Diversified Investment Funds 

The Mercer Indexed Funds provide investors with access to a range of diversified and asset class-based funds that aim to provide a low-cost alternative to invest in the market. For those investors applying directly, you can get started with a minimum investment of $500,000.

Cost effective access to global investments through diversified investment funds

What are Index Funds?

Index funds (also known as passive funds) aim to replicate the performance of a financial index, like the Australian ASX 300 or the US NASDAQ.

An index comprises all available investments (or a specific component) in a particular market or sector, such as Australian shares, property, or fixed interest. It measures the performance of a market or sector over time.  Index funds invest in the same securities (or a representative sample) as the index they track and continually rebalance to ensure they remain aligned with the index allocations.

Investors in an index fund have indirect access to the income and growth of the securities in the index.

When the value of the index rises, the value of the fund generally rises but if the value of the index falls, so typically does the fund. Whilst active managers and funds aim to provide a return in excess of a benchmark, index funds target similar returns (before fees) as the benchmark itself. 

The Mercer Indexed Funds

Mercer offers two categories of index funds:

  1. The Mercer Indexed Diversified Funds invest across a range of asset classes to provide investors with a diversified portfolio.
  2. The Mercer Indexed Sector Funds provide index-based exposure to a single asset class and may be used as building blocks for investors choosing to create their own diversified asset portfolio.

Mercer Indexed Diversified Funds

The Mercer Indexed Diversified Funds cover five different risk profiles, from lower to higher risk. The asset allocations vary across shares, property, fixed interest, and cash, based on both Mercer’s view of market and investment conditions and the objectives and investment strategy of each Fund.

Each Fund is constructed predominantly from the Mercer Indexed Sector Funds to create a diversified exposure across all major asset classes. 

The Fund seeks to deliver predominantly high growth returns, which tracks the overall return of a diversified portfolio of underlying investments. The minimum suggested investment timeframe for the fund is 7 years.

The Fund seeks to deliver predominantly moderate to high growth and some income returns which tracks the overall return of a diversified portfolio of underlying investments. The minimum suggested investment timeframe for the fund is 6 years.

The Fund seeks to deliver predominantly moderate growth and some income returns which tracks the overall return of a diversified portfolio of underlying investments. The minimum suggested investment timeframe for the fund is 5 years.

The Fund seeks to provide investors with a combination of income and stable growth returns which tracks the overall return of a diversified portfolio of underlying investments. The minimum suggested investment timeframe for the fund is 4 years.

The Fund seeks to provide investors with predominantly income and some growth returns, with a low probability of loss over the short term which tracks the overall return of a diversified portfolio of underlying investments. The minimum suggested investment timeframe for the fund is 3 years.

More information

You can find the current Fact Sheets,  Product Disclosure Statements and Target Market Determinations here.

The ratings issued on 04/2023 for WFS0588AU, WFS0589AU, WFS0590AU, WFS0591AU and WFS0592AU are published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2024 Lonsec. All rights reserved.

Mercer Indexed Sector Funds

For investors who want to build their own diversified portfolios or wish to invest in a sector specific fund as part of their overall portfolios we have a range of asset class-based index funds. 

The Mercer Indexed Australian Fixed Interest Index Fund seeks to provide income derived from Australian fixed interest securities with a total investment return (before fees and taxes) that tracks the benchmark, the Bloomberg AusBond Composite 0+ Yr Index. The Fund invests in a wide range of Australian interest bearing securities, such as Commonwealth, State and corporate bonds, as included in the benchmark.

The Mercer Indexed International Shares Fund seeks to provide long term capital growth from a diversified portfolio of international shares with a total investment return (before fees and taxes) that tracks the benchmark, the MSCI World ex Australia (Standard) Index (Net Dividends) in Australian dollars.

The Fund invests in a wide range of international shares listed (or expected to be listed) on world stock exchanges, as included in the benchmark.

The Mercer Indexed Australian Listed Property Fund seeks to provide long term capital growth together with tax advantaged income through investment in Australian property securities with a total investment return (before fees and taxes) that tracks the benchmark, the S&P/ASX 300 A-REIT Accumulation Index.  The Fund invests in a wide range of Australian property securities listed (or expected to be listed) on the Australian Securities Exchange, as included in the benchmark.

The Mercer Indexed International Fixed Interest Fund seeks to provide income derived from international fixed interest securities with a total investment return (before fees and taxes) that tracks the benchmark, the Bloomberg Barclays Global Aggregate Bond Index (fully hedged) in Australian dollars.  The Fund invests in a wide range of international interest bearing securities such as Commonwealth, State and corporate bonds, as included in the benchmark.

The Mercer Indexed Australian Shares Fund seeks to provide long term capital growth from a diversified portfolio of Australian shares with a total investment return (before fees and taxes) that tracks the benchmark, the S&P/ASX 300 Accumulation Index.  The Fund invests in a wide range of Australian shares listed (or expected to be listed) on the Australian Securities Exchange, as included in the benchmark.
You can find the current facts sheets, Product Disclosure Statements and Target Market Determinations here.

Benefits of the Mercer Indexed Funds

  1. Broad market exposure 
    Investors can obtain exposure to a portfolio that seeks to deliver the market return of a specific asset class or a diversified portfolio of asset classes.
  2. Investment returns
    Depending on the fund selected, the potential for income or long term capital growth.
  3. Cost effective
    Index funds can be accessed at a lower cost than either personally investing in the individual securities or investing in active management which researches and analyses the securities to invest in. Mercer’s size and scale also delivers competitive pricing for investors in this passive space.
  4. Expert investment oversight
    Be confident that Mercer is managing the asset allocation and administration of the Mercer Diversified Indexed Funds, as well as monitoring your investment in line with market conditions.

How to access the Mercer Indexed Funds

You can invest in the Mercer Diversified Indexed Funds or Mercer Sector Indexed Funds directly, with a minimum investment of $500,000, or via an investment platform depending on your needs.

The Mercer Indexed Diversified Funds are available on the BT Panorama, Asgard platforms and CFS EDGE platforms. 

The Mercer Indexed Sector Funds are available on the BT Panorama and Asgard platforms. 

The Mercer difference

Mercer’s global and local expertise in asset allocation provide a strong base for the development and ongoing management of diversified portfolio solutions for clients. Mercer’s global scale allows us to offer a comprehensive suite of investment tools, advice, and solutions to meet investors’ specific needs and objectives.

Introducing some of our team

    See our Important Notices and Product information for all Financial Service Guides, fund factsheets, product disclosure statements and performance information.
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