The average annual return of your superannuation’s funds’ investments is one of the most important financial numbers in your life. Yet its importance is often downplayed or misunderstood by super fund members, with many not understanding the compounding effect that investment returns can play on their super balance over the years.

Even a slight variation in your superannuation fund’s long-term performance can significantly affect your super balance over the course of your career and, for better or worse, shape how you live in retirement.

The good news is that at your service is a global team of over 1,300 investment experts who seek out 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 and protect it where necessary.

These skilled investment managers also proactively look for opportunities within the changing landscape, to help deliver strong investment returns - ensuring that your money is given the best opportunity to grow. 

We are pleased to report that the Mercer Super Trust Corporate Superannuation Division is delivering well above average superannuation returns for members.

More than 87% cent of our SmartPath®, members continue to enjoy better than median returns over 1, 3, 5 and 7-year timeframes¹. 

Just one example of our strong returns is our performance in the 2020-21 financial year. The median return across super funds of all default (MySuper) investment options was 17.9%. By comparison, our MySuper investment option, Mercer SmartPath®, generated returns of approximately 22% for the majority of our members – a considerable outperformance compared with other super funds.²

Other good news has emerged with regard to the Australian Government’s Your Future, Your Super reforms, which came into effect on July 1, 2021. Under the changes, the Australian Prudential Regulatory Authority must conduct an annual performance test for MySuper products in a move that is intended to hold super funds to account for underperformance through greater transparency and increased consequences. Mercer Super successfully passed the Your Future Your Super test, which focused on the 7-year performance of funds to June 30, 2021.

Of course, it’s important to note that past performance is not an indicator of future performance. What strong long-term investment returns may reflect, however, is a superannuation fund’s experience and commitment to great financial outcomes for its members.

Tracking the performance of your super fund can help you understand how your portfolio is gaining or losing value. Most funds also provide monthly, quarterly and annual reports that outline investment returns.

You may also like to compare the superannuation performance of different funds to help determine which one is right for you.

When assessing superannuation funds’ performance, you should make sure you’re comparing like for like funds in order to make a fair judgment. That means comparing super funds of the same type, as well as those that have a similar risk profile.

One number to check in relation to your super is your account’s net benefit - the investment return you get after administration fees, investment fees, insurance premiums and taxes are removed. This is often the figure that goes towards the account balance that you see.

On the contrary, it’s important to note that superannuation is a long-term investment and it’s the returns that you get over a period of years and decades that really count.

If you are considering changing super funds, we recommend that you speak with a licensed financial adviser who can take your personal circumstances and financial goals into consideration. 

^{1 Measured by the median of all default funds as reported in the SuperRatings Fund Crediting Rate Survey September 2021 - Default Options.}

^{2. The SmartPath born 1974-1978 cohort (being representative of over 75% of our members) is performing in the top quartile of the SuperRatings Fund Crediting Rate Survey September 2021 - Default Options over 1, 3, 5 and 7 years.}

Disclaimer

^{This document has been prepared and sent on behalf of Mercer Superannuation (Australia) Limited (‘Mercer Super’), ABN 79 004 717 533, Australian Financial Services Licence #235906, the trustee of the Mercer Super Trust ABN 19 905 422 981. Any advice contained in this document is of a general nature only, and does not take into account the personal needs and circumstances of any particular individual. Prior to acting on any information contained in this document, you need to take into account your own financial circumstances. Please consider the Product Disclosure Statement, Product Guide, Insurance Guide, and Financial Services Guide before making a decision about the product, or seek professional advice from a licensed, or appropriately authorised financial adviser if you are unsure of what action to take. 'MERCER' is a registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 315 917. Copyright 2022 Mercer LLC. All rights reserved.}