Fund Evaluator:

Mercer Non-US Core Equity Y3 Overview

Mercer Non-US Core Equity Y3 (MNCEX) is an actively managed International Equity Foreign Large Blend fund. Mercer Funds launched the fund in 2006.

The investment seeks to provide long-term total return, which includes capital appreciation and income. The fund invests principally in equity securities (such as common stock) issued by non-U.S. companies of any capitalization, located in the world's developed and emerging capital markets. It employs a "core equity" investment strategy that seeks to meet the fund's investment objective by investing in both growth- and value-oriented equity securities. Under normal circumstances, the fund will invest at least 80% of its net assets (plus borrowings for investment purposes, if any) in the equity securities of non-U.S. companies.

About Mercer Non-US Core Equity Y3 (MNCEX)

There are 19 members of the management team with an average tenure of 7.50 years: Puneet Mansharamani (2015), Gregory Ise (2026), Cassandra Hardman (2026), Benjamin Stone (2009), Henry Woo (2026), Manolis Liodakis (2012), Greg Sleight (2015), Guy Lakonishok (2015), Derek Vance (2018), Richard Fong (2015), Philip Evans (2020), Christopher Malloy (2019), Tamara Manoukian (2026), Zach Olsen (2022), Julia Yuan (2024), Josef Lakonishok (2015), Peter Rathjens (2010), James Pontone (2026), Menno Vermeulen (2015). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: MSCI World Ex USA IMI NR USD index with a weighting of 100% and MSCI EAFE NR USD index with a weighting of 100%. Mercer Non-US Core Equity Y3 has 1045 securities in its portfolio. The top 10 holdings constitute 11.1% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Mercer Non-US Core Equity Y3 is part of the Equity global asset class and is within the International Equity fund group. Mercer Non-US Core Equity Y3 has 92.4% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 6.0%. There is 92.4% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Mercer Non-US Core Equity Y3 has 1.6% of the portfolio in cash.

Assets Under Management

The fund has $4 billion in total assets, which is above the $2 billion average for the Foreign Large Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

MNCEX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Mercer Non-US Core Equity Y3 expense ratio is below average compared to funds in the Foreign Large Blend category. Mercer Non-US Core Equity Y3 has an expense ratio of 0.38%, which is 60% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Mercer Non-US Core Equity Y3 has a portfolio turnover rate of 67%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 62% for the Foreign Large Blend category.

Recently, in the month of August 2026, Mercer Non-US Core Equity Y3 returned 4.0%, which earned it a grade of A, as the Foreign Large Blend category had an average return of 2.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Mercer Non-US Core Equity Y3 has a trailing yield of 2.21%, which is above the 2.13% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Mercer Non-US Core Equity Y3 Grades

Year to date, the fund has returned 15.8%, 1.8 percentage points better than the category, which translates into a grade of B. The fund has returned 23.9% over the past year (grade of B), 21.7% over the past three years (grade of A) and 10.6% per year over the past five years (grade of A) and 11.3% per year over the past 10 years (grade of A).

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