Our Master Trust’s default savings phase fund – the Mercer Growth Fund – has played an important role in growing members’ savings in real terms, with the aim that they can enjoy an adequate and sustainable income in retirement.
We are often asked about the performance of our Mercer Growth Fund, which launched in August 2011, against its objectives of achieving long term growth and delivering lower volatility than a pure equity market portfolio. To help demonstrate this we also put this performance in the context of a member’s overall outcome based savings goal – the aim being that member’s pension pots grow in excess of an inflation outcome based hurdle to build their pension pots in real terms.
12 Month Performance Periods to 30 June 2021
30/06/2016 to 30/06/2017 |
30/06/2017 to 30/06/2018 |
30/06/2018 to 30/06/2019 |
30/06/2019 to 30/06/2020 |
30/06/2020 to 30/06/2021 |
|
| Mercer Growth Fund | 17.5 | 6.9 | 6.7 | -1.7 | 19.7 |
| Target Benchmark | 4.3 | 4.4 | 4.8 | 4.6 | 4.0 |
| Outcome Based Hurdle (Inflation + 3% p.a.) |
5.6 | 5.4 | 5.0 | 3.6 | 5.5 |
Source: Mercer, Financial Express and Thomson Reuters Datastream.
Figures shown are net of all investment fees, but exclude administration costs which are specific to each participating employer.
Inception date taken as 22 August 2011.
Performance Periods to 30 June 2021
| 1 Year (%) |
3 Years (% p.a.) |
5 Years (% p.a.) |
Since Inception (% p.a.) |
|
|---|---|---|---|---|
| Mercer Growth Fund |
19.7 | 7.9 | 9.5 | 10.0 |
| Target Benchmark | 4.0 | 4.5 | 4.4 | 4.4 |
| Outcome Based Hurdle (Inflation + 3% p.a.) |
5.5 | 4.7 | 5.0 |
4.8 |
Source: Mercer, Financial Express and Thomson Reuters Datastream.
Figures shown are net of all investment fees, but exclude administration costs which are specific to each participating employer.
Inception date taken as 22 August 2011.
When saving for an adequate and sustainable income in retirement, the risk of the investment strategy is equally as important as the return generated. The analysis shown below for the Mercer Growth Fund details the Fund’s performance over a range of metrics against a global equity index for comparison:
Risk Measures to 30 June 2021
| MERCER GROWTH | EQUITY | |
| Since Inception Volatility (%p.a.) | 10.1 | 14.9 |
| Max 1 Day Loss (%) | -6.2 | -8.6 |
| Max Peak to Trough (%) | -24.6 | -26.1 |
Source: Mercer, Financial Express and Thomson Reuters Datastream.
Figures shown are net of all investment fees, but exclude administration costs which are specific to each participating employer.
Equity benchmark taken as MSCI World Index, sourced from Thomson Reuters Datastream.
Inception date taken as 22 August 2011.
Our Master Trust aims to provide strong risk adjusted returns for default members in order to deliver an adequate and sustainable income in retirement. The investment design builds on our core investment beliefs which are summarised below:
1. Risk Management
2. Active Management
3. Dynamic Management
4. Operational Efficiency
5. Sustainability
If you would like to know more about how the Mercer Master Trust can help you and your members save for an adequate and sustainable retirement or if you would like to know more about the Mercer Growth Fund, how it is structured and managed, then please contact us to find out more.
Important Notices
© 2021 Mercer Limited. All rights reserved
Mercer Limited is authorised and regulated by the Financial Conduct Authority. Registered in England No. 984275. Registered Office: 1 Tower Place West, Tower Place, London, EC3R 5BU.
This guide is for information only and is not personal financial advice. If you require financial advice you should seek this from an authorised financial adviser.
The value of investments can go down as well as up, so you could get back less than you invest. Past Performance is not a reliable indicator of future results.
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