2020 was a strong year for ESG-oriented strategies (Environmental, Social, and Governance), helping to solidify ESG as a legitimate approach to portfolio construction and management. ESG investing provides strategic and diversified values-based investing solutions for investors of all stripes.
Despite the many challenges wrought by 2020, last year was without a doubt another strong year for ESG-oriented strategies. Returns for ESG oriented strategies in most asset classes were exceptionally strong and, in many cases, outperformed their respective benchmarks. Product choice also continued to expand as more asset managers launched more products across a growing set of asset classes. With increased competition has of course come lower fees and a growing set of product enhancements. And, finally, most exciting in our view, is a continuing trend that Mercer Advisors has long been at the forefront of—cutting edge innovation with respect to portfolio management and customization.
ESG solutions are assessed using the same considerations we use for all investments. Returns, risks, diversification, and costs are all important considerations in any investment, and ESG solutions are no exception.
We understand ESG investing isn’t for everyone; we all have our own preferences. Our ESG offering is about providing clients more choices when customizing their portfolios. We offer the ability to do so with best-in-class, low-cost mutual funds, ETFs, or individual securities. We also have an unrivaled set of technological capabilities whereby we can easily screen out specific companies or even entire industries or sectors. But let’s not forget that ESG investing is, after all, still about investing. As with all investing, risk, returns, and fees are critically important. You can be confident that all of us at Mercer Advisors will continue to diligently monitor and manage all three on your behalf.
1Source: YCharts, Inc.; Fund Prospectus for DFSIX.
2Source: Portfolio Management Consultants (PMC)
3Sources: FactSet, Inc.; Morningstar, Inc. “Expense” refers to the underlying mutual fund, ETF, or SMA net expense ratio or, in the case of SMAs, the maximum manager fee. “Expense” does not include Mercer Advisors advisory fees.
Mercer Global Advisors Inc. (“Mercer Advisors”) is registered as an Investment Adviser with the SEC. The firm only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements.
Some of the research and ratings shown in this presentation come from third parties that are not affiliated with Mercer Advisors. The information is believed to be accurate, but is not guaranteed or warranted by Mercer Advisors. This presentation is not a substitute for a client-specific suitability analysis conducted by you and your advisors. You and your advisor must determine the suitability of a particular investment based on the characteristics and features of the investment and relevant information provided by you, including, but not limited to, your existing portfolio, investment objectives, risk profile, and liquidity needs. Investments mentioned in this document may not be suitable for all investors. For financial planning advice specific to your circumstances, talk to a qualified professional at Mercer Advisors.