Mercer has launched a diversified growth fund for its workplace savings offering.
The fund, which will make up the core of the default offering, will give members access to asset classes and investment strategies not usually open to them.
The fund is suitable for defined contribution (DC) schemes, in terms of liquidity and costs with allocations to assets such as emerging markets (both debt and equity), low-volatility equities, corporate bonds, commodities and property.
Mercer will actively manage the fund’s asset allocation on an ongoing basis, whereas the individual building blocks will consist predominantly of passive funds to drive the cost of fees down.
The underlying asset classes in the fund will also be subject to Mercer’s assumptions around DC investments and the fund will remain flexible to accommodate new investment opportunities.
Emma Douglas, head of Mercer Workplace Savings, said: “We aim to give DC scheme members an opportunity to achieve better outcomes in retirement.
“Based on Mercer’s well-established knowledge of how asset classes interact with each other there is no need to spend money on expensive underlying funds.
"The key is how you put the portfolio together and how it can influence the end result at retirement.”
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