Fund-vs-fund · International FI
Daintree Core Income PIE 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 is portfolio construction. Mercer Responsible Hedged Global Fixed Interest Index Fund holds a broadly diversified basket of international fixed interest securities directly — led by an iShares MBS ETF at 11.99% and multiple US Treasury lines — whereas Daintree Core Income PIE invests 99.17% of its assets into a single underlying vehicle, the Daintree Core Income Trust NZD, with 0.83% held as NZD cash. Investors in the Daintree PIE are therefore exposed to the composition, governance, and liquidity terms of that underlying trust, a layer of structure absent from the Mercer fund.
On risk, Mercer carries a risk indicator of 4 and Daintree a 3 (on the standard 1–7 FMA scale), reflecting Daintree's lower assessed volatility despite both sitting in the International Fixed Interest category. Growth asset allocations are slim in both funds — 0.13% for Mercer and 0.07% for Daintree — consistent with their income-oriented mandates.
The annual fund charge for Mercer is 0.43%; Daintree charges 0.73%, a 30-basis-point gap that compounds over time. Mercer discloses a five-year return of 0.48% per annum; Daintree's five-year return figure is not available in our current snapshot, so direct long-run performance comparison is not possible here. Fund sizes are broadly comparable: Mercer at NZD 381.9 million, Daintree at NZD 336.9 million.
Verify all figures against each fund's current PDS and latest Quarterly Fund Update on FMA Disclose before relying on this summary for any investment decision.
Cached comparison generated 2026-05-21 from each fund's latest FMA Disclose QFU. Regenerated when the underlying facts change.
What's different at a glance
- Mercer Responsible Hedged Global Fixed Interest Index Fund charges 0.30% lower in annual fund charges (0.43% vs 0.73%).
- 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
Daintree
0.73%
Upper half of cohort
Mercer
0.43%
Lower half of cohort
5-year return p.a.
Past performance — not a predictor
Daintree
—
—
Mercer
0.48%
Upper half over 5 years
Fund size
Larger = more stable, lower close-risk
Daintree
NZ$337m
Largest 24% in cohort
Mercer
NZ$382m
Largest 21% in cohort
| Metric | Daintree | Mercer | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.73% | 0.43% | Lower is better |
| Risk indicator (1–7) | 3 | 4 | Higher = more volatility |
| 5-year return p.a. | — | 0.48% | Higher is better (past not future) |
| Fund size | NZ$337m | 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 | InvestNow · Direct | InvestNow · 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
Daintree
Daintree Core Income PIE
The Fund invests into the Daintree Core Income Trust with a diversified portfolio of international credit and fixed income securities and cash and applies a range of strategies that include duration and yield curve management, (actively managing the maturity profile of the portfolio), sector rotation and individual security selection. The aim of the Fund is to provide an absolute return (greater than cash) over time and a steady stream of income and capital stability over the medium term.Full Daintree Daintree Core Income PIE 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 →
Daintree
Common questions
What's the difference between the Daintree Core Income PIE and the Mercer Responsible Hedged Global Fixed Interest Index Fund?
Which fund has lower fees, Daintree Core Income PIE or Mercer Responsible Hedged Global Fixed Interest Index Fund?
Are both funds PIE-taxed in NZ?
Does either fund apply responsible-investment screening?
Where can I read the official documents for these funds?
