June, 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.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Mercer-Funds-Q2-JUN-2023.pdfMarch, 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.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Mercer-Funds-Monthly-Report-MAR-2023.pdfDecember, 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.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Mercer-Funds-Q4-DEC-2022-V2-1-1.pdfSeptember, 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.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Mercer-Funds-Q3-SEP-2022-4.pdfJune, 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.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Mercer-Funds-Q2-Jun-2022-1.pdfMarch, 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.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Mercer-Funds-Q1-Mar-2022.pdfJune, 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.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/Mercer-Funds-quarterly-report-Q2-2021-1.pdfDecember, 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.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/MMF-quarterly-report_Q3-2020.pdfSeptember, 2020
Over the quarter, asset allocation and stock selection contributed positively to performance. Consumer Discretionary (OW), Financials (UW) and Materials (OW) were all positive from an asset allocation perspective. Cash holding, IT (UW) and Real Estate (UW) detracted from performance. At a stock selection level positive contributions came from Charter Hall (OW), OZ Minerals (OW), A2 Milk (UW) and Westpac Banking Corp (UW) while AfterPay (UW) and Telstra Corp (OW) were the key detractors.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/MMF-quarterly-report_Q3-2020.pdfticker: MIN0087AU
commentary_block: Array
factsheet_url:
https://www.multimanager.mercer.com.au/fund-facts/single-sector-funds.html
Go to quarterly reports, then Manager Performance
release_schedule: Quarterly
fund_features:
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.
manager_contact_details: Array
asset_class: Domestic Equity
asset_category: Australia Other
peer_benchmark: Domestic Equity - Other Index
broad_market_index: ASX Index 200 Index
structure: Managed Fund