2021 Not-For-Profit European Investment Trends
We’re launching our first Not-for-profit (“NFP”) European Investment Trends Survey. The survey will run on an annual basis and aim to provide valuable insights to the sector on what their peers are doing across areas such as investments, responsible investing and governance. The results of this report will support our NFP virtual exchange in January 2021.
Please submit your responses no later than 17:00 GMT 26 November 2020. We recognize that participation in this survey requires a special effort on the part of your organization. In return for your contribution, you will receive a complimentary copy of survey results. All results will be aggregated and individual responses will be kept strictly confidential.
We will be hosting our first not-for-profit exchange on 12 January 2021. During this live virtual conference, we will unveil the results of the survey, and exchange on how you can adapt and prepare for the challenges and opportunities ahead. In addition, you'll hear from a range of Mercer and external industry speakers across a number of bespoke investment themes tailored around the needs and challenges of not-for-profit organisations like yours.
From large, global foundations to small, family-run endowments, we help not-for-profit organisations design portfolios suitable to their needs and that help them in their search of better investment outcomes, while keeping them in control and their costs down.
Our investment solutions governance framework gives our not-for-profit and charities clients access to as much of our institutional investment capability as they need to help meet their objectives. These clients work with our experienced teams to formulate a long-term, diversified investment strategy, drawing on our insight gained from operating in this field for several decades. We can also implement their own strategy, using our institutional-standard operational platform to access a wide global range of managers and asset classes – at competitive fees.
We were approached by a client who didn’t have a clear long-term strategy in place for the sustainability of their Trust, including the level of grants that should be awarded each year to recipients. The Trustee wanted to spend more of their time focusing on core activities like awarding grants, rather than managing the Trust’s investments. They acknowledged to do this they would need to add extra resources to their in-house team who could manage all of the operational and investment aspects of the Trust’s investment portfolio. The Trust’s investments lacked diversification and exposed the portfolio to potentially significant downside risk.
We worked with the Trustee to develop a clear strategy and objectives, enabling them to pan for a sustainable level of grants per year. We reshaped their investment strategy to create greater efficiency and higher level of expected return per unit of risk*. We achieved greater diversification through a full range of asset classes including private markets and incorporated ESG considerations across all asset classes. We were able to do this for similar investment manager fees as before. With Mercer’s reporting and help managing the managers, The trustee can now focus on their key responsibilities, and spend less time worrying about the Trust’s investments.
+44 20 7178 5732
+44 20 7178 3373
+44 131 247 4522
+44 20 7178 3147
Footnotes: *modelling of current portfolio and new portfolio is an annualised expected return calculated on mecer capital market assumptions from a 10year forward looking time horizon.
The investment solutions described on this site may be delivered by different Mercer entities, depending on where you are based. Not all services described may be available in your jurisdiction. Please contact your Mercer representative to see what services are available to you.
Investment management and advisory services for U.S. clients are provided by Mercer Investments LLC (Mercer Investments). Mercer Investments LLC is registered to do business as “Mercer Investment Advisers LLC” in the following states: Arizona, California, Florida, Illinois, Kentucky, New Jersey, North Carolina, Oklahoma, Pennsylvania, Texas, and West Virginia; as “Mercer Investments LLC (Delaware)” in Georgia; as “Mercer Investments LLC of Delaware” in Louisiana; and “Mercer Investments LLC, a limited liability company of Delaware” in Oregon. Mercer Investments is a federally registered investment adviser under the Investment Advisers Act of 1940, as amended. Registration as an investment adviser does not imply a certain level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. Mercer Investments’ Form ADV Part 2A & 2B can be obtained by written request directed to: Compliance Department, Mercer Investments, 99 High Street, Boston, MA 02110.
Certain regulated services in Europe are provided by Mercer Global Investments Europe Limited, Mercer (Ireland) Limited and Mercer Limited. Mercer Global Investments Europe Limited and Mercer (Ireland) Limited are regulated by the Central Bank of Ireland. Mercer Limited is authorized and regulated by the Financial Conduct Authority. Registered in England and Wales No. 984275. Registered Office: 1 Tower Place West, Tower Place, London EC3R 5BU.
References to Mercer shall be construed to include Mercer LLC and/or its associated companies.
Nothing in these documents should be viewed as the provision of investment advice. Information provided is for information purposes only to assist clients to evaluate investment solutions options that may be suitable for their needs. Any decision on what investment strategy to follow is the clients’ decision. Nothing in this document constitutes advice, an offer or a solicitation of an offer to buy or sell securities, commodities and/or any other financial instruments or products or constitute a solicitation on behalf of any of the investment managers, their affiliates, products or strategies that Mercer may evaluate or recommend.
Past performance does not guarantee future results. Mercer’s ratings do not constitute individualized investment advice. The value of your 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 carry additional risks that should be considered before choosing an investment manager or making an investment decision.
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.
Information contained herein may contain information from 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.
When receiving investment advice from Mercer, the advice provided can relate to solutions from both third parties and Mercer group entities. As a result, Mercer does not promote, nor should you consider, the advice provided as being independent. This conflict is addressed in more detail in our Conflicts of Interest Statement. For Mercer’s conflict of interest disclosures, contact your Mercer representative or see www.mercer.com/conflictsofinterest.
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.
When Mercer provides its views on asset allocation strategies that it believes may be appropriate to meet a clients needs, Mercer is not recommending that a client should invest or divest from any specific financial instrument or fund. Any decision to buy or sell a specific instrument or fund based on information provided by Mercer is the clients decision and should not be viewed as a recommendation by Mercer to buy or sell any financial instrument or fund.
This material may contain confidential and proprietary information of Mercer and is intended for the exclusive use of the parties to whom it was provided by Mercer. Its 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. 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.
When Mercer provides assistance through a manager selection service, it may consider a wider range of potential managers for specific strategies than those available through a Mercer Delegated Solution. Managers or Funds available on through a Delegated Solution may therefore differ to those recommended through a manager selection exercise.
Delegated Solutions can only be provided through certain Mercer entities. If you choose to implement all or part of your strategy through such solutions, you will be required to contract separately with the relevant Mercer Delegated Solutions entity.
References to Mercer shall be construed to include Mercer LLC and/or its associated companies.