Fund-vs-fund · International Equities
Kernel S&P 500 (Unhedged) FundvsMercer Global Shares Fund
Kernel S&P 500 (Unhedged) Fund (fund size NZ$28.3 million, annual fund charge 0.25%) and Mercer Global Shares Fund (fund size NZ$30.1 million, annual fund charge 1.25%) 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 15.10% and 16.65%, per their quarterly fund updates filed on FMA Disclose.
How much do these two overlap?
They hold 333 of the same securities. If you held both, roughly 48.2% 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 S&P | Mercer Global | Min weight |
|---|---|---|---|
| Nvidia | 7.60% | 4.68% | 4.68% |
| Apple | 6.68% | 4.30% | 4.30% |
| Alphabet | 5.40% | 3.53% | 3.53% |
| Microsoft | 4.93% | 2.91% | 2.91% |
| Amazon.com | 3.65% | 2.12% | 2.12% |
| Broadcom | 2.63% | 1.57% | 1.57% |
| Meta Platforms | 2.24% | 1.41% | 1.41% |
| Tesla | 1.87% | 0.98% | 0.98% |
| Exxon Mobil Corp | 1.27% | 0.70% | 0.70% |
| Johnson & Johnson | 1.06% | 0.70% | 0.70% |
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 Kernel S&P 500 (Unhedged) Fund charges an annual fund fee of 0.25%, while the Mercer Global Shares Fund charges 1.25% — a full percentage point higher. Over time, that gap compounds and directly affects net returns, making it a central consideration for any investor comparing the two.
On risk, the funds diverge by one notch: Kernel's fund carries a risk indicator of 6 versus Mercer's 5, both on a standard 1–7 scale, suggesting Kernel's offering is assessed as carrying slightly higher volatility. Growth asset allocation is near-identical — 98.37% for Kernel and 98.31% for Mercer — so the risk difference likely reflects currency exposure, since Kernel's fund is explicitly unhedged against the NZD.
The five-year return comparison is one-sided: Mercer discloses a 10.36% per annum five-year return; Kernel's five-year figure is not available in our snapshot, likely because the fund lacks sufficient history. Fund size is comparable — NZD 28.3 million (Kernel) versus NZD 30.1 million (Mercer).
Top holdings overlap significantly — Nvidia, Apple, Microsoft, Amazon, and Alphabet appear in both — but Kernel's weights are noticeably larger for each name, consistent with tighter S&P 500 index-tracking. Mercer's broader mandate appears to dilute individual position sizes.
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
- Kernel S&P 500 (Unhedged) Fund charges 1.00% lower in annual fund charges (0.25% vs 1.25%).
- 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
1.25%
Highest 15% of cohort
5-year return p.a.
Past performance — not a predictor
Kernel
—
—
Mercer
10.36%
Upper half over 5 years
Fund size
Larger = more stable, lower close-risk
Kernel
NZ$28m
Lower half by size
Mercer
NZ$30m
Lower half by size
| Metric | Kernel | Mercer | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.25% | 1.25% | Lower is better |
| Risk indicator (1–7) | 6 | 5 | Higher = more volatility |
| 5-year return p.a. | — | 10.36% | Higher is better (past not future) |
| Fund size | NZ$28m | NZ$30m | 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 | Unhedged | — | 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. |
What each fund says it does
Kernel
Kernel S&P 500 (Unhedged) Fund
The Kernel S&P 500 (Unhedged) Fund�s investment objective is to provide a return (before tax, fees and expenses) that closely matches the return on the S&P 500 (NZD) IndexFull Kernel Kernel S&P 500 (Unhedged) Fund profile →
Mercer
Mercer Global Shares Fund
The fund invests in international shares listed on share markets around the world by using investment managers from around the world which are combined in a multi-manager fund. Environmental, Social and Governance characteristics are integrated into the underlying investment managers’ investment processes where applicable. The fund aims to provide a Gross Return above the return of the MSCI All Country World Index with net dividends reinvested (50% hedged to NZD on an after-tax basis) on a rolling three-year basis.Full Mercer Mercer 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 S&P 500 (Unhedged) Fund and the Mercer Global Shares Fund?
Which fund has lower fees, Kernel S&P 500 (Unhedged) Fund or Mercer Global Shares Fund?
Are both funds PIE-taxed in NZ?
Where can I read the official documents for these funds?
