Mercer Aspire Emerging Markets Debt

Emerging Markets Debt invests through specialist active managers in a diversified mix of local-currency government and corporate bonds from global emerging markets. It primarily invests in government bonds, with countries such as Brazil, Mexico, South Africa, Turkey and Poland featuring among the largest holdings. The fund is designed to give broad exposure to emerging-market debt rather than a single country or issuer.

Emerging Markets Debt may suit people with more than seven years to retirement and investors who are comfortable with rises and falls in value in pursuit of long-term growth. The fund aims to achieve long-term growth and to outperform its benchmark over the long term, gross of charges. As a bond fund investing in emerging markets, it is aimed at investors who can tolerate a higher level of volatility than many developed-market bond funds.

Emerging Markets Debt is actively managed by Mercer Global Investment Europe Limited using a selection of specialist external managers. Mercer regularly reviews the manager allocations and can change them over time. That means the fund's exposure is adjusted by the manager selection process rather than simply tracking an index.

Emerging Markets Debt carries inflation risk, currency risk and manager risk. Currency risk means the value of the fund can move when exchange rates change, which matters because many of its bonds are linked to local emerging-market currencies. Manager risk means the fund could underperform if the chosen managers make poor investment decisions.

Yes, Emerging Markets Debt may use securities lending on a portion of the fund. Securities lending is intended to generate additional returns in a low-risk manner, and it must follow UCITS regulations. This feature is designed to add a small extra source of return rather than change the fund's main investment approach.