GLOBAL - Mercer Human Resources Consulting has hived off its fund of managers business into a separate division called Mercer Global Investments in a bid to "manage" potential conflicts of interest.
Mercer Global Investments, which will be responsible for implemented consulting and multi manager investment products, is to be headed by Gary Burke. The new business will operate out of Sydney.
“The decision to run this business separately from Investment Consulting recognises the differences between the two activities and will ensure both are managed effectively. The separation will also assist with management of potential conflicts of interest,” said Mercer in a statement.
Tim Gardener, global head of Mercer Investment Consulting said: “The aim is to develop this business in other countries over time. The multi manager business exists in some form in the US through Mercer DIS [Directed Investment Services] and this will be folded into Mercer Global Investments.”
Commenting on the existing multi-manager business in Australia, he said: “The nature of the Australian market is such that when we set up the business there at that time there was no need to have a multi manager offering on a global basis. Time has moved on and we now feel that we need to have this business on a global scale.”
Mercer’s master trust business in Australia - Mercer Super Trust has grown rapidly to AUS$7bn. As a natural progression, this business is likely to be absorbed by Mercer Global Investments in the near future.
Burke, who has over 16 years’ experience in investment management and research, has been CIO at Zurich Scudder and Deutsche Funds Management.
Mercer CEO Peter Promnitz, said: “It was very important to secure acandidate with the right combination of investment management skills and with the capability to build Mercer’s business and profile in managing multi-manager investment funds.”
“We are delighted to have Gary join the team. His background in senior management within the financial services sector spans investment, sales and business development across all facets of wholesale and retail funds management, as well as financial planning and research. Gary is the ideal choice to spearhead the Mercer Global Investments business.”
In August 2004, Mercer had announced the appointment of Brian Storms to head up its new fund of managers' business and oversee the full range of Mercer’s new outsourcing offering.
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