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Annual Outcomes Assessments: February 2021

Each year Mercer Super is required to assess our performance against other super funds and determine whether our products promote the financial interests of our members.

When carrying out our assessment, we consider a number of factors including:

  • investment options
  • investment performance
  • costs and fees
  • insurance options and fees
  • overall size and scale of our fund

We’ve assessed our performance for the year ending 30 June 2020 and are pleased to confirm we believe our products promote the financial interests of our members.

Click on the link below to find the assessment summary for your product(s):

Please note: Each annual assessment is split into two stages. The Trustee has decided to place equal weighting on both assessment stages when making its determination. Both assessment stages examine outcomes according to various different factors. We summarise each outcomes assessment in the tables below:

  • green indicates it is clear financial interests are promoted
  • amber indicates financial interests are mostly promoted
  • red indicates that further improvement is required to ensure financial interests are promoted.

Mercer SmartPath MySuper Annual Outcomes Assessment

The annual assessment is split into two stages. The Trustee has decided to place equal weighting on both assessment stages when making its determination.
 
We’ve assessed the performance of Mercer SmartPath and determined that it’s promoting the financial interests of our members as at 30 June 2020 based on the below factors
 
Both assessment stages examine outcomes according to various different factors. We summarise each outcomes assessment in the table below. Green indicates it is clear financial interests are promoted, Amber indicates financial interests are mostly promoted, and Red indicates that further improvement is required to ensure financial interests are promoted.
 
Stage 1
 
Factor  Rating 

Investment returns

Members’ financial interests are mostly promoted.

Investment returns, after deduction of all fees, costs and taxes, are above average over 1, 3 and 5 years for the majority of members compared to other super funds. 

However, some members have received lower returns where we have designed investments to be less volatile.

Investment risk

Members’ financial interests are promoted.

Consistent with the Mercer SmartPath investment strategy, the level of investment risk is higher relative to other MySuper products for younger members and lower for older members.

Fees

Further improvement is required to ensure members’ financial interests are promoted. 

Whilst investment returns, after deduction of all fees, costs and taxes, are above average compared to other super funds over 1, 3 and 5 years for the majority of members, fees for members who joined Mercer SmartPath as an individual were in the most expensive group compared to all MySuper products at 30 June 2020.

So we’ve taken action to improve this outcome by reducing total administration and investment fees by around 0.24% for members on the highest fee level.

In addition, members who joined Mercer SmartPath via their employer often receive a discount due to their size and have fees that are lower than the standard fees.

Stage 2

Factor  Rating 

Options, benefits and facilities

Members’ financial interests are promoted.

Member services rated top 3 in 2020 by Chant West compared to all other retail and industry funds.

Overall Net Promoter Score of +13 compared with the industry average of -10.

Investment strategy

Members’ financial interests are promoted.

Annual review of investments completed and small adjustments made to the investment strategy to improve member outcomes. Overall, the investment strategy was concluded to be appropriate.

Insurance strategy

Members’ financial interests are promoted.

We compared our insurance design to our competitors and found our insurance strategy supports member needs.

Insurance fees

Members’ financial interests are promoted.

The majority of members are expected to have insurance fee (premiums) less than 1% of salary which will better ensure insurance fees do not inappropriately erode the retirement income of members.

Scale

Members’ financial interests are promoted.

Scale has been obtained given the product forms part of the Mercer Super Trust. This allows access to significant staffing levels, bargaining power and risk pooling.

Operating cost

Members’ financial interests are promoted.

Outsourced service providers have contracts negotiated regularly and benchmarked to other potential providers. Latest benchmarking concluded that all providers met the market standards on pricing, service levels and quality for funds similar to the Mercer Super Trust.

Fee structure

Members’ financial interests are promoted.

Fees charged to members are directly linked to underlying investment costs and outsourced service providers costs.

 

Mercer Tailored (CRG) MySuper Annual Outcomes Assessment

The annual assessment is split into two stages. The Trustee has decided to place equal weighting on both assessment stages when making its determination.
 
We’ve assessed the performance of Mercer Tailored (CRG) MySuper and determined that it’s promoting the financial interests of our members as at 30 June 2020 based on the below factors: 
 
Both assessment stages examine outcomes according to various different factors. We summarise each outcomes assessment in the table below, where Green indicates it is clear financial interests are promoted, Amber indicates financial interests are mostly promoted, and Red indicates that further improvement is required to ensure financial interests are promoted.

Stage 1

Factor  Rating 

Investment returns

Members’ financial interests are promoted.

Investment returns, after deduction of all fees, costs and taxes, are above average over 1, 3 and 5 years for the majority of members compared to other super funds.

However, some members have received lower returns where we have designed investments to be less volatile.

Investment risk

Members’ financial interests are promoted.

Consistent with the Mercer Tailored (CRG) MySuper investment strategy, the level of investment risk is higher relative to other MySuper products for younger members and lower for older members.

Fees

Members’ financial interests are promoted.

The fees for Mercer Tailored (CRG) MySuper members are below average, with older members having some of the least expensive fees when compared to all other MySuper products.

Stage 2

Factor  Rating 

Options, benefits and facilities

Members’ financial interests are promoted.

Member services rated top 3 in 2020 by Chant West compared to all other retail and industry funds.

Overall Net Promoter Score of +13 compared with the industry average of -10.

Investment strategy

Members’ financial interests are promoted.

Annual review of investments completed and small adjustments made to the investment strategy to improve member outcomes. Overall, the investment strategy was concluded to be appropriate.

Insurance strategy

Members’ financial interests are promoted.

We compared our insurance design to our competitors and found our insurance strategy supports member needs.

Insurances fees

Members’ financial interest are promoted.

The majority of members are expected to have insurance fee (premiums) less than 1% of salary which will better ensure insurance fees do not inappropriately erode the retirement income of members.

Scale

Members’ financial interest are promoted.

Scale has been obtained given the product forms part of the Mercer Super Trust. This allows access to significant staffing levels, bargaining power and risk pooling.

Operating cost

Members’ financial interests are promoted.

Outsourced service providers have contracts negotiated regularly and benchmarked to other potential providers. Latest benchmarking concluded that providers met the market standards on pricing, service levels and quality for funds similar to the Mercer Super Trust.

Fee structure

Members’ financial interests are promoted.

Fees charged to members are directly linked to underlying investment costs and outsourced service providers costs.

 

Mercer Santos MySuper Annual Outcomes Assessment

The annual assessment is split into two stages. The Trustee has decided to place equal weighting on both assessment stages when making its determination.
 

We’ve assessed the performance of Mercer Santos MySuper and determined that it’s promoting the financial interests of our members as at 30 June 2020 based on the below factors: 

Both assessment stages examine outcomes according to various different factors. We summarise each outcomes assessment in the table below, where Green indicates it is clear financial interests are promoted, Amber indicates financial interests are mostly promoted, and Red indicates that further improvement is required to ensure financial interests are promoted.

Stage 1

Factor  Rating 

Investment returns

Members’ financial interests are promoted.

Investment returns, after all fees and taxes, are above average compared to other super funds over 3 and 5 years for all members while 1 year returns were slightly below average given a significant allocation to growth assets.

Investment risk

Members’ financial interests are promoted.

The level of investment risk of the Mercer Santos MySuper product is below average and compares favourably to all other MySuper products.

Fees

Members’ financial interests are promoted.

Total fees and costs of the Mercer Santos MySuper product are below average when compared to all other MySuper products.

Stage 2

Factor  Rating 

Options, benefits and facilities

Members’ financial interests are promoted.

Member services rated top 3 in 2020 by Chant West compared to all other retail and industry funds.

Overall Net Promoter Score of +13 compared with the industry average of -10.

Investment strategy

Members’ financial interests are promoted.

Annual review of investments completed and small adjustments made to the investment strategy to improve member outcomes. Overall, the investment strategy was concluded to be appropriate.

Insurance strategy

Members’ financial interests are promoted.

We compared our insurance design to our competitors and found our insurance strategy supports member needs.

Insurances fees

Members’ financial interests are promoted.

The majority of members are expected to have insurance fees (premiums) less than 1% of salary which will better ensure insurance fees do not inappropriately erode the retirement income of members.

Scale

Members’ financial interests are promoted.

Scale has been obtained given the product forms part of the Mercer Super Trust. This allows access to significant staffing levels, bargaining power and risk pooling.

Operating cost

Members’ financial interests are promoted.

Outsourced service providers have contracts negotiated regularly and benchmarked to other potential providers. Latest benchmarking concluded that all providers met the market standards on pricing, service levels and quality for funds similar to the Mercer Super Trust.

Fee structure

Members’ financial interests are promoted.

Fees charged to members are directly linked to underlying investment costs and outsourced service providers costs.

 

 
 

Mercer WGSP MySuper Annual Outcomes Assessment

The annual assessment is split into two stages. The Trustee has decided to place equal weighting on both assessment stages when making its determination.

We’ve assessed the performance of Mercer WGSP MySuper and determined that it’s promoting the financial interests of our members as at 30 June 2020 based on the below factors:

Both assessment stages examine outcomes according to various different factors. We summarise each outcomes assessment in the table below, where Green indicates it is clear financial interests are promoted, Amber indicates financial interests are mostly promoted, and Red indicates that further improvement is required to ensure financial interests are promoted.

Stage 1

Factor  Rating 

Investment returns

Members’ financial interests are promoted.

Investment returns, after deduction of all fees, costs and taxes, are above average over 1, 3 and 5 years for the majority of members compared to other super funds. 

However, some members have received lower returns where we have designed investments to be less volatile.

Investment risk

Members’ financial interests are promoted.

Consistent with the Mercer WGSP MySuper investment strategy, the level of investment risk is higher relative to other MySuper products for younger members and lower for older members.

Fees

Members’ financial interests are promoted.

The fees for Mercer WGSP MySuper members are below average, with older members having some of the least expensive fees when compared to all other MySuper products.

Stage 2

Factor  Rating 

Options, benefits and facilities

Members’ financial interests are promoted.

Member services rated top 3 in 2020 by Chant West compared to all other retail and industry funds.

Overall Net Promoter Score of +13 compared with the industry average of -10.

Investment strategy

Members’ financial interests are promoted.

Annual review of investments completed and small adjustments made to the investment strategy to improve member outcomes. Overall, the investment strategy was concluded to be appropriate.

Insurance strategy

Members’ financial interests are promoted.

We compared our insurance design to our competitors and found our insurance strategy supports member needs.

Insurances fees

Members’ financial interests are promoted.

The majority of members are expected to have insurance fees (premiums) less than 1% of salary which will better ensure insurance fees do not inappropriately erode the retirement income of members.

Scale

Members’ financial interests are promoted.

Scale has been obtained given the product forms part of the Mercer Super Trust. This allows access to significant staffing levels, bargaining power and risk pooling.

Operating cost

Members’ financial interests are promoted.

Outsourced service providers have contracts negotiated regularly and benchmarked to other potential providers. Latest benchmarking concluded that providers met the market standards on pricing, service levels and quality for funds similar to the Mercer Super Trust.

Fee structure

Members’ financial interests are promoted.

Fees charged to members are directly linked to underlying investment costs and outsourced service providers costs.

 
MST (CSD/APD) Choice products Annual Outcomes Assessment 

The annual assessment is split into two stages, however as Stage 1 applies to MySuper products, only Stage 2 assessments are applicable for MST Choice.

We’ve assessed the performance of MST Choice and determined that it’s promoting the financial interests of our members as at 30 June 2020 based on the below factors: 

Both assessment stages examine outcomes according to various different factors. We summarise the relevant outcomes assessment in the table below, where Green indicates it is clear financial interests are promoted, Amber indicates financial interests are mostly promoted, and Red indicates that further improvement is required to ensure financial interests are promoted.


Stage 2*

 
Factor  Rating 

Options, benefits and facilities

Members’ financial interests are promoted.

Member services rated top 3 in 2020 by Chant West compared to all other retail and industry funds. 

Overall Net Promoter Score of +13 compared with the industry average of -10.

Investment strategy

Members’ financial interests are promoted.

Annual review of investments completed and small adjustments made to some Choice option investment strategies to improve member outcomes.

Overall, the investment strategies were concluded to be appropriate.

Insurance strategy (CSD only)

Members’ financial interests are promoted.

We compared our insurance design to our competitors and found our insurance strategy supports member needs.

Insurances fees (CSD only)

Members’ financial interests are promoted.

The majority of members are expected to have insurance fees (premiums) less than 1% of salary which will better ensure insurance fees do not inappropriately erode the retirement income of members.

Scale

Members’ financial interests are promoted.

Scale has been obtained given the product forms part of the Mercer Super Trust. This allows access to significant staffing levels, bargaining power and risk pooling.

Operating cost

Members’ financial interests are promoted.

Outsourced service providers have contracts negotiated regularly and benchmarked to other potential providers. Latest benchmarking concluded that providers met the market standards on pricing, service levels and quality for funds similar to the Mercer Super Trust.

Fee structure

Members’ financial interests are promoted.

Fees charged to members are directly linked to underlying investment costs and outsourced service providers costs.

 
*Please note: stage 1 only applies to MySuper products which is why only stage 2 is available for MST Choice's (CSD superannuation and Pension) Annual Outcomes Assessment.

Mercer Easy Choice products Annual Outcomes Assessment

The annual assessment is split into two stages, however as Stage 1 applies to MySuper products, only Stage 2 assessments are applicable for Mercer Easy Choice.

We’ve assessed the performance of Mercer Easy Choice and determined that it’s promoting the financial interests of our members as at 30 June 2020 based on the below factors: 

Both assessment stages examine outcomes according to various different factors. We summarise the relevant outcomes assessment in the table below, where Green indicates it is clear financial interests are promoted, Amber indicates financial interests are mostly promoted, and Red indicates that further improvement is required to ensure financial interests are promoted.

 
Stage 2*
 
Factor  Rating 

Options, benefits and facilities

Members’ financial interests are promoted.

Member services rated top 3 in 2020 by Chant West compared to all other retail and industry funds.

Overall Net Promoter Score of +13 compared with the industry average of -10.

Investment strategy

Members’ financial interests are promoted.

Annual review of investments completed and small adjustments made to some Choice option investment strategies to improve member outcomes.

Overall, the investment strategies were concluded to be appropriate.

Insurance strategy (Mercer Easy Super only)

Members’ financial interests are promoted.

We compared our insurance design to our competitors and found our insurance strategy supports member needs.

Insurances costs (Mercer Easy Super only)

Members’ financial interests are promoted.

The majority of members are expected to have insurance fees (premiums) less than 1% of salary which will better ensure insurance fees do not inappropriately erode the retirement income of members.

Scale

Members’ financial interest are promoted.

Scale has been obtained given the product forms part of the Mercer Super Trust. This allows access to significant staffing levels, bargaining power and risk pooling.

Operating cost

Members’ financial interest are promoted.

Outsourced service providers have contracts negotiated regularly and benchmarked to other potential providers. Latest benchmarking concluded that providers met the market standards on pricing, service levels and quality for funds similar to the Mercer Super Trust.

Fee structure

Members’ financial interest are promoted.

Fees charged to members are directly linked to underlying investment costs and outsourced service providers costs.


*Please note: stage 1 only applies to MySuper products which is why only stage 2 is available forMercer Easy Choice's Annual Outcomes Assessment.
Contact Mercer Super AU for all of your superannuation and financial planning queries.
Mercer Super Trust: 1800 682 525, +61 3 8306 0900

Pension: 1800 671 369, +61 3 8306 0906

8am - 7pm (AEST/AEDT), Monday - Friday




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