A strength of the steward is the longest-tenured portfolio managers’ average tenure of 12 years at the firm, bringing a wealth of experience to the table. Looking at the firm's risk-adjusted performance, the product lineup compares similarly to competitors. Across its open-end and exchange-traded funds, the firm's average 10-year Morningstar Rating is 3.0 stars. Portfolio management turnover at Mercer is higher than at peer firms, detracting from the overall assessment of the firm's stewardship. Turnover in the portfolio-management ranks can happen for a number of reasons, including mergers and liquidations, portfolio managers moving into other roles, or portfolio managers leaving the firm. In some cases, such change may not signal a serious or immediate problem at the firm, but can still be disruptive for investors, hinder the effectiveness of a firm’s investment processes, or suggest a weaker investment culture.
A Checklist for Open Enrollment Season
If you’re signing up for employer-provided benefits, don’t just re-up for last year’s choices.