Mercer Short Duration Fixed Income Fund Class Y-3 · NASDAQ:MSDYX
Mercer Short Duration Fixed Income Fund Class Y-3 — Mercer — Debt Investor Presentation (November 2020)
22 slides from Mercer Short Duration Fixed Income Fund Class Y-3's debt investor presentation, Nov 18, 2020
Slide 1: US Election update, and the need for portfolio speed
Investment webinar US Election update, and the need for portfolio speed Rupert Watson Head of Asset Allocation, Europe Anthony Brown Director of Capital Markets, US Aisling Doherty Senior Fixed Income Portfolio Manager 18 November 2020 - for professional investor use only. Copyright © 2020 Mercer. A
Slide 2: Welcome
Welcome Rupert Watson– Head of Asset Allocation, Europe Copyright © 2020 Mercer. All rights reserved.
Slide 3: US Election results
US Election results Anthony Brown – Director of Capital Markets, US Copyright © 2020 Mercer. All rights reserved.
Slide 4: 2020 US election results
2020 US election results President House Senate 270 electoral votes to win 218 for majority 51 for majority 232 203 +7 seats 50 -1 seats 290 219 -6 seats 48 +1 seats 16 13 2 Republican Democrat Processing Source: Associated Press, as of 11/16/20 Copyright © 2020 Mercer. All rights reserved.
Slide 5: Economic implications of a Biden administration
Economic implications of a Biden administration Democratic Senate Republican Senate $2-$3T stimulus bill More modest stimulus bill $2T infrastructure and green energy No increases in corporate or household taxes investment Potential for scaled-down infrastructure plan Partial rollback TC
Slide 6: US Economy Trajectory
US Economy Trajectory Fiscal Policy Impact Vaccine Impact 2021 to gather pace Near term softening Copyright © 2020 Mercer. All rights reserved.
Slide 7: Other potential impacts on US economy
Other potential impacts on US economy Trade War Clean Brexit Tensions Energy Countdown Copyright © 2020 Mercer. All rights reserved.
Slide 8: The wider lens
The wider lens Rupert Watson– Head of Asset Allocation, Europe Copyright © 2020 Mercer. All rights reserved.
Slide 9: Illustrative example of recovery profile
Illustrative example of recovery profile Sharp bounce in Q3 (stage 1) followed by a long, continuous recovery (stage 2) TREND 2% 100 NO PERMANENT DAMAGE IF PERMANENT DAMAGE Full recovery point 110 105 100 Stage 2, fundamental recovery 95 Stage 1, pick up in grow th because of the reopening 90 Q4 19
Slide 10: Global Dynamic Asset Allocation (DAA) Dashboard Main Asset Classes 2020 Q4
Global Dynamic Asset Allocation (“DAA”) Dashboard Mercer’s current position/view Position/view Q3 (if changed) Main Asset Classes 2020 Q4 Overweight Neutral weight Underweight LISTED EQUITIES GROWTH FIXED INCOME DEFENSIVE FIXED INCOME CASH* * In lieu of cash, investors might consider liquid alpha-or
Slide 11: Ready to capture opportunities
Ready to capture opportunities 14% High Yield Option-Adjusted Spread 12% Very overweight 10% Very Overweight 8% A little overweight Neutral 6% Neutral 4% 2% 0% Jan 15 Jul 15 Jan 16 Jul 16 Jan 17 Jul 17 Jan 18 Jul 18 Jan 19 Jul 19 Jan 20 Jul 20 Model portfolio tactical credit weightings added value o
Slide 12: Ready, set, go
Ready, set, go Aisling Doherty – Senior Fixed Income Portfolio Manager Copyright © 2020 Mercer. All rights reserved.
Slide 13: The 2020 spread compression trade
The 2020 spread compression trade Global High Yield Spreads vs. Historic Median 1250 Decisions placed on behalf of clients Option adjusted spread (basis points) 1000 750 500 250 Dec 19 Feb 20 Apr 20 Jun 20 Aug 20 Oct 20 ICE BofAML Global High Yield Global High Yield Long-term Median Operational read
Slide 14: Give yourself choices
Give yourself choices High yield bonds… active or passive? Single or multi manager? Broader sub investment grade… loans, securitised, CLOs, emerging markets Sustainability lens… how is this being considered? Engagement vs screening? Have a menu of options available to take advantage of the opportuni
Slide 15: Be future world ready
Be future world ready A+ Strategy and Governance Manager ESG Assessments A All Asset Classes Sustainable Options Develop a plan, be prepared, embrace the change Copyright © 2020 Mercer. All rights reserved.
Slide 16: Q&A
Q&A Copyright © 2020 Mercer. All rights reserved.
Slide 17: Thank you
Thank you For further information and materials, please visit www.mercer.com Investment solutions: www.mercer.com/what-we-do/investment-solutions.html Please send us any questions by email to MercerInvestmentSolutions@mercer.com Copyright © 2020 Mercer. All rights reserved.
Slide 18: Appendices
Appendices Copyright © 2020 Mercer. All rights reserved.
Slide 19: 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 20: Important Notices for UK/ex US investors
Important Notices for UK/ex US investors - for professional investor use only. References to Mercer shall be construed to include Mercer LLC and/or its associated companies. © 2020 Mercer LLC. All rights reserved. This contains confidential and proprietary information of Mercer and is intended for t
Slide 21: Important Notices for US Investors
Important Notices for US Investors References to Mercer shall be construed to include Mercer LLC and/or its associated companies. © 2020 Mercer LLC. All rights reserved. This contains confidential and proprietary information of Mercer and is intended for the exclusive use of the parties to whom it w
Slide 22: Mercer Limited regulatory information
Mercer Limited is authorised 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 Copyright © 2020 Mercer. All rights reserved.