Mercer Aspire Active Global Equity Hedged

Active Global Equity Hedged invests in a diversified mix of international equities. The fund is actively managed, with Mercer selecting specialist managers and regularly reviewing the underlying holdings. Its portfolio includes large global companies such as Alphabet, Microsoft, Apple and Taiwan Semiconductor, so it is broadly spread across regions and sectors.

Active Global Equity Hedged hedges its currency exposures back into euro, which means the fund tries to reduce the impact of exchange-rate moves on returns for euro-based investors. Currency risk is the chance that changes in foreign exchange rates can help or hurt investment returns. The fund still invests globally, but the currency exposure is managed back to euro.

Active Global Equity Hedged is described as suitable for people with more than seven years to retirement and/or investors willing to accept rises and falls in value in pursuit of long-term growth. The fund’s objective is to achieve long-term growth and to outperform its benchmark over the long term, gross of charges. It may therefore suit investors with a longer time horizon who are comfortable with equity market volatility.

Active Global Equity Hedged uses an active approach rather than simply tracking an index. Mercer Global Investment Europe Limited chooses specialist active managers, monitors them regularly and can replace them when needed. The allocations to managers and equities are also reviewed over time, so the portfolio can change as Mercer adjusts the strategy.

Active Global Equity Hedged is exposed to inflation risk, currency risk and manager risk. Inflation risk means the fund’s returns may not keep up with rising prices, reducing buying power over time. Manager risk means the chosen managers may make poor investment decisions or underperform, which could hurt returns.