Fund-vs-fund · International Equities
Kernel Global ESG Fund vs Mercer Responsible Global Shares Fund
Both are International 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 cost. The Mercer Responsible Global Shares Fund charges an annual fund charge of 1.69%, compared to 0.25% for the Kernel Global ESG Fund — a gap of 1.44 percentage points that compounds meaningfully over time on any given investment balance.
Both funds sit in the International Equities category, carry a risk indicator of 5 out of 7, and hold almost identical growth asset allocations (Mercer at 98.31%, Kernel at 98.37%). Their top-five holdings are strikingly similar — Nvidia, Apple, Microsoft, Alphabet, and Amazon feature prominently in both — suggesting comparable broad-market ESG equity exposure despite different underlying index or manager methodologies.
On performance, Mercer discloses a five-year annualised return of 9.26%. Kernel's five-year return is not available in this snapshot, likely reflecting the fund's shorter operating history; investors should check Kernel's latest Quarterly Fund Update on FMA Disclose directly for the most current returns data. Fund size is comparable: Mercer sits at approximately NZD 12.85 million and Kernel at NZD 13.41 million, both relatively small pools by institutional standards.
The Kernel fund's PDS references a KiwiSaver scheme account structure, while Mercer's PDS covers a multi-asset-class fund range — investors should confirm which legal structure applies to their intended investment. Always verify fees, returns, and fund details against each fund's current PDS and latest Quarterly Fund Update on FMA Disclose before relying on any of this information.
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
- Kernel Global ESG Fund charges 1.44% lower in annual fund charges (0.25% vs 1.69%).
- 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 81 international equities funds we've matched on Sorted Smart Investor. Mechanical only — no opinion, no forward-looking view.
Annual fund charge
Lower is better
Kernel
0.25%
Lowest 15% of cohort
Mercer
1.69%
Highest 7% of cohort
5-year return p.a.
Past performance — not a predictor
Kernel
—
—
Mercer
9.26%
Upper half over 5 years
Fund size
Larger = more stable, lower close-risk
Kernel
NZ$13m
Smallest 12% in cohort
Mercer
NZ$13m
Smallest 10% in cohort
| Metric | Kernel | Mercer | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.25% | 1.69% | Lower is better |
| Risk indicator (1–7) | 5 | 5 | Higher = more volatility |
| 5-year return p.a. | — | 9.26% | Higher is better (past not future) |
| Fund size | NZ$13m | NZ$13m | 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 | Yes | Yes | 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
5
of each fund's top 10
Kernel weight in shared
16.7%
of Kernel Global ESG Fund top 10 is shared
Mercer weight in shared
14.2%
of Mercer Responsible Global Shares Fund top 10 is shared
| Holding | Kernel | Mercer |
|---|---|---|
 Apple Inc US | 4.53% | 4.90% |
 Microsoft US | 4.83% | 3.08% |
 Alphabet Inc Class A US | 2.74% | 2.53% |
 Amazon.Com Inc US | 2.39% | 2.39% |
| Alphabet Inc Class C US | 2.18% | 1.27% |
"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
Kernel
Kernel Global ESG Fund
The Kernel Global ESG Fund�s investment objective is to provide a return (before tax, fees and expenses) that closely matches the return on the S&P World Net Zero 2050 Paris-Aligned ESG ex non-pharma Animal Testing (PAB Ex AT) (NZD) IndexFull Kernel Kernel Global ESG Fund profile →
Mercer
Mercer Responsible Global Shares Fund
The fund invests in shares listed on international share markets managed within a sustainable approach. The fund is managed to include specific additional responsible exclusions criteria which aims to avoid investment in certain companies or activities, and is manaed with reference to environmental, social and governance factors. This fund has additional exclusions applied as described in our Sustainable Investment Policy and has been certified by the Responsible Investment Association of Australasia (RIAA). The fund aims to outperform the MSCI World Index withFull Mercer Mercer Responsible Global Shares Fund profile →
Documents
Crawled directly from each manager's website. How we record provenance →
Kernel
Common questions
What's the difference between the Kernel Global ESG Fund and the Mercer Responsible Global Shares Fund?
Which fund has lower fees, Kernel Global ESG Fund or Mercer Responsible Global Shares Fund?
Are both funds PIE-taxed in NZ?
Where can I read the official documents for these funds?
