March – June 2021: Investment update
This financial year, SmartPath® members have enjoyed positive investment returns four quarters in a row - our best year on record.
The majority of our members are invested in SmartPath®, our default investment option designed to move with you throughout your different life stage.
Your super is intentionally diversified and is invested across a range of asset classes including shares, property, infrastructure, bonds and cash so your money is protected from the extremes of investment markets, gradually lowering your exposure to risk, as you move closer to retirement age.
Our global team of 1,300 investment specialists seek the best investment opportunities in Australia and around the world. They monitor investment markets on a daily basis and adjust investment strategies where necessary, continuously working behind the scenes to help your super grow.
Low unemployment, a strong housing market, increased business activity and government spending have all contributed to the economic recovery seen in Australia.
The outlook has improved, however the new Delta variant of the coronavirus and the ever-changing landscape will continue to challenge the economic momentum into the second half of the year.
Global growth is set to strengthen as economies continue to re-open with governments and central banks committed to supporting jobs and economic activity.
Investment market update
Growth assets generated positive returns over the quarter. The stabilisation of bond yields combined with economic optimism helped to deliver strong results for Mercer Super members.
We believe we are in the early stages of a strong recovery, leading to strong earnings growth over the next couple of years, and thus benefit shares and other risk assets in our view.
Although we are seeing various countries recover, it’s important to note we are at different stages in our fight against COVID-19 globally. There are still many unknowns, however, we are confident in our ability to adapt to the changing landscape.
How your super is performing
SmartPath® investment options
The superannuation industry delivered strong returns over the 2020/2021 financial year, with the default option MySuper fund median performance at 17.9%, and the balanced option at 17.6%. Mercer SmartPath® generated returns of approximately 22% for the majority of our members - a significant outperformance when comparing us against other super funds.
For the quarter, SmartPath® delivered positive returns ranging from 3.9-6.2%. The strong tilt to growth assets for members under 57 years old, benefitting greatly from the outsized returns seen in listed sharemarkets over the past financial year. These members are enjoying solid investments returns well above the SuperRatings Default Options Survey median return over 1, 3, 5 and 7-years.*
For more information, visit SmartPath® investment option.
Ready-made investment options
Mercer Super members invested in the ready-made options also enjoyed a positive quarter for our diversified options, ranging 2.6-7.1%.
Our ready-made options continue to perform well, consistently achieving returns above the industry medians over the medium term. The Sustainable Plus Growth option has delivered strong results and is currently sitting in the top 10 of Sustainable Investment Balanced funds over five years.
Mercer Super ready-made investment options give members the freedom to invest their super in a range of pre-packaged diversified portfolios. They are designed to help members achieve their individual investment strategies, while aligning to individual risk appetites.
For more information, visit Ready-made option.
Login to your online account to view or update your individual investment strategy.
*Measured by the median of all default funds as reported in the SuperRatings Default Options Survey June 2021.
This information is of general nature only and does not take into account your personal financial situation, needs or objectives. As we don't know your financial needs we can't advise if Mercer Super will suit you. Please consider the Product Disclosure Statement, Product Guide, Insurance Guide, and Financial Services Guide before making a decision about the product.