Mercer Aspire Passive Global Equity Unhedged

Passive Global Equity Unhedged invests in a diversified mix of international equities by tracking selected international equity indices through specialist passive managers. Mercer also includes an allocation to emerging markets equity, which has been part of the fund since February 2019. The fund may hold temporary cash positions as part of portfolio management.

Passive Global Equity Unhedged aims to achieve long-term growth by matching a composite benchmark, before charges. It does this in a passive way, meaning it seeks to follow the performance of the chosen indices rather than trying to outperform them through active stock picking. Mercer regularly monitors the managers and the indices and replaces them where necessary.

Passive Global Equity Unhedged is described as suitable for 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. Its international equity focus means it is designed for investors who can stay invested over a long period. The fund name includes "Unhedged," so investors should be aware that foreign currency movements can affect returns; currency risk means exchange-rate changes can make overseas investments worth more or less in local currency terms.

Passive Global Equity Unhedged highlights inflation risk, currency risk and manager risk. Inflation risk means the fund’s returns may not keep up with rising prices, which can reduce what your money buys in the future. Currency risk means exchange-rate changes can affect the value of the overseas investments, and manager risk means outcomes can be affected by the managers chosen to track the indices.

Passive Global Equity Unhedged seeks to promote environmental characteristics under Article 8 of the Sustainable Finance Disclosure Regulation. Its ESG approach states that the "do no significant harm" principle applies only to investments that take into account the EU criteria for environmentally sustainable economic activities. The remaining investments in the fund do not take those EU sustainability criteria into account.