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 cost. The Russell Investments NZ Fixed Interest Fund discloses an annual fund charge of 0.49%, while the Mercer Macquarie NZ Fixed Interest Fund discloses 0.60% — an 11 basis point gap that compounds meaningfully over time in a fixed interest category where return margins are narrow. Both funds sit at Risk Indicator 3 on the standard FMA scale and carry an identical 0.07% allocation to growth assets, placing them structurally in the same defensive, income-oriented profile.
On reported performance, Russell Investments discloses a five-year return of 0.85% per annum versus Mercer's 0.71% — a modest but directionally consistent difference. Fund size differs slightly: Mercer at approximately NZD 183.9 million and Russell Investments at approximately NZD 157.8 million, both of meaningful scale for a domestic fixed interest mandate.
Portfolio composition is closely aligned. Both funds concentrate their top holdings in New Zealand Government Bonds across similar maturity profiles — 2027 through 2036 — with individual positions ranging from roughly 5% to 8% of each portfolio. This overlap suggests comparable interest rate sensitivity and credit quality at the top-of-book level, though full portfolio disclosure beyond the top five holdings would be needed to assess meaningful divergence further down.
One data note: the PDS URL associated with the Russell Investments fund references a "Sustainable Global Shares Funds" document, which may warrant verification that the correct product disclosure statement has been matched to this fund.
Always verify these figures against the source PDS and latest Quarterly Fund Update on FMA Disclose before relying on any of this information.
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
- 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?
