Mercy Super - Always for you

Crediting Rates

Final Crediting Rates

From 1 July 2010 - 30 June 2011

	Superannuation	Income Streams
Balanced Growth	8.50%*	9.40% *
Balanced	7.80% *	8.20% *
Shares	10.00% *	10.80% *
Cash	5.20% *	6.10% *
Socially Responsible	8.30% *	8.80% *

* The above crediting rates are the Final crediting rates to 30 June 2011. Please note - in the event that the earnings on the website differ from those on the Fund's administration system, the earnings on the administration system will apply.

 

Investment Performance compared with objectives

 

The Trustee has in conjunction with its investment adviser, Frontier Investment Consulting, set inflation linked objectives for each Investment Option.  These objectives, or goals, are outlined below together with the corresponding return for that option. 

 

While at face value the returns for most Options look disappointing when compared with the corresponding inflation related objective, it is important to highlight that these figures include one of the most volatile investment periods in memory.  Although returns for the last financial year were consistent with long-term expectations, recent volatility highlights that a full global economic and financial recovery is likely to still be some time away.

 

The long term returns for Mercy Super's options remain competitive with other funds when compared using the appropriate SuperRatings survey.

 

As superannuation investing is a long term activity for most of us, the Trustee has deliberately set goals that are expected to be realistic and achievable over time.  Some objectives are worded to include a probability, or likelihood, to reflect that it may not be possible to achieve that target for every five year period.

 

Giving you flexibility

You can now switch your investment option on a weekly basis at no cost. If your completed Change of Member Investment Choice form is received by close of business Wednesday, your switch will be effective from the following Monday.

 

If you are intending to review or change your investment Option, it is highly recommended that you take a few minutes to read the applicable sections of your Member Booklet  and latest Annual Report.

 

Investment Option	Objective	Five Years to 30 June 2011
		Objective	Return
Balanced Growth	75% minimum probability of a crediting rate equal to inflation plus 3% p.a. over rolling five year periods	5.9% p.a. (CPI of 2.9% plus 3% p.a.)	2.9% p.a.
Balanced	85% minimum probability of a crediting rate equal to inflation plus 2% p.a. over rolling five year periods	4.9% p.a. (CPI of 2.9% plus 2% p.a.)	4.0% p.a.
Cash	Similar to those available from short-term cash investments with minimal risk of capital loss.	4.4% p.a.	4.9% p.a.
Shares	55% minimum probability of a crediting rate equal to inflation plus 5% p.a. over rolling five year periods	7.9% p.a. (CPI of 2.9% plus 5% p.a.)	2.4% p.a.
Socially Responsible	A total return after costs and before tax which is higher than the return from the benchmark of the underlying fund over rolling five year periods	2.2% p.a. (see note 3)	3.0% p.a. (see note 3)

Notes

1. The above returns relate to Mercy Super's superannuation categories.
2. Inflation is measured by the Consumer Price Index.
3. The Socially Responsible Option is fully invested in the AMP Capital Investors Responsible Leaders Balanced Fund.  As Mercy Super has only offered this Option since December 2007, the above return and objective figures relate to the underlying AMP fund.

Final Crediting Rates - Historical

Final Crediting Rates

Balanced Growth (Fund's Default Option)

Financial Year	Superannuation	Income Stream
2010/2011	8.50%	9.40%
2009/2010	10.25%	11.60%
2008/2009	-13.50%	-15.50%
2007/2008	-4.90%	-6.90%
2006/2007	17.00%	19.30%
Five Year Average	2.90%	2.80%
10 Year Average	5.50%	N/A
15 Year Average	7.40%	N/A

Balanced

Financial Year	Superannuation	Income Stream
2010/2011	7.80%	8.20%
2009/2010	9.40%	10.50%
2008/2009	-8.10%	-9.60%
2007/2008	-0.10%	-0.70%
2006/2007	12.30%	14.00%
Five Year Average	4.00%	4.10%

Please note: The Balanced option was introduced in July 2003 so a 10 year and 15 year average figure is not available. 

 

Shares

Financial Year	Superannuation	Income Stream
2010/2011	10.00%	10.80%
2009/2010	12.10%	13.00%
2008/2009	-14.60%	-18.00%
2007/2008	-13.10%	-16.60%
2006/2007	22.80%	25.80%
Five Year Average	2.40%	1.50%

Please note: The Shares option was introduced in July 2003 so a 10 year and 15 year average figure is not available.

 

Cash

Financial Year	Superannuation	Income Stream
2010/2011	5.20%	6.10%
2009/2010	5.10%	5.80%
2008/2009	4.10%	4.80%
2007/2008	4.70%	5.50%
2006/2007	5.60%	6.60%
Five Year Average	4.90%	5.80%

Please note: The Cash option was introduced in July 2003 so a 10 year and 15 year average figure is not available.

 

Socially Responsible

Financial Year	Superannuation	Income Stream
2010/2011	8.30%	8.80%
2009/2010	9.30%	9.30%
2008/2009	-9.40%	-11.50%
1 Dec 2007 - 30 Jun 2008	-20.30%	-24.70%
Five Year Average	N/A	N/A

Please note: The Socially Responsible option was introduced in December 2007 so a 5 year, 10 year and 15 year average figure is not available.