Mercer Investment Consulting has announced that it completed its acquisition of Hammond Associates, effective January 3, 2011.

Terms of the agreement were not disclosed.

Mercer will build upon Hammond’s position as the third largest investment consulting firm serving endowments and foundations in the US. The acquisition further enhances Mercer’s alternative research and investment capabilities and provides additional consulting opportunities in the private wealth and health care markets.

The acquisition of Hammond strengthens Mercer’s position in one of the fastest-growing segments of investment consulting in the US. In the period 2005 to 2009, endowment and foundation funds using investment consulting services grew at a compound rate of 10% annually, compared to a 5% annual rate of growth for both corporate and public funds in the US1.

“This acquisition underscores Mercer’s commitment to our investment business and our determination to increase our US market share,” said Jeff Schutes, Mercer’s US investment consulting leader. “Mercer is growing at a time when clients are demanding greater resources and depth of expertise from their investment consultants. The acquisition pairs Mercer’s global reach and expertise with Hammond’s leadership in US endowment and foundation consulting, and with its significant reputation in private wealth and health care sectors.

“In the current challenging investment market, we believe the Hammond acquisition will significantly improve our ability to help clients make informed, sound and strategic investment decisions,” said Schutes. “It underscores our commitment to meeting the growing needs of our clients and to invest in the investment consulting business. It will also enable us to provide strategic consulting and to demonstrate our depth of expertise in alternative investments such as private equity, hedge funds, and infrastructure. We feel this will be a significant competitive advantage in a changing market environment. “