Fund-vs-fund · International Equities
Kernel S&P 500 (Unhedged) Fund vs Mercer 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 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 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
1.25%
Highest 17% 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. |
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
7
of each fund's top 10
Kernel weight in shared
25.5%
of Kernel S&P 500 (Unhedged) Fund top 10 is shared
Mercer weight in shared
15.8%
of Mercer Global Shares Fund top 10 is shared
| Holding | Kernel | Mercer |
|---|---|---|
 Apple Inc US | 6.68% | 4.30% |
 Microsoft US | 4.93% | 2.91% |
 Alphabet Inc Class A US | 3.00% | 2.15% |
 Amazon.Com Inc US | 3.65% | 2.12% |
 Broadcom Inc US | 2.63% | 1.57% |
 Meta Platforms Inc US | 2.24% | 1.41% |
| Alphabet Inc Class C US | 2.40% | 1.38% |
"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 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?
