Using the most recent returns and fund update reports from February 2022, we will examine Mercer’s recent KiwiSaver Performance.
Mercer currently manages seven funds under their KiwiSaver scheme, which each fund varies in levels of risk from cash up to shares fund. Currently, Mercer delivers bespoke solutions to 92,889 clients with an asset under management of over NZ$2.35 billion.
In February 2022, the market experienced a high volatility volume due to the debacle between Russia and Ukraine. The sanctions, coupled with restrictions on a limited number of Russian banks from the SWIFT payments platforms, drove global markets into a sell-off linked to Russia’s assets.
Table of Contents
News about Mercer
Performance of Mercer KiwiSaver Funds
Mercer Cash Fund
Mercer Sustainable Conservative Fund
Mercer Sustainable Plus Moderate Fund
Mercer Sustainable Plus Balanced Fund
Mercer Sustainable Plus Growth Fund
Mercer Sustainable Plus High Growth Fund
Mercer Sustainable Plus Shares Fund
News about Mercer
Mercer KiwiSaver scheme has yet again proven to achieve a platinum rating from SuperRating, reflecting as “Best Value for Money”, while also being the only provider to obtain this accolade for eight consecutive years.
Performance of Mercer KiwiSaver Funds
|
1 month |
3 months |
1 year |
5 years |
|
|
Cash |
0.04% |
0.11% |
0.21% |
0.92% |
|
Sustainable Conservative |
-1.23% |
-2.43% |
0.88% |
3.20% |
|
Sustainable Plus Moderate |
-1.33% |
-2.70% |
2.67% |
4.25% |
|
Sustainable Plus Balanced |
-1.83% |
-3.72% |
4.52% |
5.85% |
|
Sustainable Plus Growth |
-2.29% |
-4.65% |
6.51% |
7.30% |
|
Sustainable Plus High Growth |
-2.57% |
-5.47% |
7.79% |
8.62% |
|
Sustainable Plus Shares |
-2.96% |
-6.96% |
5.44% |
9.40% |
Sourced from Mercer fund performance report
* These returns are to 28 February 2022 and are before tax and after fund management fees. Past performance is not necessarily an indicator of future performance, and return periods may differ.
Note: The following information is sourced from Mercer Quarterly Fund updates published on 31 December 2021.
Mercer Cash Fund
Mercer Cash fund invests mainly in cash and short term interest-bearing investments, catered towards investors who want no exposure to growth assets or for investors that may need the funds in the shorter term. The cash fund has had a 1-month and 1-year return of 0.04% and 0.21%, far below the 5-year return of 0.92%. This means the fund is producing returns, but not at the expected performance level.
*The following is Sourced from Mercer Cash Fund Update
Returns
Fees
The total annual fees for investors in the Mercer Cash Fund are 0.34% per year until 31 August 2020, and the manager’s basic fee has been reduced to 0.28%.
Investment mix
The investment mix is 100% cash and cash equivalents due to being a Cash Fund.
Top ten investments
This table shows Mercer’s top 10 investments in the Cash KiwiSaver Fund, which make up 33.16% of the fund.
Mercer Sustainable Conservative Fund
Mercer Sustainable Conservative fund invests mainly in cash and fixed-interest investment catered towards investors who want limited exposure to growth assets or for investors who want to achieve slightly higher returns. The Sustainable Conservative fund has had a 1-month and 1-year return of -1.23% and 0.88%, both far below the 5-year return of 3.20%. This means the fund is producing returns, but not at the expected performance level.
*The following is Sourced from Mercer Sustainable Conservative Fund Update
Returns
Fees
The total annual fees for investors in the Mercer Sustainable Conservative Fund are 0.52% per year until from 31 August 2020, the total fund charges reduced to 0.47%
Investment mix
The investment mix shows the type of assets that the fund invests into.
Top ten investments
This table shows Mercer’s top 10 investments in the Sustainable Conservative KiwiSaver Fund, which make up 11.89% of the fund.
Mercer Sustainable Plus Moderate Fund
Mercer Sustainable Plus Moderate fund invests mainly in cash and fixed-interest investment catered towards investors who want a third of investments exposure to growth assets or for investors who are comfortable with a higher degree of volatility. The sustainable plus moderate fund has had a 1-month and 1-year return of -1.33% and 2.67%, far below the 5-year return of 4.25%. This means the fund is producing returns, but not at the expected performance level.
*The following is Sourced from Mercer Sustainable Plus Moderate Fund Update
Returns
Fees
The total annual fees for investors in the Mercer Sustainable Plus Moderate Fund are 0.73% per year.
Investment mix
The investment mix shows the type of assets that the fund invests into.
Top ten investments
This table shows Mercer’s top 10 investments in the Sustainable Plus Moderate KiwiSaver Fund, which make up 10.67% of the fund.
*Other is an investment in a fund that is primarily comprised of listed infrastructure assets.
Mercer Sustainable Plus Balanced Fund
Mercer Sustainable Plus Balanced fund invests mainly in a wide range of assets catered towards investors who want a diversified investment with exposure to shares, real assets, fixed interest and cash. The sustainable plus balanced fund has had a 1-month and 1-year return of -1.83% and 4.52%, far below the 5-year return of 5.85%. This means the fund is producing returns, but not at the expected performance level.
*The following is Sourced from Mercer Sustainable Plus Balanced Fund Update
Returns
Fees
The total annual fees for investors in the Mercer Sustainable Plus Balanced Fund are 0.85% per year.
Investment mix
The investment mix shows the type of assets that the fund invests into.
Top ten investments
This table shows Mercer’s top 10 investments in the Sustainable Plus Balanced KiwiSaver Fund, which make up 11.25% of the fund.
** An investment in a fund that is primarily comprised of listed infrastructure assets. *** An investment in a fund that is primarily comprised of unlisted infrastructure assets.
Mercer Sustainable Plus Growth Fund
Mercer Sustainable Plus Growth fund invests mainly in growth assets catered towards investors who want a diversified investment with exposure to shares, real assets, fixed interest and cash. The sustainable plus growth fund has had a 1-month and 1-year return of -2.29% and 6.51%, far below the 5-year return of 7.30%. This means the funds are producing returns, but not at the expected performance level.
*The following is Sourced from Mercer Sustainable Plus Growth Fund Update
Returns
Fees
The total annual fees for investors in the Mercer Sustainable Plus Growth Fund are 0.96% per year.
Investment mix
The investment mix shows the type of assets that the fund invests into.
Top ten investments
This table shows Mercer’s top 10 investments in the Sustainable Plus Growth KiwiSaver Fund, which make up 12.96% of the fund.
** An investment in a fund that is primarily comprised of listed infrastructure assets. *** An investment in a fund that is primarily comprised of unlisted infrastructure assets.
Mercer Sustainable Plus High Growth Fund
Mercer Sustainable Plus High Growth fund invests mainly in growth assets catered towards investors who predominately want exposure to growth assets while comfortable with high volatility. The Sustainable Plus High Growth fund has had a 1-month and 1-year return of -2.57% and 7.79%, far below the 5-year return of 8.62%. This means the fund is producing returns, but not at the expected performance level.
*The following is Sourced from Mercer Sustainable Plus High Growth Fund Update
Returns
Fees
The total annual fees for investors in the Mercer Sustainable Plus Growth Fund are 1% per year.
Investment mix
The investment mix shows the type of assets that the fund invests into.
Top ten investments
This table shows Mercer’s top 10 investments in the Sustainable Plus Growth KiwiSaver Fund, which make up 15.24% of the fund.
** An investment in a fund that is primarily comprised of listed infrastructure assets.
Mercer Sustainable Plus Shares Fund
Mercer Sustainable Plus Shares fund invests entirely in the share market, suitable for those seeking exposure to a high level of volatility. The Sustainable Plus Shares fund has had a 1-month and 1-year return of -2.96% and 5.44%, far below the 5-year return of 9.40%. This means the fund is producing returns, but not at the expected performance level.
*The following is Sourced from Mercer Sustainable Plus Shares Fund Update
Returns
Fees
The total annual fees for investors in the Mercer Sustainable Plus Shares Fund are 0.93% per year.
Investment mix
The investment mix shows the type of assets that the fund invests into.
Top ten investments
This table shows Mercer’s top 10 investments in the Sustainable Plus Shares KiwiSaver Fund, which make up 18.36% of the fund.
Data for Mercer KiwiSaver funds have been sourced from Mercer KiwiSaver Funds. Past performance is not necessarily an indicator of future performance, and return periods may differ.
To see if Mercer has the appropriate fund that aligns with your values, retirement goals and situation, complete National Capital’s KiwiSaver Healthcheck.