Mercer Opportunistic Fixed Income Fund Class I (MOFTX)

Overview

This investment fund focuses on allocating a significant portion of its assets into fixed income securities, showing a preference for diversifying its investment portfolio across various types of debt instruments. By committing at least 80% of its net assets, plus any borrowed funds for investment purposes, to fixed income securities, the fund demonstrates a clear strategic direction towards generating returns from interest-bearing investments. Catering to investors with varying risk tolerances, the fund includes bank loans, loan participations, as well as senior and subordinated debt securities within its investment spectrum. Additionally, its strategy encompasses investing in non-investment grade bonds, commonly referred to as "high yield" or "junk bonds," and bonds issued by entities in emerging capital markets, indicating a willingness to engage with higher-risk, potentially higher-reward assets.

Products and Services

• Fixed Income Securities

  The fund dedicates a substantial part of its portfolio to fixed income securities, such as bonds, which provide regular interest income. This category is foundational to the fund's strategy, aimed at investors seeking predictable returns and lower risk compared to equity markets.

• Bank Loans and Loan Participations

  Investing in bank loans and loan participations allows the fund to partake in debt instruments that are not publicly traded, potentially offering higher yields. These investments involve providing capital to companies in exchange for interest payments, and, due to their private nature, might carry higher risk.

• Senior and Subordinated Debt Securities

  The fund's involvement in both senior and subordinated debt securities offers a tiered approach to risk and return. Senior debt offers more security in case of issuer default, typically resulting in lower yields, while subordinated debt carries higher risk and potentially higher returns.

• Non-Investment Grade Bonds

  Also known as "high yield" or "junk bonds," these are bonds issued by companies that are considered to carry a higher risk of default. The fund invests in these to potentially enhance returns, accepting the elevated risk levels associated with these securities.

• Bonds Issued by Issuers in Emerging Capital Markets

  By investing in bonds from emerging capital markets, the fund seeks to capitalize on the growth potential in these regions. These investments carry both the risk of political instability and economic volatility, but can also offer high returns, diversifying the investment portfolio.