Unit pricing errors hit two Mercer funds

Investors in Mercer's Passive Global Listed Property Fund and Cash Fund have been hit with unit pricing errors.

The Passive Global Listed Property Fund reported incorrect unit prices between 8 December 2025 to 5 February 2026 and 10 February 2026 to 5 March 2026.

Mercer Investments Australia, as the responsible entity, said in a notice "unit prices for these periods will not be reissued because we have compensated the fund as well as the investors who have been negatively impacted."

"We have undertaken a detailed review of transactions during this period to identify investors who have been disadvantaged as a result of this error," the notice read, dated March 31.

Affected investors have been compensated by having additional units issued to them. They will also receive a separate communication to confirm the issue of these units.

The fund has also been compensated "to ensure that remaining investors have not been disadvantaged."

Mercer declined to comment on what caused the unit pricing error and what the compensation amounted to.

The fund passively invests in global listed property shares using a single investment manager. It has about $906 million in assets under management and returned 7.4% annually, according to Morningstar.

In a separate notice, Mercer told investors the Mercer Cash Fund has also been reporting the wrong unit prices.

This specifically affected the cash units between 11 December 2025 to 20 January 2026 and term deposit units for the period 24 November 2025 to 20 January 2026.

After undertaking a detailed review of transactions during the periods to identify investors who were disadvantaged, Mercer said affected investors have been compensated by having additional units issued to them, where the value exceeded $1. Mercer will reach out to them to confirm the issue of the additional units.

"The fund has also been compensated to ensure that remaining investors have not been disadvantaged. Therefore, the unit prices for these periods will not be reissued," the notice read.

Mercer also declined to comment on the unit pricing errors related to the Cash Fund.

Separately, Mercer will terminate its $53 million Australian Shares Plus Fund due to its "subscale size" on May 7. The fund was incepted in 2005 and returned 7.6% p.a.

Early this year, Mercer severed ties with several fund managers overseeing its international shares strategies following a strategic review that included retaining Schroder Investment Management and awarding mandates to two new fund managers.