The Tuvalu Trust Fund has appointed Mercer for asset consulting, portfolio implementation services and investment implementation services, reports the Financial Standard.
In a statement, Mercer says it will provide portfolio implementation services and serve as asset consultant for the fund’s $200 million (US$139 million) portfolio, while the investment implementation component relates to three additional funds overseen by the board of the Tuvalu Trust Fund. These are the Consolidated Investment Fund, Climate Change and Disaster Survival Fund, and the Falekaupule Trust Fund.
The aim of the mandates is to strengthen the fund’s long-term viability and capacity as a reliable source of revenue for the island nation. They also reflect the growing maturity of the fund which has grown significantly in the last decade, Tuvalu Trust Fund board and Minister of Finance Seve Paeniu said.
“Mercer’s multi-manager approach allows us access to best-in-class managers, as well as a broad range of investment styles and asset classes, while ensuring alignment with our investment beliefs. Diversification in these factors allows us to take full advantage of the long-term nature of the fund to improve returns without the cost of additional risk,” he said.
The integration of ESG factors is particularly important given Tuvalu is especially susceptible to the adverse impacts of climate change, he noted.
“By outsourcing our investment implementation to Mercer, we can stay true to our investment purpose, beliefs and objectives, leaving resource intensive tasks to those that have specialist capabilities,” Paeniu said.
“We look forward to working with the Mercer team to take the fund from strength to strength, ensuring its sustainability for future generations.”