Investment update: July to September 2021

Mercer Super members enjoyed a modest positive result for the September quarter.

How your super is performing

SmartPath® investment options

Default (MySuper) options delivered a median return of 1.47% and most SmartPath members benefited from better than average results for the quarter, with returns ranging from 1.6-2.2%.

Mercer SmartPath® successfully passed the Your Future Your Super (YFYS) Performance Test, which focused on the 7-year performance to 30-June-2021. More than 87% of members continue to enjoy better than median returns over 1, 3, 5 and 7-year time frames*. 

Ready-made investment options

Mercer diversified options also delivered positive results for the quarter, ranging from 1.0-2.2%, while Mercer Sustainable Plus options delivered better than average returns of 1.3-2.6%.

Investment Market Update

Following strong gains over the past year, and after reaching historic highs in August, global markets fell 3.7% in September. 

A growing list of challenges emerged throughout the month, including the Chinese property sector. Evergrande, one of the largest property developers in China, failed to meet interest rate payments, drawing comparisons to the collapse of Lehman Brothers at the beginning of the 2008 global financial crisis. 

A slowing in the global economic recovery, ongoing supply chain disruptions, and an energy squeeze raised concerns of rising inflation and higher interest rates. That led to a sell-off in all major assets classes in September.

Australian shares were positive over the quarter as the S&P/ASX 300 Index returned 1.8% for the period, despite widespread lockdowns. The best performing sectors were Energy (8.0%) and Industrials (6.3%), while the weakest performing sectors were Materials (-9.6%) and Consumer Discretionary (2.3%). 

Australian economy

Australia’s economy is expected to have shrunk to approximately 3% in the September quarter as the global pandemic forced nearly two-thirds of the population into lockdown. However, high vaccination rates and progressive easing of restrictions are expected to encourage economic recovery towards the end of year, and into 2022.

Our medium term outlook for the global economy and markets remain positive, although uncertainty remains due to the sharp increase in energy prices, and concerns surrounding inflation.

Our global team of 1,300 investment professionals seek out the best investment opportunities in Australia and around the world to help grow your super.  They monitor investment markets on a daily basis, continuously working for you behind the scenes to ensure you stay on track for your retirement.

*Measured by the median of all default funds as reported in the SuperRatings Fund Crediting Rate Survey September 2021 Default Options .

This information is of general nature only and does not take into account your personal financial situation, needs or objectives. As we don't know your financial needs we can't advise if Mercer Super will suit you. Please consider the Product Disclosure Statement, Product Guide, Insurance Guide, and Financial Services Guide before making a decision about the product.