Fund-vs-fund · Australasian Equities
Harbour Australasian Equity Income Fund vs Mercer NZ Shares Passive Fund
Both are Australasian Equities 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 Mercer NZ Shares Passive Fund tracks the market passively at an annual fund charge of 0.36%, while the Harbour Australasian Equity Income Fund is actively managed — with an income orientation — at 1.10%, a fee gap of 74 basis points that compounds meaningfully over time.
Both funds sit in the Australasian Equities category and hold an identical 98.31% in growth assets, but their risk indicators diverge: Mercer carries a risk indicator of 5 (out of 7), Harbour a 4, suggesting Harbour's income-focused construction has historically produced somewhat lower return volatility. Over the five-year period captured in each fund's latest Quarterly Fund Update, Harbour returned 2.81% per annum against Mercer's 0.02% — though the passive fund's near-zero return over that window likely reflects the performance of the NZX during that specific period rather than structural underperformance relative to its index.
Portfolio construction also differs. Mercer's largest holding is Fisher & Paykel Healthcare at 16.54%, giving it significant single-stock concentration. Harbour's top position is Contact Energy at 9.84%, with a more distributed top-five skewed toward yield-generating names such as Infratil, Mainfreight, EBOS Group, and Freightways. Fund sizes are comparable: Mercer at NZD 40.5 million, Harbour at NZD 34.9 million. Neither fund is a KiwiSaver scheme account fund based on the data provided.
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 NZ Shares Passive Fund charges 0.74% lower in annual fund charges (0.36% vs 1.10%).
- Both are New Zealand PIE funds — investor tax is capped at the Prescribed Investor Rate (PIR), maximum 28%.
Where each fund sits in its cohort
Percentile rank vs all 58 australasian equities funds we've matched on Sorted Smart Investor. Mechanical only — no opinion, no forward-looking view.
Annual fund charge
Lower is better
Harbour
1.10%
Upper half of cohort
Mercer
0.36%
Lowest 20% of cohort
5-year return p.a.
Past performance — not a predictor
Harbour
2.81%
Upper half over 5 years
Mercer
0.02%
Bottom 4% over 5 years
Fund size
Larger = more stable, lower close-risk
Harbour
NZ$35m
Lower half by size
Mercer
NZ$41m
Lower half by size
| Metric | Harbour | Mercer | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 1.10% | 0.36% | Lower is better |
| Risk indicator (1–7) | 4 | 5 | Higher = more volatility |
| 5-year return p.a. | 2.81% | 0.02% | Higher is better (past not future) |
| Fund size | NZ$35m | NZ$41m | Larger = more stable, lower close-risk |
| Growth / income split | 98% / 2% | 98% / 2% | More growth = higher long-run return + volatility |
| NZ tax structure | PIE (PIR-capped) | PIE (PIR-capped) | PIE = simpler. FIF = annual return. |
| Currency hedging | — | — | Hedged smooths NZD/foreign FX moves at a small cost. |
| Responsible investment screening | No | No | 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.
Matching holdings
4
of each fund's top 10
Harbour weight in shared
30.5%
of Harbour Australasian Equity Income Fund top 10 is shared
Mercer weight in shared
22.4%
of Mercer NZ Shares Passive Fund top 10 is shared
| Holding | Harbour | Mercer |
|---|---|---|
 Infratil NZ | 9.64% | 8.77% |
 Contact Energy NZ | 9.84% | 6.63% |
 Mainfreight NZ | 6.58% | 3.60% |
 EBOS Group NZ | 4.48% | 3.44% |
"Min weight" = the smaller of the two weights — a conservative read of how much exposure you'd have to that position if you held both funds.
What each fund says it does
Harbour
Harbour Australasian Equity Income Fund
The Fund is an actively managed strategy that invests predominantly in New Zealand and Australian listed equities that generate attractive dividend yields as well as cash and fixed interest securities.Full Harbour Harbour Australasian Equity Income Fund profile →
Mercer
Mercer NZ Shares Passive Fund
The fund is a passively managed New Zealand shares portfolio that is designed to track the return of the S&P/NZX 50 Index. Environmental, Social and Governance characteristics are integrated into the underlying investment managers' investment processes. The fund aims to provide a return that closely matches the return of the S&P/NZX 50 Index (on a gross basis and including imputation credits).Full Mercer Mercer NZ Shares Passive Fund profile →
Documents
Crawled directly from each manager's website. How we record provenance →
Harbour
LiveLast verified 2026-05-08
Common questions
What's the difference between the Harbour Australasian Equity Income Fund and the Mercer NZ Shares Passive Fund?
Which fund has lower fees, Harbour Australasian Equity Income Fund or Mercer NZ Shares Passive Fund?
How do the 5-year returns compare?
Are both funds PIE-taxed in NZ?
Where can I read the official documents for these funds?
