Fund-vs-fund · Diversified
Mercer Income Generator FundvsMercer Responsible Balanced Fund
Both are Diversified 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.
How much do these two overlap?
They hold 129 of the same securities. If you held both, roughly 23.3% 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 | Mercer Income | Mercer Responsible | Min weight |
|---|---|---|---|
| NEW ZEALAND GOVERNMENT 200429 3.0 GB | 4.37% | 9.84% | 4.37% |
| Fisher & Paykel Healthcare | 5.03% | 2.06% | 2.06% |
| Infratil | 2.66% | 1.33% | 1.33% |
| Auckland International Airport | 3.20% | 1.15% | 1.15% |
| Liquidity Identifier | 1.07% | 1.07% | 1.07% |
| Contact Energy | 2.01% | 0.90% | 0.90% |
| a2 Milk | 1.92% | 0.83% | 0.83% |
| meridian energy lt | 1.64% | 0.66% | 0.66% |
| Mainfreight | 1.09% | 0.63% | 0.63% |
| Outstanding Settlement Receipts - USD | 1.10% | 0.56% | 0.56% |
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
Both funds are managed by Mercer, sit in the Diversified category, share an identical risk indicator of 4, and are governed by the same PDS. Despite these structural similarities, the most material difference lies in portfolio composition and the investment philosophy each reflects. The Mercer Responsible Balanced Fund's top holdings are dominated by global technology equities — Nvidia, Apple, and Microsoft feature prominently alongside NZ names — consistent with a growth-tilted, ESG-screened equity approach. The Mercer Income Generator Fund's top holdings skew toward yield-oriented assets: Fisher & Paykel Healthcare, Auckland International Airport, Infratil, an iShares MBS ETF, and a New Zealand Government Bond, suggesting a mandate oriented around income generation rather than capital growth.
This distinction in underlying securities correlates with a meaningful return differential over five years: the Responsible Balanced Fund returned 3.52% per annum against the Income Generator Fund's 2.47% — a gap of 105 basis points — though past returns are not indicative of future performance. Fees are close but not identical: 1.25% annually for the Responsible Balanced Fund versus 1.28% for the Income Generator Fund. Both report identical growth asset allocations of 53.15%, though the income-oriented holdings in the latter suggest that figure may capture asset classification differently across the two portfolios. Fund size also differs — NZD 28.4 million versus NZD 20.7 million respectively — which may carry implications for liquidity and trading costs. Neither fund is a KiwiSaver scheme account product based on the data provided.
Verify all figures against each fund's current PDS and latest Quarterly Fund Update on FMA Disclose before relying on this summary.
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
- Annual fund charges are within 0.05% of each other (1.28% vs 1.25%).
- Both are New Zealand PIE funds — investor tax is capped at the Prescribed Investor Rate (PIR), maximum 28%.
- Mercer Responsible Balanced Fund applies responsible-investment / ESG screening. The other fund does not.
Where each fund sits in its cohort
Percentile rank vs all 68 diversified funds we've matched on Sorted Smart Investor. Mechanical only — no opinion, no forward-looking view.
Annual fund charge
Lower is better
Mercer
1.28%
Highest 23% of cohort
Mercer
1.25%
Highest 24% of cohort
5-year return p.a.
Past performance — not a predictor
Mercer
2.47%
Lower half over 5 years
Mercer
3.52%
Upper half over 5 years
Fund size
Larger = more stable, lower close-risk
Mercer
NZ$21m
Lower half by size
Mercer
NZ$28m
Lower half by size
| Metric | Mercer | Mercer | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 1.28% | 1.25% | Lower is better |
| Risk indicator (1–7) | 4 | 4 | Higher = more volatility |
| 5-year return p.a. | 2.47% | 3.52% | Higher is better (past not future) |
| Fund size | NZ$21m | NZ$28m | Larger = more stable, lower close-risk |
| Growth / income split | 53% / 47% | 53% / 47% | 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 | No | Yes | Specific exclusions live in each fund's SIPO. |
| Available via | Direct | Direct | Platforms accepting retail subscriptions. |
What each fund says it does
Mercer
Mercer Income Generator Fund
The fund aims to provide a gross fixed monthly income in excess of bank deposit rates, along with a positive return on capital over the long term. To achieve this, the fund invests in a diversified mix of growth and defensive assets, with a focus on reliable income generation. Environmental, Social and Governance characteristics are integrated into the underlying investment managers’ investment processes. The fund aims to maximise the amount of the monthly distribution payments to investors by outperforming, over the medium term, the weighted average return of tFull Mercer Mercer Income Generator Fund profile →
Mercer
Mercer Responsible Balanced Fund
The fund is a diversified portfolio with a slightly higher allocation to a mix of growth assets (e.G., shares & listed property) relative to a mix of income assets (e.G., cash & fixed interest). The fund is managed to include specific additional responsible exclusion criteria which aims to avoid investments in certain companies or activities & is managed with reference to ESG factors and has some exposure to investment strategies targeting sustainability themes. This fund has additional exclusions applied as described in our Sustainable Investment Policy and has bFull Mercer Mercer Responsible Balanced Fund profile →
Documents
Crawled directly from each manager's website. How we record provenance →
Common questions
What's the difference between the Mercer Income Generator Fund and the Mercer Responsible Balanced Fund?
Which fund has lower fees, Mercer Income Generator Fund or Mercer Responsible Balanced Fund?
How do the 5-year returns compare?
Are both funds PIE-taxed in NZ?
Does either fund apply responsible-investment screening?
Where can I read the official documents for these funds?
