Fund-vs-fund · NZ Fixed Interest
Mercer Macquarie NZ Short Duration Fund vs Smart NZ Bond ETF
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 structural difference between these two funds is their risk profile relative to their fee and return history. The Smart NZ Bond ETF (Smartshares) carries a risk indicator of 3, one step higher than the Mercer Macquarie NZ Short Duration Fund's risk indicator of 2, despite both funds sitting in the NZ Fixed Interest category and holding an identical growth assets allocation of 0.07%. The higher risk rating for the Smartshares fund likely reflects greater interest rate sensitivity, consistent with its name suggesting a broader duration mandate compared with Mercer's explicit "short duration" positioning, which deliberately limits exposure to longer-dated bonds.
On fees, the Smart NZ Bond ETF charges 0.54% per annum against Mercer's 0.68%, a 14-basis-point difference. Over the five years captured in these quarterly fund updates, however, the Mercer fund returned 1.87% per annum versus 1.43% for the Smartshares fund — meaning the higher-fee fund produced a higher net return over this period, though past performance carries no guarantee of future outcomes. By fund size, Smartshares edges ahead at approximately NZD 58.4 million versus Mercer's NZD 47.0 million.
Portfolio composition differs notably: Mercer's top holdings are concentrated in NZ government bonds and investment-grade corporate bonds, while Smartshares includes NZLGFA (local government) bonds, Housing New Zealand bonds, and a 6.81% cash allocation to an ANZ Bank account as its largest single position.
Verify all figures against each fund's current product disclosure statement and latest quarterly fund update on FMA Disclose before relying on this summary 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
- Smart NZ Bond ETF charges 0.14% lower in annual fund charges (0.54% vs 0.68%).
- 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
0.68%
Upper half of cohort
Smartshares
0.54%
Lower half of cohort
5-year return p.a.
Past performance — not a predictor
Mercer
1.87%
Top 4% over 5 years
Smartshares
1.43%
Upper half over 5 years
Fund size
Larger = more stable, lower close-risk
Mercer
NZ$47m
Lower half by size
Smartshares
NZ$58m
Lower half by size
| Metric | Mercer | Smartshares | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.68% | 0.54% | Lower is better |
| Risk indicator (1–7) | 2 | 3 | Higher = more volatility |
| 5-year return p.a. | 1.87% | 1.43% | Higher is better (past not future) |
| Fund size | NZ$47m | NZ$58m | 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 Short Duration Fund
The fund is an actively managed portfolio of fixed interest securities. It is a low-risk investment product, focusing predominantly on corporate securities in the New Zealand and Australian market with a shorter average maturity than a standard fixed interest fund. Environmental, Social and Governance characteristics are integrated into our investment process. The fund aims to provide a Gross Return1 above the return of the Bloomberg NZBond Swaps 1–3 Year Index on a rolling three-year basis.Full Mercer Mercer Macquarie NZ Short Duration Fund profile →
Smartshares
Smart NZ Bond ETF
The Smart NZ Bond ETF is designed to provide a return (before tax, fees and other expenses) that outperforms the S&P/NZX A-Grade Corporate Bond Total Return Index over rolling three-year periods.Full Smartshares Smart NZ Bond ETF profile →
Documents
Crawled directly from each manager's website. How we record provenance →
Smartshares
Common questions
What's the difference between the Mercer Macquarie NZ Short Duration Fund and the Smart NZ Bond ETF?
Which fund has lower fees, Mercer Macquarie NZ Short Duration Fund or Smart NZ Bond ETF?
How do the 5-year returns compare?
Are both funds PIE-taxed in NZ?
Where can I read the official documents for these funds?
