Mercer Australian Shrs for Tax Exmpt Inv Performance Review | News

What is the Mercer Australian Shrs for Tax Exmpt Inv fund?

Mercer Australian Shares for Tax Exempt Investors provides exposure to Australian shares utilising an actively managed, multi-manager approach. The Fund’s investment managers utilise tax effective strategies in their investment decision making process. It aims to exceed the benchmark by 1.5 to 2.5% per annum, before management costs, over the medium to long term.

Designed for investors who are tax exempt and can reclaim franking credits.
Diversification is achieved at the manager, sector and stock levels, with a focus on operational efficiency and sustainability.
Uses &P/ASX 300 Accumulation index grossed up for franking credit as the benchmark.
Suitable for investor planing to invest for 10 years or more.

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Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Latest News & Updates For Mercer Australian Shrs for Tax Exmpt Inv

Mercer Australian Shrs for Tax Exmpt Inv Fund Commentary December 31, 2023

The fund underperformed the benchmark over the quarter by 0.5% as both stock selection and asset allocation equally detracted. Overweight positions in Virgin Money and Origin Energy alongside an underweight to Pilbara Minerals contributed to performance. This was more than offset by underweights to Fortescue Metals and CBA, and an overweight to ResMed. From an asset allocation perspective, an underweight to IT and communication services sectors contributed to performance, while underweights to materials and health care detracted.

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Product Snapshot

Product Overview
Performance Review
Peer Comparison
Product Details

Product Overview

Fund Name	APIR Code ? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.	Structure ?	Asset Class ? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.	Asset Category ? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.	Peer Benchmark Name ? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.	Broad Market Index ? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.	FUM ? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.	Management Fee ? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.	Performance Fee ? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.	Spread ? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
Mercer Australian Shrs for Tax Exmpt Inv	MIN0087AU	Managed Funds	Domestic Equity	Australia Other	Domestic Equity - Other Index	ASX Index 200 Index	501.64 M	1.05%	0.00%	0.34%

Performance Review

Fund Name	Last Month ? Returns after fees in the most recent (last) month).	3 Months Return ? Returns after fees in the most recent 3 months.	1 Year Return ? Trailing 12 month returns.	3 Years Average Return ? Average Annual returns from the last 3 years.	Since Inc. Average Return ? Average (annualised) returns since inception	1 Year Std. Dev. (Annual) ? The standard deviation (or annual volatility) of the last 12 months.	3 Years Std. Dev. (Annual) ? The average standard deviation (or annual volatility) from the last 3 years.	Since Inc. Std. Dev. (Annual) ? The average standard deviation (or annual volatility) since the fund inception.	1 Year Max Drawdown ? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.	3 Year Max Drawdown ? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.	Since Inc. Max Drawdown ? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Mercer Australian Shrs for Tax Exmpt Inv	3.22%	7.55%	19.67%	7.73%	8.8%	10.83%	13.07%	13.21%	-5.17%	-12.33%	-26.05%

Peer Comparison

Fund Name	Peer Index Name ? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.	12 Months Excess Return ? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.	Excess Return Annualised Since Inception ? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.	12 Months Alpha ? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.	Alpha Annualised Since Inception ? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.	12 Months Beta ? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).	Beta Annualised Since Inception ? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).	12 Months Tracking Error ? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.	Tracking Error Since Inception ? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.	12 Months Correlation ? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.	Correlation Since Inception ? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Mercer Australian Shrs for Tax Exmpt Inv	Domestic Equity - Other Index	7.14%	2.12%	NA%	NA%	NA%	1.69	5.05%	4.15%	0.98	0.98

Product Details

Fund Name	Verifed by SMSF Mates	Manager Address	Phone	Website	Email
Mercer Australian Shrs for Tax Exmpt Inv	Yes		-	https://www.mercer.com.au/	-

Product Due Diligence

What is Mercer Australian Shrs for Tax Exmpt Inv

Mercer Australian Shrs for Tax Exmpt Inv is an Managed Funds investment product that is benchmarked against ASX Index 200 Index and sits inside the Domestic Equity - Other Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Mercer Australian Shrs for Tax Exmpt Inv has Assets Under Management of 501.64 M with a management fee of 1.05%, a performance fee of 0.00% and a buy/sell spread fee of 0.34%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Mercer Australian Shrs for Tax Exmpt Inv has returned 3.22% in the last month. The previous three years have returned 7.73% annualised and 13.21% each year since inception, which is when the Mercer Australian Shrs for Tax Exmpt Inv first started.

How is risk measured in this investment product?

There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Mercer Australian Shrs for Tax Exmpt Inv first started, the Sharpe ratio is NA with an annualised volatility of 13.21%. The maximum drawdown of the investment product in the last 12 months is -5.17% and -26.05% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.

What is the relative performance of the investment product?

Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Mercer Australian Shrs for Tax Exmpt Inv has a 12-month excess return when compared to the Domestic Equity - Other Index of 7.14% and 2.12% since inception.

Does the investment product produce Alpha over its Peers?

Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Mercer Australian Shrs for Tax Exmpt Inv has produced Alpha over the Domestic Equity - Other Index of NA% in the last 12 months and NA% since inception.

What are similar investment products?

For a full list of investment products in the Domestic Equity - Other Index category, you can click here for the Peer Investment Report.

What level of diversification will Mercer Australian Shrs for Tax Exmpt Inv provide?

Mercer Australian Shrs for Tax Exmpt Inv has a correlation coefficient of 0.98 and a beta of 1.69 when compared to the Domestic Equity - Other Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.

How do I compare the investment product with its peers?

For a full quantitative report on Mercer Australian Shrs for Tax Exmpt Inv and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Mercer Australian Shrs for Tax Exmpt Inv with the ASX Index 200 Index?

For a full quantitative report on Mercer Australian Shrs for Tax Exmpt Inv compared to the ASX Index 200 Index, you can click here.

Can I sort and compare the Mercer Australian Shrs for Tax Exmpt Inv to do my own analysis?

To sort and compare the Mercer Australian Shrs for Tax Exmpt Inv financial metrics, please refer to the table above.

Has the Mercer Australian Shrs for Tax Exmpt Inv been independently verified by SMSF Mate?

This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.

How can I invest in Mercer Australian Shrs for Tax Exmpt Inv?

If you or your self managed super fund would like to invest in the Mercer Australian Shrs for Tax Exmpt Inv please contact via phone or via email .

How do I get in contact with the Mercer Australian Shrs for Tax Exmpt Inv?

If you would like to get in contact with the Mercer Australian Shrs for Tax Exmpt Inv manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Mercer Australian Shrs for Tax Exmpt Inv. All data and commentary for this fund is provided free of charge for our readers general information.

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Historical Performance Commentary

Performance Commentary - June 30, 2023

Australian equities were positive over Q2 2023 as the S&P/ASX 300 Accumulation Index Gross of Franking Credits returned 1.17% for the period.

Best performing sectors were Information Technology and Utilities, while weakest sectors were Healthcare and Materials. The largest positive contributors to index returns were Xero, James Hardie and Woodside. On the other hand, significant detractors were BHP, CSL and NAB.

Performance Commentary - March 31, 2023

Risk asset returns were mixed over March, whilst defensive assets delivered gains as markets digested financial sector developments in the US and Europe.

Financial distress at a California-based regional bank culminated in the second biggest US bank failure in history. Two other regional banks also went into administration. Outside the US, investors digested UBS’s takeover of Credit Suisse and subsequent turmoil in bond markets. Swiss authorities let Credit Suisse’s riskiest bonds be wiped out, while equity holders received a small amount of equity in UBS as part of the transaction. While these issues were seen as idiosyncratic and largely driven by poor management of individual banks, there is a

pattern of weaker businesses struggling amid high interest rates and declining market liquidity. Employment and activity data continued to be resilient in the US with signs of recovery emerging from the UK and Europe. Inflation in the US continued to trend down. However, inflation fell by less than expected in the Eurozone and rose in the UK. Central banks consequently hiked rates by 25 bps in the US / Eurozone and 50 bps in the UK.

Over March, Hedged Developed Markets Overseas Shares returned 2.5%, most sectors posted positive returns, although financials sold off strongly amid the banking turmoil. Cyclical areas of the market such as small-caps and energy also struggled.

Performance Commentary - September 30, 2022

Australian equities were positive over the quarter as the S&P/ASX 300 Accumulation Index Gross of Franking Credits returned 1.15% for the period.

The best performing sectors were Energy and Healthcare, while the weakest performing sectors were Utilities and Real Estate. The largest positive contributors to the return of the index were Pilbara Minerals, CSL and Whitehaven Coal. On the other hand, the most significant detractors from performance were BHP, Transurban and Macquarie Group.

Performance Commentary - June 30, 2022

The fund performed in line with the benchmark over the quarter. Stock selection detracted from performance, while asset allocation had a positive contribution. An underweight to Transurban alongside overweight positions in OZ Minerals and SEEK were key drivers of underperformance, yet were slightly offset by value added by overweight positions in QBE and Santos. From an asset allocation perspective, overweight exposure to energy and an underweight to real estate contributed to performance, while an overweight to information technology and an underweight to utilities detracted.

Performance Commentary - March 31, 2022

During the quarter asset allocation drove outperformance, whilst security selection was neutral. An overweight allocation to energy and underweight allocation to information technology were key drivers of outperformance while an overweight exposure to consumer discretionary detracted. From a stock selection perspective, an overweight to Santos and underweight allocations to Afterpay and CSL drove performance. Overweight allocations to Aristocrat Leisure and James Hardie detracted.

Performance Commentary - June 30, 2021

Australian equities were positive over Q2 2021 as the S&P/ ASX 300 index Gross of Franking Credits returned 8.7% for the period. The best performing sectors were IT and Consumer Discretionary, while the weakest performing sectors were Utilities and Energy. The largest positives contributors to the return of the index were CBA, Aristocrat Leisure, and Fortescue. On the other hand, the most significant detractors from performance were Woolworths, ANZ and NAB

Absolute fund performance was strong over the quarter (+9.3%). Outperforming the S7P ASX small Ordinaries index by 0,8%. Stock selection and sector positioning added value over the quarter. At the sector level overweight allocations to the industrial and consumer discretionary sectors, ands and underweight allocations to consumer staples contributed strongly to the outperformance

The broad MSCI World Australia (NR) Increased 7.6% in hedged terms and increased 9.3% in unhedged terms over the quarter, as the AUD achieved negative returns against major currencies over the period. Other global shares were also positive as the MSCI Small Caps (TR ) Index and the MSCI Emerging Markets (NR ) Index both returned 6,6 % over the quarter all in AUD terms

Over the June quarter, The NASDAQ increased 9.5%. The S&P 500 Composite Index Increased 9.5% The S&P 500 composite Index increased 8.5% and the Dow Jones Industrial Average Increased 5.1% all in USD terms.

Performance Commentary - December 31, 2020

During the quarter stock selection contributed towards positive performance, whilst asset allocation detracted. Underweight allocations to healthcare and utilities drove outperformance over the quarter, with an underweight positioning in information technology detracting from overall performance. Stock selection, through an overweight holding in ANZ Banking Group and ResMed Inc. were the key drivers of performance, however underweight holdings in Commonwealth Bank of Australia and Afterpay Limited did detract from outperformance over the quarter.

Mercer Australian Shrs for Tax Exmpt Inv (MIN0087AU) Report & Performance