Mercer Short Duration Fixed Income Fund Class Y-3 · NASDAQ:MSDYX
Mercer Short Duration Fixed Income Fund Class Y-3 — Mercer — 2020 UAE Total Remuneration Survey Post-Survey Webinar
56 slides from Mercer Short Duration Fixed Income Fund Class Y-3's conference presentation, Oct 5, 2020
Slide 1: 2020 UAE Total Remuneration Survey Post-Survey Webinar
TOTAL REMUNERATION SURVEY (TRS) 2020 UAE POST- SURVEY WEBINAR 5 October 2020 Dubai - Mercer Mercer Financial Services Middle East Limited welcome to brighter Registered With DIFC, License No. CL0939 and Regulated by the DFSA.
Slide 2: Agenda
Agenda 1. Welcome and Introduction Ted Raffoul, Career Products Leader | MENA, Mercer 2. The post-COVID-19 Recovery | An Economic and Political Outlook for MENA Robert Willock, Director MENA, The Economist Corporate Network 3. 2020 Compensation and Benefits Trends Carolina Vorster, Workforce Product
Slide 3: Welcome and Introduction
Welcome and Introduction Ted Raffoul, Career Products Leader | MENA, Mercer
Slide 4: Mercer today
Mercer today 45K clients Compensation & Rewards surveys 35M incumbents Compensation & Rewards surveys $11.5T $250B Under in Assets Under advisement | Management @% MERCER +80 year history $4.53B In revenue 92% 86% fortune 500 FTSE 100 +25,000 colleagues
Slide 5: The Mercer Advantage
The Mercer Advantage Always bring a point of view Weare thoughtful and invested with our thinking, moving towards the opportunity together. Boldly shape the future We solve for future workforce and organizational needs, quantifying the economic and human impact at every step. Deliver the whole firm
Slide 6: Mercer Portfolio
Mercer Portfolio • • • • • • • • • • • • • • • • • • • • • 6
Slide 7: Mercer
Mercer | • • • • • • • • • • • • • • • • • 7
Slide 8: The Post-COVID-19 Recovery: Economic and Political Outlook for MENA
The Post-COVID-19 Recovery | An Economic and Political Outlook for MENA Robert Willock, Director MENA, The Economist Corporate Network
Slide 9: Three themes to structure thinking for 2021
Three themes to structure thinking for 2021 For 2020, the recovery in the second half will be modest Crises Corona Don’t bring crisis forget... change US-China trade war and broader tensions Rollback of civil liberties: govts with Global economy shutdown only one of getting worse; bifurcation is now
Slide 10: Picture looks grim: 2020 global GDP growth -5.2%
Picture looks grim: 2020 global GDP growth -5.2% •Euro zone •Russia •US •-8.4% •-6.1% •-5.3% China Japan MENA 1.7% -5.2% -5.8% •India •Lat Am •-8.5% •-8.8% •SSA ASEAN -2.2% •-4.7% ANZ -4.4% 10
Slide 11: Europe leads the recovery in 2021
Europe leads the recovery in 2021 (but it had the deepest crash) Fragmenting EU politics + nationalism Overcapacity risk Oil price slump and conflict multiplier US slow response, biggest outbreak Unprecedented joint debt issuance Smaller stimulus in Asia Fragile macro shattered Africa has the weakes
Slide 12: EM convergence goes into reverse for two years
EM convergence goes into reverse for two years Excluding China, emerging markets grow by less than the OECD until 2022 EM recovery hampered by borrowing costs, weak health systems and macro imbalances 12
Slide 13: Overall recovery in US and China will beat Europe
Overall recovery in US and China will beat Europe In most countries GDP will not reach Q4 2019 levels until 2022/23 Pay attention to data in levels and expressed 2021 in quarter-on-quarter terms: the usual annual figures will be hard to interpret Factors that will affect recovery 2022 • fiscal space
Slide 14: Emerging markets' (& GCC) preparedness
Emerging markets’ (& GCC) preparedness 14
Slide 15: GCC GDP growth forecasts
GCC GDP growth forecasts Recovery by: Q1 2023 Q3 2022 Q2 2023 Q2 2023 Q3 2022 6 % GDP growth 4 (yoy) 2 2019 2020 2021 0 2022 UAE Kuwait Saudi Arabia Bahrain Qatar 2023 2024 -2 -3 -4 -5 -5,2 -5 -6 -5,5 15
Slide 16: ME looking to reinvent supply chains
ME looking to reinvent supply chains Resilience to disruptions and economic diversification loom large Historic downturn in trade has jolted supply chains and ME companies rethinking their supply chain strategies Renewed focus on building supply chain resilience by shortening and diversifying supply
Slide 17: Impact on private consumption
Impact on private consumption Consumer confidence is down • A rise in unemployment and pay cuts mean consumers are more cautious and are postponing big-ticket purchases. • An expat exodus will change populations, demographics and spending patterns. 17
Slide 18: Oil demand won't get back to Q4 2019 until early 2023
Oil market drama from geopolitics and covid-19 Oil demand won’t get back to Q4 2019 until early 2023 18
Slide 19: Oil price stuck below US$45/bbl until end 2021
Oil price stuck below US$45/bbl until end 2021 Out to 2025 it should stay broadly in the US$50-60 range 2020 Q2 average: US$32.4/b ● Demand is hit in OECD countries ● Consumption recovers in China ● Shaky, limited price-war agreement reached 2020 H2: forecast of $43.7/b ● Global storage capacity fil
Slide 20: Investing post-covid: prepare for a bipolar world
Investing post-covid: prepare for a bipolar world The investment landscape has probably changed for good Investment strategies need to consider the gap between the real economy and the financial economy, and risks if this delicate balance is disrupted ➢ No end to monetary stimulus in sight ➢ Watch f
Slide 21: Unprecedented central bank-financed debt: so what?
Unprecedented central bank-financed debt: so what? High debt burdens likely to lead to Japan- or Ital-ification 1. Big state is growing 2. How do we get out of it? (no good option) • Fiscal stimulus is new king • Austerity and repay debt: higher taxes (good luck with that!) • Massive bailouts also f
Slide 22: Any Questions?
Any Questions? Robert Willock Director MENA The Economist Corporate Network robertwillock@economist.com
Slide 23: Compensation and Benefits Overview
Compensation and Benefits Overview Carolina Vorster, Workforce Products Leader, Mercer
Slide 24: Total Remuneration Survey Global Overview
Total Remuneration Survey Global Overview participating Jobs at all level Incumbents organizations published around by number of participating organizations the world 4.9K 4.7K 4.0K Countries where Consumer Goods we collect and provide data 3.7K 2.4K Life Sciences Retail & Wholesale • Annual Base Sa
Slide 25: Total Remuneration Survey Regional and UAE Overview
Total Remuneration Survey (TRS) Regional and UAE Overview MENAT SURVEY PARTICIPATION – TRS (# OF ORGANIZATIONS) 2020 UAE SURVEY OVERVIEW MENAT: Middle East, North Africa and Turkey 619 543 600 500 424 400 288 300 174 200 119 108 104 92 68 67 100 58 25* 30 0 ORGANIZATIONS INCUMBENTS JOBS 2,976 980K+
Slide 26: 2020 UAE Total Remuneration Survey Demographics
2020 UAE Total Remuneration Survey Demographics | Industry and Parent Nationality breakdown Manufacturing High Tech 2% 4% 10% 8% 15% 7% Energy 3% 11% Other Industries 5% 22% Consumer Goods 25% 11% Services 7% 34% Life Sciences 13% 5% Retail & Wholesale 18% 26 Source: 2020 Mercer UAE Total Remunerati
Slide 27: Data Sources
Data Sources 2020 UAE Total Remuneration Survey 2019 vs 2020 UAE Total Remuneration Survey Special Edition Survey (COVID-19 Poll) Company & Incumbent StableAnalysis Manufacturing High Tech Manufacturing 10% 8% Energy 10% 8% High Tech 8% Energy Manufacturing High Tech 9% Consumer 11% 10% Goods 10% Ot
Slide 28: Salary Movements 2020
Salary Movements 2020, Actual increases (median, including zeros / negative responses) ALL CONSUMER SALARY COUNTRY HIGH-TECH LIFE SCIENCE ENERGY INDUSTRIES GOODS FREEZE UAE 3.8% 3.0% 4.5% 3.5% 2.6% 19.4% Bahrain 3.8% 2.0% 4.5% 3.3% 1.9% 19.3% Jordan 4.5% 2.5% 4.8% 4.5% -- 18.0% Kuwait 3.0% 1.0% 4.5%
Slide 29: Salary Movements: Insights from COVID-19 Poll
Salary Movements Insights from COVID-19 Poll of organizations delayed salary 48.6% increases, most of them for 6 months organizations had their 2020 salary increases affected by COVID-19 stated salary increase levels were different than originally planned (incl. freezes) 29 Source: 2020 Mercer UAE S
Slide 30: Salary Movements 2021 Forecast
Salary Movements 2021, Forecast increases (median, including zeros / negative responses) ALL CONSUMER SALARY COUNTRY HIGH-TECH LIFE SCIENCE ENERGY INDUSTRIES GOODS FREEZE UAE 4.0% 4.0% 4.5% 3.8% 1.9% 13.4% Bahrain 3.0% 3.3% 4.5% 3.5% 0.8% 11.1% Jordan 4.5% 3.6% 5.0% 4.0% -- 7.9% Kuwait 4.0% 3.7% 4.8
Slide 31: Headcount Variance 2019 to 2020
Headcount Variance 2019 to 2020 Company and Incumbent Stable Analysis | Industry Source: 2019 and 2020 Mercer UAE Total Remuneration Survey
Slide 32: Hiring Intentions Forecast (2020-2021)
Hiring Intentions Forecast (2020-2021) 2020 15% 58% 9% 18% As of 2020 2021 15% 34% 3% 48% Increase Headcount No Change Decrease Headcount Not Decided © 2020 MERCER 32 Source: 2020 Mercer UAE Total Remuneration Survey
Slide 33: Hiring Intentions Slido Live Poll
Hiring Intentions Slido Live Poll 1. What is your organizations hiring intentions for the remainder of 2020? • Increase headcount • No change to headcount 18% • Decrease headcount • Not decided / Not known 2. What is your organizations hiring intentions for 2021? • Increase headcount • No change to
Slide 34: Headcount Movements: Insights from COVID-19 Poll
Headcount Movements Retail 6% Insights from COVID-19 Poll 3% 5% Energy 4% 4% Other Industries 7% 4% High Tech 4% 4% Head of Organization 0% Life Sciences 12% Executives 0% 3% Manufacturing Management 0% 9% Professional - Sales 10% 3% Services 3% Professional Non-Sales 10% 1% Support - "White Collar"
Slide 35: UAE Base Salary: Median Base Salary 2017-2020
UAE Base Salary Median Base Salary 2017 – 2020, in ‘000 of AED 700 +3% 5,0 4,5 4,5 600 4,2 4,0 3,8 500 3,5 3,1 3,0 400 2,5 +5% 300 2,0 200 1,5 -1% 1,0 -4% 100 0,5 0 0,0 Support Professionals Managers Executives 2017 2018 2019 2020 Same incumbents YOY © 2020 MERCER 35 Source: 2017 - 2020 Mercer UAE T
Slide 36: Base Salary Reductions: Insights from COVID-19 Poll
Base Salary Reductions Insights from COVID-19 Poll of organizations implemented base salary of organizations say the salary reductions in 2020 reductions were temporary Head of Organization 20% 63.6% Employee grade Executives 15% 27.3% Pay level Management 12% 18.2% All salaries decreased by same %
Slide 37: Base Salary Variance 2019 to 2020: Industry and Career Stream
Base Salary Variance 2019 to 2020 Company and Incumbent Stable Analysis | Industry and Career Stream Source: 2019 and 2020 Mercer UAE Total Remuneration Survey
Slide 38: Base Salary Variance 2019 to 2020: Job Family
Base Salary Variance 2019 to 2020 Company and Incumbent Stable Analysis | Job Family Source: 2019 and 2020 Mercer UAE Total Remuneration Survey
Slide 39: Guaranteed Cash: Industry vs General Market
Guaranteed Cash Industry vs General Market Logistics Retail & Wholesale Manufacturing Services Other Industries Insurance/Reinsurance Banking/Financial Services Chemicals Consumer Goods High Tech Energy Life Sciences -60% -40% -20% 0% 20% 40% 60% 80% 100% MANAGEMENT PROFESSIONAL SUPPORT © 2020 MERCE
Slide 40: Guaranteed Cash: Job Families vs All Families
Guaranteed Cash Job Families vs All Families Production & Skilled Trades Supply Chain Customer Service & Contact Center Operations Administration, Facilities & Secretarial Quality Management IT, Telecom & Internet Engineering & Science Finance Communications & Corporate Affairs Human Resources Sales
Slide 41: Short-Term Incentives 2019 Performance Year
Short-Term Incentives 2019 Performance Year | Target and Actual % by Industry 45% E: Executive M: Management 40% P: Professional 35% 30% 25% 20% 15% 10% 5% 0% E M P E M P E M P E M P E M P E M P E M P E M P E M P All Industries Consumer Goods High Tech Life Sciences Transportation Manufacturing Ener
Slide 42: Short-Term Incentives: Insights from COVID-19 Poll
Short-Term Incentives Insights from COVID-19 Poll of organizations forecast 2020 of organizations forecast no change to the 2020 performance year variable bonus/short- performance year variable bonus/short-term term incentives budget to be lower than incentives budget, compared to 2019 actual the ac
Slide 43: Sales Incentives: Insights from COVID-19 Poll
adjusted or are of organizations COVID-19 pandemic their sales incentive policy because of the considering adjusting Sales Incentives Sales Representatives 100% Source: 2020 Mercer UAE Special Edition Survey Sales Management 88% Sales Executives 79% Insights from COVID-19 Poll Field Sales (B2B) 71%
Slide 44: Allowances and Benefits: Insights from COVID-19 Poll
Allowances and Benefits Insights from COVID-19 Poll Impact on Flight / Home Leave Benefit: Have Adjusted annual home leave benefit/allowance for 7% 2020 of organizations have reduced Allowances in response to COVID-19. Considering adjusting annual Of these: Half was on a temporary basis, and half ho
Slide 45: Remote Working Arrangements: Insights from COVID-19 Poll
Remote Working Arrangements Insights from COVID-19 Poll of the organizations implemented remote working policy in response of the COVID-19 of the organizations had a remote working policy already in place, before COVID-19 • All functions of organizations will maintain current remote working policy u
Slide 46: Remote Working Arrangements Slido Live Poll
Remote Working Arrangements Slido Live Poll Due to COVID-19, has your organization implemented a permanent remote work policy? 18% • Yes • No • Yes, but on a temporary basis 48% To join the polls: On your mobile browser, type in www.slido.com then enter #UAETRS © 2020 MERCER 46
Slide 47: Flexible Working Arrangements: Insights from COVID-19 Poll
Flexible Working Arrangements Insights from COVID-19 Poll of the organizations implemented flexible working in response of the COVID-19 of the organizations had a flexible working policy already in place before COVID-19 • All functions of organizations foresee that employees will be more likely to u
Slide 48: Permanent flexibility - who's ready?
Permanent flexibility - who’s ready? Training for managers in 46% enabling flexible working Visible instances of career 46% progression for flexible workers More trust between the 42% organization and its employees Ability to measure and 41% reward contribution Better technology to enable 39% flexib
Slide 49: Wrap up and Closing Remarks
Wrap up and Closing Remarks Ted Raffoul, Career Products Leader | MENA, Mercer
Slide 50: Total Remuneration Survey (TRS): What you receive
Total Remuneration Survey (TRS) What you receive Mercer Job Library is a globally consistent catalog for Only in 2020, available in dozens of locations Mercer’s TRS offers full package including policy and Mercer's compensation and benefits surveys, providing globally, keeps HR professionals up to s
Slide 51: Industry Surveys and Supplements
Industry Surveys and Supplements Middle East Reports Engineering, Life Sciences Energy Industry Mercer Regional Industry Insurance Restaurants Construction Survey Oilfield Industry Survey and Real Industry -Middle East Supplement /Supplement Services Telecommunicatio Survey -Iraq –Oman – Estate Surv
Slide 52: Participants Dashboard
Participants Dashboard • Quick overview of your organization to help you understand; What is the overall market positioning? How are the job families paid compared to the market? What is diversity by gender? How competitive is you New hire pay? How is the Remuneration mix of the organizati
Slide 53: Mercer Learning: Higher-Performance HR of the Future
Mercer Learning Higher-Performance HR of the Future 53
Slide 54: Don't forget feedback
Don’t forget feedback www.imercer.com/feedback 54
Slide 55: welcome to brighter
welcome to brighter
Slide 56: Mercer
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Mercer — 2020 UAE Total Remuneration Survey Post-Survey Webinar on 6ix