Mercer Aspire Euro Bond

Euro Bond invests through passive managers in a diversified mix of euro-denominated fixed income securities. That includes investment-grade government and corporate bonds, with cash also part of the asset mix. The fund is designed to give broad exposure to euro bond markets rather than picking individual bonds actively.

Euro Bond is aimed at people with more than seven years to retirement and/or investors who are willing to accept rises and falls in value in pursuit of long-term growth. It may suit someone looking for bond-market exposure over a long horizon rather than short-term income needs. The fund name Euro Bond refers to the euro-focused bond allocation it provides.

Euro Bond aims to achieve long-term growth and, over the long term, to perform in line with its benchmark before charges. It does this by using passive managers, and Mercer regularly reviews the manager allocations so they can change over time. The fund name Euro Bond reflects this benchmark-tracking euro bond approach.

Euro Bond is exposed to inflation risk, currency risk and manager risk. Inflation risk means rising prices can reduce the real value of bond returns; currency risk means exchange-rate moves can affect returns when holdings are not all in the same currency; and manager risk means changes in the managers used, or how they implement the strategy, can affect outcomes. As with other bond funds, its value can still go up and down.

Euro Bond is invested across several European markets, with France featuring prominently among the top holdings. Its geographic allocation also includes Germany, Italy, Spain, the Netherlands, Belgium, Austria, Luxembourg, the United Kingdom and the United States. The fund name Euro Bond is consistent with this mainly European bond exposure.