Fund-vs-fund · International FI
Mercer Responsible Hedged Global Fixed Interest Index Fund vs Milford Global Corporate Bond Fund
Both are International FI 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 approach to credit exposure. The Mercer Responsible Hedged Global Fixed Interest Index Fund allocates its largest position — nearly 12% — to the iShares MBS ETF, with remaining disclosed holdings concentrated in US Treasury bonds, signalling a government and agency-heavy, index-replicating strategy. The Milford Global Corporate Bond Fund, by contrast, holds its top five positions entirely in investment-grade corporate and financial institution bonds from issuers including Bank of America, T-Mobile USA, and Barclays, reflecting an actively managed credit selection mandate.
This difference in credit risk profile coincides with a divergence in FMA risk indicator ratings: Mercer sits at 4 (higher volatility), while Milford sits at 3 (lower volatility) — notable given both funds report identical growth asset allocations of 0.13%. Mercer's hedged structure likely introduces currency derivative activity that contributes to its higher indicator reading.
On fees, Mercer charges 0.43% annually versus Milford's 0.85% — a 42-basis-point gap that compounds materially over time. Milford's five-year return of 1.26% per annum outpaces Mercer's 0.48% over the same period, though past performance does not indicate future returns. Fund sizes are comparable: Mercer at approximately NZD 382 million and Milford at approximately NZD 407 million.
Both funds are available as retail managed fund investments outside any KiwiSaver scheme account structure. Verify all figures against each fund's current PDS and latest Quarterly Fund Update on FMA Disclose before relying on this comparison.
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
- Mercer Responsible Hedged Global Fixed Interest Index Fund charges 0.42% lower in annual fund charges (0.43% vs 0.85%).
- Both are New Zealand PIE funds — investor tax is capped at the Prescribed Investor Rate (PIR), maximum 28%.
- Mercer Responsible Hedged Global Fixed Interest Index Fund applies responsible-investment / ESG screening. The other fund does not.
Where each fund sits in its cohort
Percentile rank vs all 31 international fi funds we've matched on Sorted Smart Investor. Mechanical only — no opinion, no forward-looking view.
Annual fund charge
Lower is better
Mercer
0.43%
Lower half of cohort
Milford
0.85%
Upper half of cohort
5-year return p.a.
Past performance — not a predictor
Mercer
0.48%
Upper half over 5 years
Milford
1.26%
Upper half over 5 years
Fund size
Larger = more stable, lower close-risk
Mercer
NZ$382m
Largest 21% in cohort
Milford
NZ$407m
Largest 18% in cohort
| Metric | Mercer | Milford | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.43% | 0.85% | Lower is better |
| Risk indicator (1–7) | 4 | 3 | Higher = more volatility |
| 5-year return p.a. | 0.48% | 1.26% | Higher is better (past not future) |
| Fund size | NZ$382m | NZ$407m | 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 to NZD | — | 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 Hedged Global Fixed Interest Index Fund
The fund is a passively managed international fixed interest portfolio that is designed to track the return of the Bloomberg MSCI Global Aggregate SRI Select ex-Fossil Fuels Index. The fund is managed to include specific additional responsible exclusions criteria which aims to avoid investments in certain companies or activities, and is managed with reference to environmental, social and governance factors. This fund has additional exclusions applied as described in our Sustainable Investment Policy and has been certified by the Responsible Investment AssociationFull Mercer Mercer Responsible Hedged Global Fixed Interest Index Fund profile →
Milford
Milford Global Corporate Bond Fund
The Fund's objective is to protect capital and generate a positive NZD-hedged return after the base fund fee but before tax, that exceeds the relevant benchmark over the minimum recommended investment timeframe of three years. It primarily invests in global corporate fixed interest securities.Full Milford Milford Global Corporate Bond Fund profile →
Documents
Crawled directly from each manager's website. How we record provenance →
Milford
Common questions
What's the difference between the Mercer Responsible Hedged Global Fixed Interest Index Fund and the Milford Global Corporate Bond Fund?
Which fund has lower fees, Mercer Responsible Hedged Global Fixed Interest Index Fund or Milford Global Corporate Bond 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?
