The Mercury International Fund - Class Hedged Equities will primarily but not exclusively invest in Brazilian or Brazil-related public equities issued or guaranteed by state or private entities in the local or international markets, seeking medium and long-term capital appreciation at lower levels of volatility than those of Class Equities. To achieve its objective, the Fund will invest, both long and short, in common stock of large, medium and small-cap companies. Using the same strategy and investing in a similar portfolio as Class Equities, the Fund will employ hedging strategies to reduce the exposure of its portfolio to market risk, by using a variety of instruments, but mostly the sale of stock future indexes contracts and short sale of shares and futures. The Fund may be completely hedged against overall stock market risk (market neutral), can take short positions of up to 50% of its equity (net short) or be exposed up to 50% of overall stock market risk (net long). The net long position of up to 50% of the NAV may be constituted of a long portfolio of up to 100% of the NAV of the Fund. The Fund may also use hedging strategies in order to avoid losses caused by depreciation of currency exchange rate.