Harbour NZ Core Fixed Interest Fund vs Mercer Macquarie NZ Fixed Interest Fund

The most material structural difference between these two funds is fee and scale. The Mercer Macquarie NZ Fixed Interest Fund charges an annual fund charge of 0.60%, while the Harbour NZ Core Fixed Interest Fund charges 0.66% — a six-basis-point gap that, compounded over time, can meaningfully affect net returns on a fixed interest portfolio where absolute return margins are narrow. Harbour's fund is larger at approximately NZD 300 million versus Mercer's roughly NZD 184 million, though both are of meaningful scale for this asset class.

Both funds carry a risk indicator of 3 out of 7 and hold an identical 0.13% allocation to growth assets, placing them in structurally comparable defensive territory. The five-year returns diverge modestly: Harbour recorded 0.82% per annum against Mercer's 0.71%, though past performance in a rising-rate environment reflects mark-to-market dynamics as much as manager skill, and neither figure guarantees future outcomes.

Portfolio construction differs in concentration. Harbour's top five holdings span a wider maturity range — including an inflation-linked bond (NZGS Index Linked Bond 3.00% 20/09/2030) — and its single largest holding represents 11.32% of the fund. Mercer's top five are all nominal New Zealand Government Bonds with a tighter coupon band (3.50%–4.50%) and more evenly distributed weights, the largest at 7.98%. Harbour's inclusion of index-linked exposure introduces a degree of inflation sensitivity absent from Mercer's disclosed top holdings.

Always verify current fees, holdings, and fund details against each fund's product disclosure statement and latest quarterly fund update on FMA Disclose before relying on any of this information.