Mercer Global Investments, the multi-manager that operates at arm's length from Mercer Investment Consulting, has awarded its first mandates.

The manager appointments mark the launch of Mercer's fund management business in Europe, two years after Mercer first made its ambitions known. The business was developed by Brian Storms, who joined Mercer from UBS Global Asset Management in 2004. He was promoted to chairman and chief executive of Marsh, a subsidiary of Marsh & McLennan in September last year. Mercer Global Investments Europe will start with nine funds covering bonds and equities while Mercer provides manager research. European equities will be run by Axa Rosenberg, Cazenove and Merrill Lynch Investment Management with no passive allocation. UK equities are split between AllianceBernstein and Origin Asset Management with a passive allocation to Legal & General Investment Management. In US equities, Mercer invests with Davis, Pzena Investment Management, Intech and Sands Capital Management and there is a passive allocation to Irish Life Investment Management. Japanese equities are managed by JP Morgan Asset Management and Axa Rosenberg. Pacific equities, excluding Japan, will be managed by Axa Rosenberg. Hooman Kaveh, chief investment officer of Mercer Global Investments in Dublin, said other managers had been identified for the Pacific equities fund, which would be hired when assets have grown. In global emerging markets, Mercer will invest between Lazard Asset Management and Threadneedle Investments with regional mandates assigned to Baring Asset Management for eastern Europe, Schroders and Axa Rosenberg for Asia and Threadneedle for Latin America. Pimco will run the active parts of the global, European and UK bond funds. Irish Life will run the passive component of the European fund and L&G IM the passive part of the UK bond fund. Mercer Global Investments has taken $500m in client money. The clients will continue to make their own asset allocation between the funds.