Mercer advises institutions with more than $16 trillion in assets. Here's what its top investment strategist is telling the world's biggest investors.

Every client is different, and we tend to come to things with a blank sheet of paper, but with that said, I think there are three main themes. One is to grab the higher real and nominal yields that are now available while they're still available. As we sit here today, we can get 3.82% nominal in a 10-year treasury; we can lock in a real yield of about 2.15%. That's down from what was available last October, but it's still a lot better than most of our recent lived history.

So grabbing those yields is a focus of a lot of investors. You can do that through private credit. You can do that through infrastructure debt. You can do that through real-estate debt. You can customize the duration of what you're investing in to match your objectives and how much liquidity risk you're taking. So that's very attractive and what's driving the interest in private credit.

So one is diversifying their portfolios, and that's driving increased interest in all the liquid alternatives, and then also in hedge funds, but not for all clients. There is continued strong interest in hedge funds from a subset of asset owners.

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