Quarterly performance update**
October to December 2024
Financial markets finished 2024 on a high note, resulting in solid quarterly and calendar year returns for many Mercer Super members1– with international shares as the standout performer across asset classes.2
To read more including detailed performance information download the full report.
Super performance
Mercer SmartPath®
While past performance does not guarantee future investment returns, our default investment option, Mercer SmartPath, has consistently delivered solid returns over both the short and longer term for the majority of members invested in Mercer SmartPath.3
Q4 2024
Mercer SmartPath continued to deliver positive results for members over the final three months of 2024, with December quarter returns ranging between 2.1% to 3.4% - this saw the majority of Mercer SmartPath members enjoying returns at or above the industry default median of 2.2%.3
2024 calendar year
Most Mercer SmartPath members enjoyed double digit returns over the 2024 calendar year as well, ranging from 10.2% to 14.9%4 – marking the second calendar year in a row that most SmartPath members have benefitted from double digit returns.5
Over the longer term
Over the longer term – where super is best measured – all Mercer SmartPath members continue to enjoy positive returns over 10-years.6
Most members aged 55 and under benefitted from returns ranging from 7.8% to 8.2% per year on average for the last 10-years – well above the industry default median of 7.2%.3
Mercer SmartPath takes a whole of life approach to investing your super, by seeking to shield member balances from big swings in share markets in the years leading up to retirement. SmartPath does this by reducing exposure to growth assets, while increasing exposure to defensive assets. This has the potential to result in more stable returns and reduces the level of investment risk. As a result, members over age 55 who have reduced exposure to growth assets, enjoyed returns ranging from 5.2% to 7.6% over 10 years.6
Mercer SmartPath vs Default Option median
(after tax and investment fees) 31 December 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 31 December 2024.
Past performance should not be relied upon as an indicator of future performance.
Ready-made diversified investment options
Q4 2024
The December 2024 quarter was also a positive one for our Ready-made diversified choice options, with returns ranging from 1.3% for Mercer Conservative Growth to 3.5% for Mercer Diversified Shares.7
The options with the highest returns were those with a larger exposure to growth assets generating greater returns, being Mercer Diversified Shares and Mercer High Growth.
2024 calendar year
Closing out the 2024 calendar year, all options performed either equal to or above their respective peer group median, delivering returns ranging between 7% for Mercer Conservative Growth, and 16.6% for Mercer Diversified Shares.7
Over the longer term
Over the longer term, most of these options delivered returns either equal to or above their respective peer group medians over 3, 5, 7 and 10 years.7
Economic and investment market update8
Given the depreciation of the Australian dollar relative to the US dollar, unhedged9 international shares were the standout performer across asset classes for Q4.
- Strong US growth relative to other economies, along with strong tech stock gains, pushed investors to continue to favour US stocks. International shares ended the quarter with positive gains of 1.9% (hedged) and 12.1% (unhedged). These returns were a continuation of the positive performance that saw 2024 calendar year returns of 20.7% (hedged) and 31.2% (unhedged).
- Australian shares delivered a small negative return in Q4 2024 of -0.8%, however enjoyed double digit gains of 11.4% over calendar year 2024, driven by strong performance across Information Technology, Financials and Real Estate sectors.
- While International and Australian bonds delivered positive returns of 0.4% and 2.3% respectively, over the course of 2024, bond yields rose in Q4 resulting in negative returns of -2% and -0.6% respectively, over that period.
Looking ahead
**Past performance is not a reliable indicator of future performance. The value of an investment in Mercer Super may rise and fall from time to time. The investment performance, earnings or return of capital invested are not guaranteed.
Related:
Mercer SmartPath
Great investors fine-tune their portfolio over time. Mercer SmartPath is designed to do this for you automatically, so you can invest like the experts, without lifting a finger.
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Read next:
Market volatility and your super
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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. The value of an investment in Mercer Super may rise and fall from time to time. The investment performance, earnings or return of capital invested are not guaranteed.
1. Based on Mercer Super Corporate Super Division membership data as at 31 December 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 31 December 2024. 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 31 December 2024.
2. Mercer Super Trust analysis of financial market asset class returns - Quarterly report to 31 December 2024. The MSCI World ex Australia (Net Index) reflecting the performance of the International Shares (Unhedged) asset class performed 20.7% for the 2024 calendar year.
3. Based on Mercer SmartPath Corporate Super Division membership data as at 31 December 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 31 December 2024.
4. Based on Mercer SmartPath Corporate Super Division membership data as at 31 December 2024 and for members invested for the entire corresponding time period. Mercer Super Trust analysis of Mercer SmartPath performance (after investment fees and taxes) for the 2024 calendar year.
5. Based on Mercer SmartPath Corporate Super Division membership data as at 31 December 2023 and for members invested for the entire corresponding time period. Mercer Super Trust analysis of Mercer SmartPath performance (after investment fees and taxes) for the 2023 calendar year.
6. Based on Mercer SmartPath Corporate Super Division membership data as at 31 December 2024 and for members invested for the entire corresponding time period. Mercer Super Trust analysis of Mercer SmartPath performance (after investment fees and taxes) for the 10-years to December 2024. All Mercer SmartPath cohorts with members aged under 55 (with the exception of cohorts Born 2004-2008, Born 2009-2013 and Born 2014-2018 which have not yet reached 10 years since inception) returned at least 7.8% (after investment fees and taxes) for the 10-years to December 2024.
7. 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 31 December 2024.
8. Mercer Super Trust analysis of financial market asset class returns - Quarterly report to 31 December 2024.
9. The aim of currency hedging is to reduce the impact of exchange rates on investments and can have a positive or negative impact on the value of your investments. A hedged investment employs strategies to manage movements in exchange rates, while an unhedged investment is exposed to changes in exchange rates.
Issued by Mercer Superannuation (Australia) Limited (MSAL) ABN 79 004 717 533, Australian Financial Services Licence 235906, the trustee of the Mercer Super Trust ABN 19 905 422 981 (‘Mercer Super’).
Any advice provided is of a general nature and does not take into account your objectives, financial situation or needs. Before acting on any advice we recommend you obtain your own financial advice and consider the Product Disclosure Statement available at mercersuper.com.au. The product’s Target Market Determination setting out the class of people for whom the product may be suitable can be found at mercersuper.com.au/tmd.
This information is based on information received in good faith from sources we believe to be reliable and accurate. Any reference to legislation reflects our understanding of the legislation and is not a substitute for legal advice. Before making any decision concerning the impact and application of laws to your circumstances, we recommend you obtain your own legal or other appropriate professional advice. No warranty as to the accuracy or completeness of this information is given and no responsibility is accepted by Mercer or any of its related entities for any loss or damage arising from any reliance on the information.
Past performance is not a reliable indicator of future performance The value of an investment in Mercer Super may rise and fall from time to time. The investment performance, earnings or return of capital invested are not guaranteed.
Ratings are likely to change and are only one factor to be taken into account when deciding to invest in a product.
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