Mercer Short Duration Fixed Income Fund Class Y-3 · NASDAQ:MSDYX
Mercer Short Duration Fixed Income Fund Class Y-3 — Mercer — Investment Solutions Webinar 2020
24 slides from Mercer Short Duration Fixed Income Fund Class Y-3's conference presentation, May 7, 2020
Slide 1: Building better-prepared portfolios start now
@8 MERCER Investment Solutions Building better-prepared portfolios start now | 7 May 2020 Rupert Watson Head of Dynamic Asset Allocation Niall O’Sullivan European ClO
Slide 2: US equities rebound 50%, high yield has recovered
US equities rebound 50% High yield has recovered But commodities haven’t And neither has EM FX and bonds Source: Bloomberg, 5 May 2020.
Slide 3: This is why markets have recovered
This is why markets have recovered Source: Bloomberg, 5 May 2020.
Slide 4: Restart: allowed to do versus want to do
Restart: allowed to do versus want to do Georgia Colorado Tennessee Texas Florida Ohio x ¥ x ¥ x x Y x x x x v¥ x ¥ x x Y x x x x ¥ x x x xX x x x xX % of adults agreeing with statement: "We should restart the economy ..AND IT'S STARTING TO PICK UP AGAIN NOW and allow businesses to open even if the
Slide 5: Sweden has imposed less strict containment measures
Exhibit 1: Sweden has imposed less strict containment measures, which is reflected in stronger economic activity
Slide 6: Italian CDS: a measure of default risk since 2010
Italian CDS: a measure of default risk. Since 2010 Source: Bloomberg, 5 May 2020.
Slide 7: Summary view 2020 Q2
Summary view 2020 Q2 Global DAA Dashboard oe | Santee Main Asset Classes 2020 Q2 @ overweight GH Neutratweignt — @ Underweight LISTED EQUITIES GROWTH FIXED INCOME CASH* DEFENSIVE FIXED INCOME @% MERCER Copyright © 2020 Mercer. Alll rights reserved.
Slide 8: What should you be asking?
What should you be asking? Reaction Resilience Resolution @% MERCER Copyright © 2020 Mercer. Alll rights reserved.
Slide 9: Importance of investment governance
Importance of investment governance Situations will arise 08/09 Financial Crisis - MSCI COVID-19 2020 Crisis - MSCI 100 90 105 80 95 70 85 60 75 50 40 65 12/2007 06/2008 12/2008 06/2009 02/2020 03/2020 Source: Databank, MSCI ACWI Index returns (local currency) Source: Databank, MSCI ACWI Index retur
Slide 10: Portfolio preparedness: hitting longer term objectives
Portfolio preparedness: hitting longer term objectives Legacy high governance portfolio (2011) Evolved high governance portfolio (2020) Factor Equity, 4% Liquid Alternatives Private coos ae Synthetic Equity-Linked Strategies, 12% Nominal Bond Fund , 5% be ‘Synthetic Equi - Real Bond Fun HLV Property
Slide 11: Ready to capture opportunities
Ready to capture opportunities 14% High Yield OAS Spread 12% Very overweigh > Very overweight y A little overweight Neutral 10% Neutral 6% 4% 2% 0% April2015 October 2015 April2016 October2016 April2017 October2017 April2018 October2018 April2019 October 2019 April 2020 Credit trade added value over
Slide 12: Smart execution — our five tips
Smart execution — our five “tips” Widenin i g Smart Netting trading : where trading : ranges possible Avoiding Collateral reversing management trades @% MERCER Copyright © 2020 Mercer. Alll rights reserved. 12
Slide 13: Mercer scale and active performance statistics
7,192 35,746 11,807 2,876 Source Mercer, as at 31 December 2019. # research specialists includes admin staff. Aggregate active portfolio net performance versus benchmarks is based on all active funds managed via our European platform vs their respective benchmarks, excluding absolute return portfoli
Slide 14: How we supported our clients
How we supported our clients Keeping them informed “think we all need to feel grateful that the changes made in the investment of the fund in recent years has resulted in the Scheme finances being much more robust than in previous years.” Investment Solutions Client @% MERCER x x Hosting Video Email
Slide 15: * MERCER Copyright All rights reserved.
2 * MERCER Copyright © 2020 Mercer (US) Inc. All rights reserved. 15
Slide 16: Thank you
Thank you For further information and materials, plea Wwww.mercer.com Please send us any questions by email to MercerlnvestmentSolutions@mercer.com "MERCER Copyright © 2020 Mercer (US) Inc. All rights reserved.
Slide 17: Appendice
Appendice
Slide 18: Identifying The Critical Components
Identifying The Critical Components Where To Spend Your Governance Budget HIGH Be Vv < a = - 9 Vv 2 4 2 z LOW LOW HIGH RESOURCE INTENSITY 1. Objective Setting 4. Portfolio Design 7. Manager Change Implementation 2. Strategy Design 5. Manager Research 8. Rebalancing and Cashflows 3. Strategy Implemen
Slide 19: Investment Governance - Value Chain
Investment Governance - Value Chain ~— FINANCIAL IMPACT | Risk Management | | Risk Management | So Investment Implementation Operational Execution Performance Reporting RESOURCE UTILISATION @% MERCER Copyright © 2020 Mercer (US) Inc. All rights reserved 19
Slide 20: Return seeking, diversifiers and risk reducing assets
Return seeking (Equities) Return seeking (Bonds) Diversifiers (Alternatives) Risk Reducing (LDI, Gilts & Credit)
Slide 21: Progression Of Funding Level
Progression Of Funding Level Footnotes Source: Mercer estimates, State Street Fund Services (Ireland) Limited and Pension Protection Fund (PPF) 7800 published data. The blue line in the chart shows the average funding level improvement of Mercer’s fiduciary clients based on aggregated assets and lia
Slide 22: Confidentiality and disclosure
Confidentiality and disclosure Our clients’ industries are extremely competitive. The confidentiality of companies’ and trustees’ plans and data is obviously critical. Mercer will protect the confidentiality of all such client information. Similarly, pensions consulting is a competitive business. We
Slide 23: Important information
@e MERCER Important information - This material is intended only for institutional investors. © 2020 Mercer. All rights reserved. This contains confidential and proprietary information of Mercer and is intended for the exclusive use of the parties to whomit was provided by Mercer. Its content may no
Slide 24: @e MERCER
@e MERCER