Fund-vs-fund · NZ Fixed Interest
Mercer Macquarie NZ Fixed Interest Fund vs Russell Investments NZ Fixed Interest Fund
Both are NZ Fixed Interest 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 difference between these two funds is their annual fee. The Mercer Macquarie NZ Fixed Interest Fund charges 0.60% per annum, while the Russell Investments NZ Fixed Interest Fund charges 0.49% — an 11 basis point gap that, compounded over time, can meaningfully affect net returns in a low-yield fixed interest category. On five-year returns, Mercer Macquarie has recorded 0.71% per annum against Russell Investments' 0.54%, though neither figure adjusts for fees in this snapshot and past performance does not predict future results.
Both funds share an identical risk indicator of 3 and an identical growth asset allocation of 0.13%, placing them in structurally equivalent risk-return territory within the NZ Fixed Interest category. Fund size is comparable: Mercer Macquarie sits at approximately NZ$183.9 million, Russell Investments at approximately NZ$160.9 million.
Portfolio construction is closely aligned. Both funds concentrate their top holdings in New Zealand Government Bonds, with Mercer Macquarie's five largest positions spanning maturities from 2030 to 2036, and Russell Investments' top five running from 2027 to 2033 — the latter carrying modestly shorter duration exposure at the top of the portfolio, which carries different interest rate sensitivity.
One data note: the Russell Investments PDS URL in this snapshot references a "Sustainable Global Shares Funds" document, which may not reflect the current product disclosure statement for this specific fixed interest fund; readers should confirm the correct governing document.
Always verify fees, returns, and portfolio details against the source PDS and latest Quarterly Fund Update on FMA Disclose before relying on any of this information.
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
- Russell Investments NZ Fixed Interest Fund charges 0.11% lower in annual fund charges (0.49% vs 0.60%).
- 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 14 nz fixed interest funds we've matched on Sorted Smart Investor. Mechanical only — no opinion, no forward-looking view.
Annual fund charge
Lower is better
Mercer
0.60%
Lower half of cohort
Russell Investments
0.49%
Lower half of cohort
5-year return p.a.
Past performance — not a predictor
Mercer
0.71%
Lower half over 5 years
Russell Investments
0.85%
Lower half over 5 years
Fund size
Larger = more stable, lower close-risk
Mercer
NZ$184m
Upper half by size
Russell Investments
NZ$158m
Upper half by size
| Metric | Mercer | Russell Investments | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.60% | 0.49% | Lower is better |
| Risk indicator (1–7) | 3 | 3 | Higher = more volatility |
| 5-year return p.a. | 0.71% | 0.85% | Higher is better (past not future) |
| Fund size | NZ$184m | NZ$158m | Larger = more stable, lower close-risk |
| Growth / income split | 0% / 100% | 0% / 100% | 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 | 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
Mercer
Mercer Macquarie NZ Fixed Interest Fund
The fund is an actively managed portfolio of fixed interest securities. It is a medium risk investment product, focusing predominantly on government bonds and corporate securities in the New Zealand market. Environmental, Social and Governance characteristics are integrated into our investment process. The fund aims to provide a Gross Return above the return of the Bloomberg NZBond Composite 0+ Yr Index on a rolling three-year basis.Full Mercer Mercer Macquarie NZ Fixed Interest Fund profile →
Russell Investments
Russell Investments NZ Fixed Interest Fund
The underlying investment exposure is typically comprised of government fixed income securities, bank bills and cash equivalents, and securities issued by local authorities, semi-government organisations, and corporations, as well as to mortgage backed and asset backed securities. The underlying investment portfolio may from time to time be exposed to low grade or unrated debt securities to a limited extent, and derivatives. The fund also has the ability to invest in the Australian fixed income market either through Australian dollar denominated debt securities orFull Russell Investments Russell Investments NZ Fixed Interest Fund profile →
Documents
Crawled directly from each manager's website. How we record provenance →
Russell Investments
Common questions
What's the difference between the Mercer Macquarie NZ Fixed Interest Fund and the Russell Investments NZ Fixed Interest Fund?
Which fund has lower fees, Mercer Macquarie NZ Fixed Interest Fund or Russell Investments NZ Fixed Interest 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?
