Under a typical pension plan investment arrangement, the trustees directly appoint and legally contract with a series of individual investment managers. The trustees are then responsible for the ongoing monitoring of these managers and for firing underperforming managers as they deem fit.
Mercer launched its multi-manager business in 1995, aimed at helping trustees with these tasks.
“Many trustees simply don’t have the time or the expertise to hire and fire investment managers,” said Tom Murphy, who will head MGI’s UK operation from the headquarters in Dublin. “It’s an onerous task and a growing number want to delegate these decisions to investment experts.”
Murphy formerly held the same position for Mercer’s investment consulting operation in Ireland.
The roster of MGI executives in the UK also includes: Hooman Kaveh, who helped grow the multi-manager business at Irish Life, as chief investment officer; John Poole, the former head of operations of Russell Investment Group in London, as chief operating officer; and Dan Melley, most recently head of Mercer Investment Consulting’s defined contribution plan consulting group, as head of UK business.
Mercer’s European multi-manager operation will also have a satellite office in London.