Fund-vs-fund · International FI
Brandywine Global Opportunistic Fixed Income Fund vs Mercer Responsible Hedged Global Fixed Interest Index Fund
Both are International FI funds available to NZ retail investors. Numbers below are sourced from the FMA Disclose register via Sorted Smart Investor and reflect the latest published quarterly fund updates.
Why these two differ
The most material structural difference between these two funds is investment approach and cost. The Brandywine Global Opportunistic Fixed Income Fund is an actively managed strategy run by Brandywine (distributed under Franklin Templeton), carrying an annual fund charge of 0.77%. The Mercer Responsible Hedged Global Fixed Interest Index Fund is an index-tracking strategy with a responsible investment screen, charging 0.43% annually — a 34 basis point gap that compounds meaningfully over time in a low-return asset class.
Both funds sit at risk indicator 4 on the standard 1–7 scale and hold an identical 0.07% in growth assets, placing them firmly in the income-asset category. Fund sizes are comparable: Brandywine at approximately NZD 410.3 million, Mercer at approximately NZD 381.9 million. Over the five-year period reported in their respective Quarterly Fund Updates, the Mercer fund returned 0.48% per annum against Brandywine's 0.24% per annum, though past returns are not a reliable indicator of future performance.
Portfolio construction differs sharply. Brandywine's top holdings are concentrated — its single largest position, a US Treasury floating-rate note, represents 8.42%, and the portfolio includes emerging-market sovereign debt (Colombia, 4.10%) and a credit-default-swap instrument, reflecting active, opportunistic positioning. Mercer's largest holding is the iShares MBS ETF at 11.99%, with remaining disclosed positions each below 0.60%, consistent with broad index replication. Mercer's "responsible" label implies ESG screening criteria, though the specific screens are defined in its SIPO and PDS rather than the QFU alone.
Verify all figures against each fund's current PDS and latest Quarterly Fund Update on FMA Disclose before relying on this summary.
Comparison generated 2026-07-05 from each fund's FMA Disclose QFU facts as at that date. If the underlying facts change, this narrative is withheld until it is regenerated — the tables on this page always reflect the current data.
What's different at a glance
- Mercer Responsible Hedged Global Fixed Interest Index Fund charges 0.34% lower in annual fund charges (0.43% vs 0.77%).
- Both are New Zealand PIE funds — investor tax is capped at the Prescribed Investor Rate (PIR), maximum 28%.
- Mercer Responsible Hedged Global Fixed Interest Index Fund applies responsible-investment / ESG screening. The other fund does not.
Where each fund sits in its cohort
Percentile rank vs all 31 international fi funds we've matched on Sorted Smart Investor. Mechanical only — no opinion, no forward-looking view.
Annual fund charge
Lower is better
Brandywine
0.77%
Upper half of cohort
Mercer
0.43%
Lower half of cohort
5-year return p.a.
Past performance — not a predictor
Brandywine
0.24%
Lower half over 5 years
Mercer
0.48%
Upper half over 5 years
Fund size
Larger = more stable, lower close-risk
Brandywine
NZ$410m
Largest 15% in cohort
Mercer
NZ$382m
Largest 21% in cohort
| Metric | Brandywine | Mercer | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.77% | 0.43% | Lower is better |
| Risk indicator (1–7) | 4 | 4 | Higher = more volatility |
| 5-year return p.a. | 0.24% | 0.48% | Higher is better (past not future) |
| Fund size | NZ$410m | NZ$382m | Larger = more stable, lower close-risk |
| Growth / income split | 0% / 100% | 0% / 100% | More growth = higher long-run return + volatility |
| NZ tax structure | PIE (PIR-capped) | PIE (PIR-capped) | PIE = simpler. FIF = annual return. |
| Currency hedging | — | Hedged to NZD | Hedged smooths NZD/foreign FX moves at a small cost. |
| Responsible investment screening | No | Yes | Specific exclusions live in each fund's SIPO. |
| Available via | Direct | Direct | Platforms accepting retail subscriptions. |
Portfolio overlap
How many top-10 positions both funds hold, and at what weight. Computed from each fund's most recently disclosed top-10 holdings — exact-name matched (Microsoft Corp. = Microsoft Corporation), with a Cash / Cash & Equivalents collapse rule.
What each fund says it does
Brandywine
Brandywine Global Opportunistic Fixed Income Fund
The fund invests in an actively managed portfolio of sovereign bonds, investment grade corporate bonds, mortgage securities, currencies, and other similar securities. The fund can also invest in emerging market debt, high yield debt, and below investment grade non-sovereign and corporate debt.Full Brandywine Brandywine Global Opportunistic Fixed Income Fund profile →
Mercer
Mercer Responsible Hedged Global Fixed Interest Index Fund
The fund is a passively managed international fixed interest portfolio that is designed to track the return of the Bloomberg MSCI Global Aggregate SRI Select ex-Fossil Fuels Index. The fund is managed to include specific additional responsible exclusions criteria which aims to avoid investments in certain companies or activities, and is managed with reference to environmental, social and governance factors. This fund has additional exclusions applied as described in our Sustainable Investment Policy and has been certified by the Responsible Investment AssociationFull Mercer Mercer Responsible Hedged Global Fixed Interest Index Fund profile →
Documents
Crawled directly from each manager's website. How we record provenance →
Brandywine
Common questions
What's the difference between the Brandywine Global Opportunistic Fixed Income Fund and the Mercer Responsible Hedged Global Fixed Interest Index Fund?
Which fund has lower fees, Brandywine Global Opportunistic Fixed Income Fund or Mercer Responsible Hedged Global Fixed Interest Index Fund?
How do the 5-year returns compare?
Are both funds PIE-taxed in NZ?
Does either fund apply responsible-investment screening?
Where can I read the official documents for these funds?
