Using the most recent returns and fund update reports from March 2022, we will examine Mercer’s recent KiwiSaver Performance.
Mercer has been helping Kiwis manage their retirement savings for more than 60 years, currently having seven KiwiSaver funds under management. They adopt a responsible investment policy that includes investing in sustainable companies and excluding companies involved in the manufacture and/or production of tobacco and controversial weapons across all their funds.
In March 2022, there was a ‘lift-off’ as the Federal Reserve (the Fed) raised the federal funds rate, which is the target rate that banks pay to borrow from each other on an overnight basis. This is designed to take money out of the financial system to cool inflation, representing the start of quantitative tightening.
Table of Contents
Performance of Mercer KiwiSaver Funds
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 be the only provider awarded a Platinum rating for seven years running for delivering value for money by SuperRatings.
Performance of Mercer KiwiSaver Funds
|
1 month |
3 months |
1 year |
5 years |
|
|
Cash |
0.07% |
0.14% |
0.26% |
0.90% |
|
Sustainable Conservative |
-0.47% |
-3.41% |
-0.44% |
2.98% |
|
Sustainable Plus Moderate |
0.07% |
-3.74% |
1.24% |
4.10% |
|
Sustainable Plus Balanced |
0.38% |
-4.89% |
2.54% |
5.69% |
|
Sustainable Plus Growth |
0.76% |
-5.91% |
4.04% |
7.13% |
|
Sustainable Plus High Growth |
0.96% |
-6.83% |
4.83% |
8.42% |
|
Sustainable Plus Shares |
0.80% |
-8.49% |
1.97% |
9.02% |
Sourced from Mercer fund performance report
*These returns are to 31 March 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 3 May 2022.
Mercer Cash Fund
The Cash Fund invests primarily in cash and short term interest bearing investments. This fund may be suitable for investors who want no exposure to growth assets or where the funds may be required in the shorter term. The Cash Fund has had a 1-year return of 0.26% and 5-years return of 0.90%.
*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. The administration fee has been removed from 31 March 2022.
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 37.61% of the fund.
Mercer Sustainable Conservative Fund
The Sustainable Conservative Fund invest mostly in cash and fixed interest, with only limited exposure to growth assets like shares. This fund may be suitable for investors who want to achieve slightly higher returns than those expected from investing solely in cash. The Conservative Fund has had 1-year return of -0.44% and 5-years return of 2.98%.
*The following is Sourced from Mercer Sustainable Conservative Fund Update
Returns
Fees
The total annual fees for investors in the Mercer Conservative Fund are 0.52% per year.The administration fee has been removed from 31 March 2022.
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 Conservative KiwiSaver Fund, which make up 14.51% of the fund.
Mercer Sustainable Plus Moderate Fund
The Sustainable Plus Moderate Fund invests in cash and fixed interest, with about a third of investments being in growth assets like shares and real assets. This fund may be suitable for investors who want to invest in a fund with a broad mix of assets and who are comfortable with higher volatility than can be expected from the Sustainable Conservative Fund. The Moderate Fund has had 1-year return of 1.24% and 5-years return of 4.10%.
*The following is Sourced from Mercer Moderate Fund Update
Returns
Fees
The total annual fees for investors in the Mercer Moderate Fund are 0.73% per year. The administration fee has been removed from 31 March 2022.
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 Moderate KiwiSaver Fund, which make up 12.41% of the fund.
Mercer Sustainable Plus Balanced Fund
The Sustainable Plus Balanced Fund invests in a broad range of assets and may be suitable for investors who want a diversified investment with exposure to both income and growth assets. This fund can be expected to have a higher volatility than that of the Sustainable Plus Moderate Fund and is more suitable for investors who can invest for the long term. The Balanced Fund has had 1-year return of 2.54% and 5-years return of 5.69%.
*The following is Sourced from Mercer Sustainable Plus Balanced Fund Update
Returns
Fees
The total annual fees for investors in the Mercer Balanced Fund are 0.85% per year. The administration fee has been removed from 31 March 2022.
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 Balanced KiwiSaver Fund, which make up 13.14% of the fund.
Mercer Sustainable Plus Growth Fund
The Sustainable Plus Growth Fund invests primarily in growth assets like shares and real assets, with only a limited exposure to cash and fixed interest. This fund may be suitable for investors who want to invest mostly in growth assets who are comfortable with higher volatility than that of the Sustainable Plus Balanced fund to achieve higher longer-term returns. The Growth Fund has had 1-year return of 4.04% and 5-years return of 7.13%.
*The following is Sourced from Mercer Sustainable Plus Growth Fund Update
Returns
Fees
The total annual fees for investors in the Mercer Growth Fund are 0.96% per year. The administration fee has been removed from 31 March 2022.
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 Growth KiwiSaver Fund, which make up 15.63% of the fund.
Mercer Sustainable Plus High Growth Fund
The Sustainable Plus High Growth Fund invests almost entirely in growth assets like shares and real assets, with only a small exposure to cash and fixed interest. This fund may be suitable for investors who want to invest predominantly in growth assets, who want higher long-term returns and are comfortable with high volatility. The High Growth Fund has had 1-year return of 4.83% and 5-years return of 8.42%.
*The following is Sourced from Mercer Sustainable Plus High Growth Fund Update
Returns
Fees
The total annual fees for investors in the Mercer High Growth Fund are 1.00% per year. The administration fee has been removed from 31 March 2022.
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 High Growth KiwiSaver Fund, which make up 18.12% of the fund.
Mercer Sustainable Plus Shares Fund
The Sustainable Plus Shares Fund invests almost entirely in the share market. This fund may be suitable for investors seeking exposure mainly to shares and who are comfortable with high volatility. The Shares Fund has had 1-year return of 1.97% and 5-years return of 9.02%.
*The following is Sourced from Mercer Sustainable Plus Shares Fund Update
Returns
Fees
The total annual fees for investors in the Mercer Shares Fund are 0.93% per year. The administration fee has been removed from 31 March 2022.
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 Shares KiwiSaver Fund, which make up 19.43% of the fund.
Data for Mercer KiwiSaver funds has been sourced from Mercer KiwiSaver Funds. Past performance is not necessarily an indicator of future p erformance, 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.