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, which diverge sharply despite both sitting in the International Equities category. The Lighthouse Global Equity Fund carries a risk indicator of 7 (the highest band on the standard scale), while the Mercer Core Hedged Global Shares Fund sits at 5 — a meaningful gap that reflects both concentration and currency management choices. Mercer's fund name signals currency hedging back to NZD, which dampens foreign exchange volatility and contributes to the lower risk reading; Lighthouse's PDS should be consulted to confirm its hedging policy.
Portfolio construction differs substantially. Lighthouse holds 22% in cash at bank (BNZ) as its single largest position, with the remainder concentrated in a small number of individual equities and one ETF — the top five positions account for roughly 63% of the fund. Mercer's top five holdings, all large-cap global technology names, total around 18%, suggesting a far more diversified underlying portfolio. Lighthouse allocates 78% to growth assets versus Mercer's 98%, with the cash drag likely explaining part of that gap.
On fees, Mercer charges 1.46% annually compared to Lighthouse's 1.03%. Five-year returns to the latest QFU snapshot show Lighthouse at 10.71% and Mercer at 9.28%, though the different risk levels make direct return comparison limited in isolation. Both funds are similarly sized at approximately NZD 17.7 million.
Verify all figures against each fund's current PDS and latest Quarterly Fund Update on FMA Disclose before relying on this summary.
Cached comparison generated 2026-05-21 from each fund's latest FMA Disclose QFU. Regenerated when the underlying facts change.
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?
