Mercer Aspire Retirement Fund (ARF)

Aspire Retirement (ARF) invests in a diversified mix of assets, including bonds, cash, equities, alternatives, property and commodities. Mercer Global Investment Europe Limited oversees the allocations and may adjust the mix over time as its views change. This means the portfolio is designed to spread risk across different markets and asset types rather than rely on just one area.

Aspire Retirement (ARF) is designed for people approaching retirement who intend to use their retirement savings to take a Retirement Lump Sum and invest in an Approved Retirement Fund (ARF). Its objective is to provide suitable investments at retirement for that stage of life. In practice, the fund aims to match the needs of investors moving from accumulation into retirement income planning.

Aspire Retirement (ARF) is managed by Mercer using a mix of specialist active and passive managers. Mercer regularly monitors those managers and can replace them when needed, while also reviewing the asset and manager allocations over time. This active oversight means the portfolio can be adjusted as Mercer’s market views change.

Aspire Retirement (ARF) highlights inflation risk, currency risk and manager risk. Inflation risk means the fund’s value may not keep up with rising prices, currency risk means overseas investments can rise or fall when exchange rates move, and manager risk means performance can be affected by the decisions of the underlying investment managers. The fund also uses financial derivative instruments, which can magnify gains or losses.

Yes, Aspire Retirement (ARF) may use Financial Derivative Instruments and securities lending. Derivatives can be used to help achieve the investment objective, reduce risk, or manage the portfolio more efficiently, but they can also multiply gains or losses. Securities lending is used in a controlled way to try to generate extra return, and it is carried out under UCITS rules.