Mercer Aspire Low Growth

Aspire Low Growth Portfolio invests in a diversified mix of assets, including bonds, cash, equities, alternatives, property and commodities. Mercer can shift the allocations over time as its views change, so the portfolio is actively rebalanced rather than fixed. It also uses specialist active and passive managers selected and monitored by Mercer.

Aspire Low Growth Portfolio is aimed at people who are satisfied with low levels of growth and who have a low tolerance for significant falls in value. Its long-term objective is cash return plus 1% to 2% a year, gross of charges, with target volatility of less than 5%, although that is not guaranteed. In plain language, volatility is how much an investment’s value tends to move up and down.

Aspire Low Growth Portfolio is managed by Mercer, through Mercer Global Investment Europe Limited. Mercer regularly reviews the underlying managers and asset allocations and may replace managers when needed. This means the portfolio can change over time as Mercer’s market views change.

Aspire Low Growth Portfolio is exposed to inflation risk, currency risk and manager risk. Inflation risk means the portfolio’s returns may not keep up with rising prices, which can reduce what the money buys over time. Currency risk means overseas investments can rise or fall when exchange rates move, and manager risk means the portfolio may be hurt if a chosen manager performs poorly.

Aspire Low Growth Portfolio may use Financial Derivative Instruments and may also use securities lending. Derivatives can be used to help achieve the objective, hedge investments or manage the portfolio more efficiently, but they can also multiply gains or losses. Securities lending is used with the aim of generating extra return in a low-risk manner and must follow UCITS rules.