Mercer awarded top-tier status in latest KiwiSaver ratings

Mercer awarded top-tier status in latest KiwiSaver ratings

New Zealand, 6 November 2018 - KiwiSaver provider Mercer New Zealand has been awarded the top-level rating by highly respected Australasian research house SuperRatings, with its funds also being recognised for their net benefit value.

SuperRatings released its annual ratings this week, with Mercer being one of eight to achieve the ‘Platinum’ rating for 2019, making it the sixth consecutive year the provider has achieved the status.

Assessment criteria considered by SuperRatings cover five key factors, including investments, fees, member servicing, scheme administration and governance and to achieve Platinum, schemes need to be well balanced across all key criteria.

With SuperRatings being a strong proponent of Net Benefit as the key measure of overall value for a member, it also recognised Mercer for the value it provides on a net benefit basis to customers.

The Mercer New Zealand Conservative Fund coming fourth out of funds surveyed in the New Zealand market on a net benefit basis, ahead of all bank schemes while its Balanced Fund featuring in the top ten funds by net benefit.

Mercer New Zealand Chief Executive Officer Martin Lewington says that as one of the few ratings houses in the market that considers a broad spectrum of criteria, it’s great to be recognised by SuperRatings with Platinum status for the sixth consecutive year.

“The accolade is a further reflection of our global expertise in superannuation funds management and the focus we put not just on investment strategies but also on member services such as our recent rollout of an interactive dashboard platform for members.”

“With recent jitters and concerns about volatility in the market, consistency and customer centric approach are set to become even more significant factors in a world where long-term, stable returns and transparency of performance with KiwiSaver providers are key. With much discussion around fees in the market recently, it’s also encouraging to be recognised for the high net benefit we provide our customers.”

SuperRatings’ Net Benefit methodology models investment returns achieved by each scheme over a seven-year period, as well as the fees charged over the period. The analysis uses a scenario of a member that has a salary of $50,000 and a starting balance of $20,000. It then assumes a contribution rate of 3.0% with a contribution tax of 17.5%.

SuperRatings also listed the Mercer-managed New Zealand Defence Force KiwiSaver Scheme in the list of providers with Platinum Status.

ENDS

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