Fund-vs-fund · Diversified
Mercer Responsible Balanced Fund vs NZ Funds Wealth Builder - Inflation Strategy
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.
Why these two differ
The most material structural difference between these two funds is their growth asset allocation and corresponding risk profile. The NZ Funds Wealth Builder – Inflation Strategy holds 78.48% in growth assets and carries a risk indicator of 5, while the Mercer Responsible Balanced Fund holds 53.15% in growth assets with a risk indicator of 4. Both sit within the FMA's "Diversified" category, but this gap in equity exposure meaningfully distinguishes their volatility profiles and intended investor positioning.
On fees, NZ Funds charges 1.58% annually versus Mercer's 1.25%, a 33 basis point difference that compounds over time. Despite carrying higher growth exposure and higher fees, NZ Funds Wealth Builder – Inflation Strategy returned 2.27% per annum over five years against Mercer's 3.52% over the same period, though past returns are not a reliable indicator of future performance. Fund sizes are comparable: Mercer at approximately NZD 28.4 million and NZ Funds at NZD 23.0 million.
The portfolios reflect distinct philosophies. Mercer's top holdings are globally diversified across technology and healthcare equities — Nvidia, Apple, Microsoft, Fisher & Paykel, and Infratil — consistent with its responsible investment mandate. NZ Funds' top positions are concentrated in Australasian infrastructure and utilities — Telstra, Chorus, Contact Energy, and Mercury NZ — alongside a cash position at Westpac, which aligns with an inflation-hedging strategy framing.
Neither fund is a KiwiSaver scheme account based on the available data; confirm the fund structure via each fund's PDS before drawing that distinction.
Always verify fees, returns, and holdings 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
- Mercer Responsible Balanced Fund charges 0.33% lower in annual fund charges (1.25% vs 1.58%).
- 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 67 diversified funds we've matched on Sorted Smart Investor. Mechanical only — no opinion, no forward-looking view.
Annual fund charge
Lower is better
Mercer
1.25%
Highest 25% of cohort
NZ Funds
1.58%
Highest 5% of cohort
5-year return p.a.
Past performance — not a predictor
Mercer
3.52%
Upper half over 5 years
NZ Funds
2.27%
Lower half over 5 years
Fund size
Larger = more stable, lower close-risk
Mercer
NZ$28m
Lower half by size
NZ Funds
NZ$23m
Lower half by size
| Metric | Mercer | NZ Funds | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 1.25% | 1.58% | Lower is better |
| Risk indicator (1–7) | 4 | 5 | Higher = more volatility |
| 5-year return p.a. | 3.52% | 2.27% | Higher is better (past not future) |
| Fund size | NZ$28m | NZ$23m | Larger = more stable, lower close-risk |
| Growth / income split | 53% / 47% | 78% / 22% | 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 | Yes | 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 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 →
NZ Funds
NZ Funds Wealth Builder - Inflation Strategy
The objective of the NZ Funds Wealth Builder - Inflation Strategy is to mitigate the impact of inflation on your investment over the medium and/or long term. The fund is anticipated to mainly own and trade New Zealand, Australian and international shares over the minimum suggested timeframe.Full NZ Funds NZ Funds Wealth Builder - Inflation Strategy profile →
Documents
Crawled directly from each manager's website. How we record provenance →
NZ Funds
Common questions
What's the difference between the Mercer Responsible Balanced Fund and the NZ Funds Wealth Builder - Inflation Strategy?
Which fund has lower fees, Mercer Responsible Balanced Fund or NZ Funds Wealth Builder - Inflation Strategy?
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?
