Mercer SmartPath Asset Allocation

Mercer SmartPath Asset Allocation

Mercer SmartPath®

Mercer SmartPath® Asset Allocation

A summary of the asset allocations that power Mercer SmartPath. The benchmark asset allocation for each Fund is shown in the table below as at 1 January 2014 and effective 1 January 2016.

Changes from 2014 to 2016 are shown in bold font.

MERCER SMARTPATH FUND

1989 –
1993

1984 – 1988

1979 – 1983

1974 –1978

1969 – 1973

1964 – 1968

1959 – 1963

1954 – 1958

1949 – 1953

1944 –1948

Growth %
1 Jan 2014

85%

85%

85%

85%

85%

85%

75%

65%

55%

45%

Growth %
1 Jan 2016

85%

85%

85%

85%

85%

81%

71%

61%

51%

45%

Asset allocation % as at 1 January 2014

Australian shares

35.0

35.0

35.0

35.0

35.0

35.0

29.0

25.0

21.0

18.0

International shares

35.0

35.0

35.0

35.0

35.0

35.0

30.0

25.0

20.0

14.0

Property and infrastructure

12.0

12.0

12.0

12.0

12.0

12.0

12.0

11.0

10.0

9.0

Alternative assets

4.0

4.0

4.0

4.0

4.0

4.0

5.0

5.0

5.0

5.0

Higher yielding fixed interest

6.0

6.0

6.0

6.0

6.0

6.0

6.0

5.0

5.0

5.0

Defensive fixed interest and cash

8.0

8.0

8.0

8.0

8.0

8.0

18.0

29.0

39.0

49.0

Asset allocation % effective 1 January 2016

Australian shares

35.0

35.0

35.0

35.0

35.0

32.5

27.5

23.5

20.0

18.0

International shares

35.0

35.0

35.0

35.0

35.0

33.0

28.0

23.0

17.5

14.0

Property and infrastructure

12.0

12.0

12.0

12.0

12.0

12.0

11.5

10.5

9.5

9.0

Alternative assets

4.0

4.0

4.0

4.0

4.0

4.5

5.0

5.0

5.0

5.0

Higher yielding fixed interest

6.0

6.0

6.0

6.0

6.0

6.0

5.5

5.0

5.0

5.0

Defensive fixed interest and cash

8.0

8.0

8.0

8.0

8.0

12.0

22.5

33.0

43.0

49.0

While we intend that the asset allocation of the Funds will move along the glidepath (from growth to defensive-oriented), a key benefit of the Mercer SmartPath Funds is the flexibility to adjust the asset allocation within stated ranges to take into account market opportunities and mispricings for the benefit of investors. See the Product Disclosure Statement for full details.