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 their investment approach: Harbour Australasian Equity Income Fund is an actively managed, income-oriented strategy, while Mercer NZ Shares Passive Fund tracks an index passively. This distinction drives a significant fee gap — Harbour charges 1.10% per annum versus Mercer's 0.36% — a difference of 74 basis points that compounds meaningfully over time.
Despite sharing an identical growth asset allocation of 98.31%, their risk indicators diverge: Harbour sits at 4 on the FMA's 1–7 scale, while Mercer registers at 5, suggesting the passive fund carries higher measured volatility, likely reflecting its fuller market-cap exposure. The five-year return figures reinforce a further contrast: Harbour returned 4.34% annually versus Mercer's 0.02%, though past returns do not predict future performance and the passive fund's near-zero figure may reflect a specific measurement window rather than structural underperformance.
Portfolio construction also differs. Harbour's top holdings are tilted toward infrastructure and logistics names — Infratil (8.88%), Contact Energy (8.32%), and Mainfreight (6.67%) — consistent with an income focus. Mercer's largest position is Fisher & Paykel Healthcare at 16.54%, reflecting index concentration in New Zealand's largest listed company by market capitalisation. Both funds are similarly sized, at approximately NZD 40 million each.
Neither fund is a KiwiSaver scheme account product based on the data provided. Always verify fee rates, returns, and holdings against each fund's current PDS and latest Quarterly Fund Update on FMA Disclose before relying on any figure here.
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 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
- Supporting document7507 kB · file fingerprint recorded
- Supporting document2611 kB · file fingerprint recorded
- Supporting document3223 kB · file fingerprint recorded
- Supporting document2469 kB · file fingerprint recorded
- Supporting document8447 kB · file fingerprint recorded
- Supporting document4303 kB · file fingerprint recorded
- + 9 more on the fund page
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?
