Fund-vs-fund · NZ Fixed Interest
Harbour NZ Core Fixed Interest Fund vs Mercer Macquarie NZ Fixed Interest Fund
Both are NZ Fixed Interest 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 difference between these two funds is their five-year return record: the Harbour NZ Core Fixed Interest Fund returned 1.13% per annum over five years versus 0.71% for the Mercer Macquarie NZ Fixed Interest Fund — a gap of 42 basis points annually across the same NZ Fixed Interest category. This divergence is notable given that both funds share an identical risk indicator of 3 (out of 7) and an identical growth assets allocation of 0.07%, suggesting broadly similar risk positioning rather than a structural explanation for the performance difference.
On fees, Mercer Macquarie charges 0.60% annually compared to Harbour's 0.66%, a modest 6 basis point advantage for Mercer that has not translated into a higher net return over the five-year window captured in these quarterly fund updates. Harbour's fund is larger at approximately NZD 289 million versus Mercer Macquarie's approximately NZD 184 million, though fund size alone carries no direct implication for returns in fixed interest.
Portfolio construction is broadly similar: both funds concentrate their top five holdings in New Zealand government bonds across comparable maturities, with individual position weights ranging from roughly 5% to 11% at Harbour and 6% to 8% at Mercer Macquarie. Harbour's top holding — NZ Government Stock maturing 15/05/2031 — is weighted at 11.19%, suggesting modestly higher concentration at the position level relative to Mercer Macquarie's more evenly distributed top five.
Always verify all figures against each fund's current product disclosure statement and latest quarterly fund update on FMA Disclose before relying on this comparison.
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 Macquarie NZ Fixed Interest Fund charges 0.06% lower in annual fund charges (0.60% vs 0.66%).
- 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 14 nz fixed interest funds we've matched on Sorted Smart Investor. Mechanical only — no opinion, no forward-looking view.
Annual fund charge
Lower is better
Harbour
0.66%
Upper half of cohort
Mercer
0.60%
Lower half of cohort
5-year return p.a.
Past performance — not a predictor
Harbour
1.13%
Upper half over 5 years
Mercer
0.71%
Lower half over 5 years
Fund size
Larger = more stable, lower close-risk
Harbour
NZ$289m
Upper half by size
Mercer
NZ$184m
Upper half by size
| Metric | Harbour | Mercer | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.66% | 0.60% | Lower is better |
| Risk indicator (1–7) | 3 | 3 | Higher = more volatility |
| 5-year return p.a. | 1.13% | 0.71% | Higher is better (past not future) |
| Fund size | NZ$289m | NZ$184m | 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 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.
What each fund says it does
Harbour
Harbour NZ Core Fixed Interest Fund
The Fund is an actively managed investment grade bond fund that invests mainly in New Zealand government bond and corporate bond fixed income securities.Full Harbour Harbour NZ Core Fixed Interest Fund profile →
Mercer
Mercer Macquarie NZ Fixed Interest Fund
The fund is an actively managed portfolio of fixed interest securities. It is a medium risk investment product, focusing predominantly on government bonds and corporate securities in the New Zealand market. Environmental, Social and Governance characteristics are integrated into our investment process. The fund aims to provide a Gross Return above the return of the Bloomberg NZBond Composite 0+ Yr Index on a rolling three-year basis.Full Mercer Mercer Macquarie NZ Fixed Interest 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 NZ Core Fixed Interest Fund and the Mercer Macquarie NZ Fixed Interest Fund?
Which fund has lower fees, Harbour NZ Core Fixed Interest Fund or Mercer Macquarie NZ Fixed Interest 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?
