Fund-vs-fund · NZ Fixed Interest
Harbour NZ Corporate Bond Fund vs Milford Trans-Tasman Bond 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 structural difference between these two funds is cost. Milford Trans-Tasman Bond Fund charges an annual fund fee of 0.65%, while Harbour NZ Corporate Bond Fund charges 0.47% — an 18 basis point gap that compounds meaningfully over time in a fixed interest category where return margins are narrow. Over the five years to the latest quarterly fund update, Milford returned 1.66% per annum against Harbour's 1.57%, a 9 basis point difference in favour of Milford that is smaller than the fee differential investors pay to achieve it.
Both funds sit at risk indicator 3 on the standardised 1–7 scale and carry an identical growth assets allocation of 0.07%, meaning their defensive income-oriented positioning is effectively equivalent at a high level. Fund size differs substantially: Milford's fund holds approximately NZD 2.14 billion versus Harbour's NZD 619 million, though neither the PDS nor the quarterly fund updates disclose whether this scale difference affects execution costs or liquidity management in practice.
Portfolio composition reveals a difference in issuer emphasis. Milford's top holdings are concentrated in NZ Local Government Funding Agency and Housing New Zealand bonds, pointing toward government-related but sub-sovereign credit. Harbour's top five positions are dominated by direct NZ Government Stock across multiple maturities, with corporate exposure (Kiwibank FRN) appearing lower in the stack — consistent with its "Corporate Bond" label being broader in practice than the name alone implies.
Always verify these figures against each fund's current PDS and latest quarterly fund update on FMA Disclose before relying on them for any investment decision.
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
- Harbour NZ Corporate Bond Fund charges 0.18% lower in annual fund charges (0.47% vs 0.65%).
- Both are New Zealand PIE funds — investor tax is capped at the Prescribed Investor Rate (PIR), maximum 28%.
- Milford Trans-Tasman Bond Fund is roughly 3.5× the size of the other fund.
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
0.47%
Lowest 25% of cohort
Milford
0.65%
Upper half of cohort
5-year return p.a.
Past performance — not a predictor
Harbour
1.57%
Upper half over 5 years
Milford
1.66%
Top 12% over 5 years
Fund size
Larger = more stable, lower close-risk
Harbour
NZ$619m
Largest 18% in cohort
Milford
NZ$2.14b
Largest 4% in cohort
| Metric | Harbour | Milford | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.47% | 0.65% | Lower is better |
| Risk indicator (1–7) | 3 | 3 | Higher = more volatility |
| 5-year return p.a. | 1.57% | 1.66% | Higher is better (past not future) |
| Fund size | NZ$619m | NZ$2.14b | 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 Corporate Bond Fund
The Fund is designed for investors seeking income with scope for capital appreciation and/or with a low tolerance for large declines in investment values. The Fund invests predominantly in New Zealand investment grade fixed interest securities and Australasian equities which pay a sustainable dividend yield. Other tools, such as active management and scope to invest in sub investment grade securities may also be used to enhance returns.Full Harbour Harbour NZ Corporate Bond Fund profile →
Milford
Milford Trans-Tasman Bond Fund
The Fund's objective is to generate a positive, low volatility return after the base fund fee but before tax, that exceeds the relevant benchmark over the minimum recommended investment timeframe of three years. It primarily invests in trans-Tasman fixed interest securities.Full Milford Milford Trans-Tasman Bond Fund profile →
Documents
Crawled directly from each manager's website. How we record provenance →
Harbour
LiveLast verified 2026-05-08
Milford
Common questions
What's the difference between the Harbour NZ Corporate Bond Fund and the Milford Trans-Tasman Bond Fund?
Which fund has lower fees, Harbour NZ Corporate Bond Fund or Milford Trans-Tasman Bond 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?
