Responding to sponsors’ increasing interest in higher returns and more transparent fees, Mercer Investment Consulting will stray away from its tradition of recommending mutual funds, Defined Contributions & Savings Plan Alert reports.
The defined contribution consulting firm will recommend alternatives to mutual funds more frequently, said Jeff Gabrione, head of Americas manager research. In particular, he said, they are interested in separate accounts, collective investment trusts, real estate investment trusts, treasury inflation protected securities and more favorable share classes and want more information on expense ratios.
“There has been such scrutiny on fees recently. It is my job to stay on top of what is out there,” Gabrione said.
But as investment choices multiply, Mercer will be sure to provide due diligence, said Rich Nuzum, Americas business leader.