Mercer Aspire Cash Portfolio

Aspire Cash Portfolio invests across a range of cash investments and near-cash instruments. Mercer reviews the mix of managers and cash holdings regularly and may change them over time. The portfolio uses specialist active managers, which means it relies on professional stock-picking and allocation decisions rather than tracking a market index.

Aspire Cash Portfolio is designed for people within seven years of retirement who expect to take a cash lump sum at retirement. It is positioned for investors who want capital preservation and a very low target volatility of less than 0.5%. The Aspire Cash Portfolio may suit someone prioritising stability over higher growth.

Aspire Cash Portfolio targets very low volatility, but its value can still fall and there is no guarantee of capital preservation. Its returns are expected to reflect market interest rates, so they may move when interest rates change. The portfolio also carries inflation risk, currency risk and manager risk; currency risk means overseas investments can lose value if exchange rates move unfavourably.

Aspire Cash Portfolio is an actively managed investment portfolio rather than a bank deposit. Mercer selects and monitors the underlying cash managers, and can replace them when needed. Unlike a savings account, the Aspire Cash Portfolio does not offer a guarantee that the value will not fall.

Aspire Cash Portfolio does not take account of the EU criteria for environmentally sustainable economic activities in its underlying investments. In other words, it is not designed to screen holdings based on those specific EU sustainability rules. Investors looking for a sustainability-focused cash portfolio may therefore need to consider other options.