Fund-vs-fund · International Equities
Lighthouse Global Equity Fund vs Mercer Core Hedged 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 their risk profile and portfolio construction. The Lighthouse Global Equity Fund carries a risk indicator of 7 (the highest band on the FMA's scale), while the Mercer Core Hedged Global Shares Fund sits at 5 — a meaningful gap that reflects both how each fund is built and, in Mercer's case, the effect of currency hedging in dampening return volatility. Despite its lower risk indicator, Mercer allocates 98.31% to growth assets versus Lighthouse's 78.48%, with the remainder of the Lighthouse fund held largely in cash: BNZ cash at bank represents 22.04% of the portfolio at the snapshot date, suggesting the manager may be holding dry powder or managing redemption liquidity rather than being fully deployed.
Concentration is another point of contrast. Lighthouse's five named positions account for roughly 63% of the fund, led by Celestica (11.97%), Comfort Systems USA (10.57%), and Carvana (8.40%) — a high-conviction, mid-cap-tilted approach. Mercer's top five holdings sum to around 18%, reflecting a broadly diversified global index-aware structure with mega-cap technology names dominating.
On fees, Mercer charges 1.46% annually versus Lighthouse's 1.03%. Lighthouse has returned 10.71% per annum over five years against Mercer's 9.28%, though the cash drag, concentration, and higher risk indicator are relevant context for interpreting that difference. Both funds are similar in size at approximately NZD 17.7 million.
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
- Lighthouse Global Equity Fund charges 0.43% lower in annual fund charges (1.03% vs 1.46%).
- 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
Lighthouse
1.03%
Upper half of cohort
Mercer
1.46%
Highest 10% of cohort
5-year return p.a.
Past performance — not a predictor
Lighthouse
10.71%
Upper half over 5 years
Mercer
9.28%
Upper half over 5 years
Fund size
Larger = more stable, lower close-risk
Lighthouse
NZ$18m
Smallest 15% in cohort
Mercer
NZ$18m
Smallest 14% in cohort
| Metric | Lighthouse | Mercer | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 1.03% | 1.46% | Lower is better |
| Risk indicator (1–7) | 7 | 5 | Higher = more volatility |
| 5-year return p.a. | 10.71% | 9.28% | Higher is better (past not future) |
| Fund size | NZ$18m | NZ$18m | Larger = more stable, lower close-risk |
| Growth / income split | 78% / 22% | 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 to NZD | 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
Lighthouse
Lighthouse Global Equity Fund
The fund invests in very large capitalisation stocks and Exchange Traded Funds listed on the NYSE and Nasdaq stock markets. It may use leverage of up to 30% of NAV. The fund's foreign currency exposures are not hedged back to New Zealand dollars.Full Lighthouse Lighthouse Global Equity Fund profile →
Mercer
Mercer Core Hedged Global Shares Fund
The fund invests in shares listed on share markets predominately in developed economies and is fully hedged to the New Zealand dollar. The portfolio uses multiple managers and is diversified by region, manager and investment approaches. Environmental, Social and Governance characteristics are integrated into the underlying investment managers’ investment processes. The fund aims to provide a Gross Return above the return of the MSCI World Index with net dividends reinvested (100% hedged NZD on an after-tax basis) on a rolling three-year basis.Full Mercer Mercer Core Hedged Global Shares Fund profile →
Documents
Crawled directly from each manager's website. How we record provenance →
Lighthouse
Common questions
What's the difference between the Lighthouse Global Equity Fund and the Mercer Core Hedged Global Shares Fund?
Which fund has lower fees, Lighthouse Global Equity Fund or Mercer Core Hedged Global Shares 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?
