The new service reflects the growing interest investors are paying to foreign exchange execution costs.
Through the service, pension funds and other institutional investors can request reviews of all spot and forward FX transactions undertaken at multiple trading locations to determine the competitiveness of transactions undertaken on their behalf.
"Institutional investors are increasing their attention on sources of performance leakage. In part this has been prompted by recent experience that shows funds and managers are at considerable risk of incurring significant excess foreign exchange transaction costs," Mercer Sentinel Asia-Pacific director Lounarda David said.
"The market is becoming aware that if there is no transparency, the risk of paying too much is high and this can impact fund performance. Our foreign exchange transaction cost analysis service provides clear insights into the sources of excess costs, recommendations on how to address sources of performance leakage and advice on how to structure FX arrangements as part of a long-term solution."
