Mercer SmartPath® helps your members achieve an adequate and sustainable income throughout their retirement;
• Enhancing their exposure to growth assets while they’re young.
• Providing greater confidence that their super will be protected.
• Setting them on a path of sustainable income in retirement.
Mercer SmartPath is an innovative approach to delivering retirement incomes – one that recognises that superannuation isn’t just there to create wealth, but to deliver an adequate and sustainable income throughout each member’s retirement.
Who Can Benefit From Mercer SmartPath®?
• Super fund trustees and wealth managers who want a state-of-the-art super option to offer to their members or clients.
• Chief Investment Officers and others responsible for the investment of super fund assets, who can leverage the scale and resources of Mercer via Mercer SmartPath™ to achieve their own investment objectives.
• HR and/or superannuation managers tasked with finding a more efficient way to deliver state-of-the-art, quality superannuation benefits to employees, particularly in the wake of the Stronger Super reforms.
Mercer SmartPath is an innovative approach to delivering retirement incomes – one that recognises that superannuation isn’t just there to create wealth, but to deliver an adequate and sustainable income throughout each members’ retirement.
We’ve designed Mercer SmartPath to meet members’ needs as they age. Members are placed in a fund based on their date of birth. The funds are grouped into five-year age bands. Younger members commencing their retirement savings journey will start with an allocation of 85% growth assets. As they get older, they will automatically and gradually ‘glide’ from a growth-oriented investment strategy to a defensive-oriented strategy. Mercer closely manages the investment strategy for each age band, having careful consideration of likely risk tolerance, liquidity needs, opportunities for tax efficiency and income requirements.
The Mercer SmartPath funds combine Mercer’s best ideas across all aspects of investment strategy design and implementation. The Mercer SmartPath glidepath, shown below, works not just to but through retirement to help members achieve adequate and sustainable incomes throughout their whole life.
One way that Mercer SmartPath achieves operational efficiency is through its investment fee structure. Investment fees are established for each age-based fund depending on the exposure to growth and defensive assets. Because they are actively managed, the funds with a higher allocation to growth assets have a higher fee than the funds with a smaller proportion allocated to growth assets. As changes to the fees will be linked to changes in the proportion of growth assets, there is no subsidisation between members of different ages. It’s a much fairer approach for everyone.
ASIC Class Order 14/1252 (as amended by the ASIC Corporations (Amendment) Instrument 2016/1224 and the ASIC Corporations (Amendment and Repeal) Instrument 2015/876) applies to the Product Disclosure Statement dated 1 July 2017 for the Mercer SmartPath Funds.
Mercer Multi-Manager Funds Contact
Phone: 1300 728 928
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