Mercer and Vanguard announced this week that the former is buying the latter's outsourced chief investment officer business, which provides investment management services for not-for-profit organizations and other institutional investors in the United States.
As part of the agreement, Vanguard's roughly 120-person outsourced CIO team is expected to transfer to Mercer as full-time employees, upon completion of the transaction, which is expected to be in the first quarter of 2024.
In a statement, Marc Cordover, Mercer's U.S. investments and retirement head, says the acquisition of Vanguard's outsourced CIO unit will bolster its existing outsourced investment management and alternatives capabilities.
As Cordover notes, institutional investors and not-for-profit organizations continue to face a range of challenges, and there is increasing demand for global investment expertise to stay ahead of the curve.
