Quarterly performance update
July to September 2024
Returns for the quarter were positive across the board with all Mercer Super members enjoying positive returns.1
To read more, including detailed performance information, download the full report below.
Super performance
Mercer SmartPath®
Our default investment option, Mercer SmartPath delivered solid returns to most members over the quarter, with returns ranging between 3.1% to 4.7%.2 For Q3 2024, 91% of members invested in Mercer SmartPath received returns above the industry default median of 3.9%.2
In addition, all Mercer SmartPath members enjoyed double digit returns for the 12 months up to 30 September 2024, ranging from 10.6% to 17.1%.2
While over the longer term – where super is best measured – all Mercer SmartPath members under the age of 60 continued to enjoy returns above the industry median over 1, 3, 5, 7 and 10-year timeframes.2
Mercer SmartPath vs Default Option median
(after tax and investment fees) as at 30 September 2024
Mercer Super Trust’s analysis of Mercer SmartPath (born 1974-1978), compared to the median of all default funds reported in SuperRatings Fund Crediting Rate Survey – Default Options as at 30 September 2024. Past performance should not be relied upon as an indicator of future performance.
Ready-made investment options
It was also another positive quarter for our ready-made investment options with returns ranging from 3.1% to 5.3%.3 The best performing options were those with higher exposure to growth assets such as Mercer High Growth and Mercer Diversified Shares.
Over the longer-term, our ready-made options are mostly performing above their respective peer group medians over 3, 5, 7 and 10-year periods.3
Economic and investment market update4
On the economic front, with inflation in Australia remaining high, the Reserve Bank of Australia made the decision to keep the cash rate unchanged once again at 4.35% p.a. This was contrary to the rest of world where we saw inflation easing and central banks, including the US, cutting interest rates.
- As a result of these lower interest rates, both Australian and International shares markets benefited and performed well over the September quarter, returning 7.8% for Australian shares, and 4.4% for International shares (hedged).
- In International government bond markets, the lower interest rates had a positive effect on fixed income assets, yielding a return of 3.9% on a hedged basis for the July to September quarter.
Looking ahead
Related:
Mercer SmartPath
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Read next:
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Investment risk and your super
Risk is something many of us naturally avoid, especially when it comes to our personal well-being or our finances. Reward on the other hand, is a word that draws us in. When it comes to investing, risk and reward are intrinsically linked.
Diversification and your super
We all know the phrase “don’t put all your eggs in one basket”. If you drop your only basket, you break all your eggs. But if you have many baskets and you drop one, you have eggs to spare. That’s diversification in a nutshell.
Past performance is not a reliable indicator of future performance
1. Based on Mercer Super Corporate Super Division membership and performance data as at 30 September 2024 and for members invested for the entire corresponding time period.
2. Based on Mercer SmartPath membership data as at 30 September 2024 and for members invested for the entire corresponding time period. Mercer Super Trust’s analysis of Mercer SmartPath, compared to the median of all default funds reported in SuperRatings Fund Crediting Rate Survey – Default Options as at 30 September 2024
3. Mercer Super Trust’s analysis of Mercer Super’s Ready-made diversified investment options in the Corporate Super Division, compared to its respective growth asset ratio fund survey’s median as reported in SuperRatings Fund Crediting Rate Survey as at 30 September 2024.
4. Mercer Super Trust analysis of financial market asset class returns - Quarterly report to 30 September 2024.
Issued by Mercer Superannuation (Australia) Limited ABN 79 004 717 533, Australian Financial Services Licence #235906, the trustee of the Mercer Super Trust (‘Mercer Super’) ABN 19 905 422 981. The material contained on this website is based on information received in good faith from sources within the market and on our understanding of legislation and government press releases at the date of publication which we believe to be reliable and accurate. Neither Mercer nor any of its related parties accepts any responsibility for any inaccuracy. Prior to acting on any information contained on this website, you need to consider the appropriateness of the advice taking into account your own objectives, financial situation and needs, consider the Product Disclosure Statement for any product you are considering, and seek professional advice from a licensed, or appropriately authorised financial adviser if you are unsure of what action to take. The product Target Market Determination can be found at mercersuper.com.au/tmd. The value of an investment in the Mercer Super Trust may rise and fall from time to time. The investment performance, earnings or return of capital invested are not guaranteed. All performance figures stated above are for investment options available in the Corporate Super Division of the Mercer Super Trust. Past performance is not a reliable indicator of future performance. MERCER’ and ‘Mercer SmartPath®’ are Australian registered trademarks of Mercer (Australia) Pty Ltd ABN 32 005 315 917.