Fund-vs-fund · International Equities
Kernel Global ESG FundvsMercer Responsible Global Shares Fund
Kernel Global ESG Fund (fund size NZ$13.4 million, annual fund charge 0.25%) and Mercer Responsible Global Shares Fund (fund size NZ$12.9 million, annual fund charge 1.69%) are both international equities managed funds, as shown on Sorted Smart Investor on 22 May 2026; for the year to 31 March 2026 their 1-year returns after fees and tax were 14.23% and 16.36%, per their quarterly fund updates filed on FMA Disclose.
How much do these two overlap?
They hold 242 of the same securities. If you held both, roughly 45.6% of your money would be in the same companies — so the diversification you get from holding the pair is smaller than holding two funds suggests.
| Shared holding | Kernel Global | Mercer Responsible | Min weight |
|---|---|---|---|
| Nvidia | 5.52% | 5.29% | 5.29% |
| Apple | 4.53% | 4.90% | 4.53% |
| Alphabet | 4.92% | 3.80% | 3.80% |
| Microsoft | 4.83% | 3.08% | 3.08% |
| Amazon.com | 2.39% | 2.39% | 2.39% |
| Broadcom | 1.38% | 1.68% | 1.38% |
| Tesla | 2.33% | 0.99% | 0.99% |
| ASML Holding | 0.98% | 0.89% | 0.89% |
| Costco Wholesale | 1.27% | 0.81% | 0.81% |
| Meta Platforms | 0.69% | 1.63% | 0.69% |
Min weight is the smaller of the two weightings — if you hold both funds, that is the floor of your exposure to that position. Direct holdings only: anything either fund holds through an underlying fund or ETF is not counted, so the real overlap can only be higher. From each fund's FMA Disclose full portfolio filing.
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 84 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 11% 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. |
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?
