The move enables Mercer to achieve a well-diversified global credit exposure without the drawbacks of market capitalisation index tracking strategies, it said in a statement. 

SmartBeta is designed such that it is not unduly exposed to either systemic or event risk at an issuer, sector or regional level. This means that bonds that are deemed to offer the best value are equally weighted in the portfolio.

As at March 2014, AXA IM manages some A$2.5 billion in SmartBeta equity and A$1.8 billion in SmartBeta credit. 

Part of Mercer's responsibilities as a consultant is to provide clients with investment advice and solutions, including strategy, structure and implementation.