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Marsh & McLennan's (MMC) Unit Surpasses the $390 Billion Mark

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Marsh & McLennan Companies, Inc.'s (MMC - Free Report) business unit Mercer announced that its global assets under management (AUM) have crossed the $390-billion mark as of Mar 31, 2021. This is undoubtedly a milestone for Mercer, which witnessed a rise in demand for investment solutions of late amid economic volatility and low interest rates. As a leading company in retirement and investment solutions, the business unit is striving hard to provide investors with the right solutions.

With the outbreak of COVID-19, more and more investors became interested in investment solutions. Mercer helped them tide over the liquidity crisis and the extreme economic turmoil. Investors who tried tapping prospects, such as high yield and private debt amid market depression were also benefited.

After achieving the $321.4-billion mark in AUM last December, the unit strived harder to reach strategic goals. From Dec 31, 2019 to Dec 31, 2020, the arm added more than 100 clients.

Mercer saw a significant change in its client base last year. Notably, almost 50% new assets are being derived from a wide range of non-defined benefit pension asset owners including insurers and endowments among others. Besides, from January 2016 to April 2021, defined contribution and other types of non-pension assets rose 245% as various kinds of asset owners reworked to set better and cost-efficient investment strategies.

Mercer’s Investment Solutions and OCIO services benefited from other asset owners, such as wealth managers, insurers, not-for-profit healthcare companies, and defined contribution asset pools and foundations.
Investors are looking for better ways to handle their portfolios, especially because of the current market turbulence and fee pressures. They are also seeking new governance models to better manage their portfolios for long-term prospects.

The currently Zacks Rank #3 (Hold) company witnessed a series of outsourcing the investment management of DC plans from corporate plan sponsors from mid-market to mega sized plans.

All these factors are boosting interest in investment solutions across the company’s client base.

Price Performance

Shares of Marsh & McLennan have gained 28.2% in a year compared with the industry’s growth of 28%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

Zacks Investment ResearchImage Source: Zacks Investment Research

The company’s peers, namely Arthur J. Gallagher & Co. (AJG - Free Report) , Brown & Brown, Inc. (BRO - Free Report) and Aon plc (AON - Free Report) have also rallied 49.7%, 23.8% and 27.1%, respectively, in a year’s time.

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