for Canada and Latin America.