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 credit composition and active management approach. The Mercer Responsible Hedged Global Fixed Interest Index Fund tracks an index weighted heavily toward government and agency-backed securities — its largest single holding is the iShares MBS ETF at roughly 12% of the portfolio, with the remainder of disclosed top holdings in US Treasury bonds. The Milford Global Corporate Bond Fund, by contrast, is actively managed with concentrated exposure to investment-grade corporate issuers across financials, real estate, and telecoms, with individual positions ranging from approximately 2.9% to 4.4%.
This structural difference flows through to risk and cost. Mercer carries a risk indicator of 4 versus Milford's 3, reflecting the greater interest rate sensitivity typically associated with longer-duration government and agency bonds. Milford's annual fund charge is 0.85% compared with Mercer's 0.43% — a gap consistent with active versus index management. On the five-year return figure, Milford shows 1.26% per annum against Mercer's 0.48%, though short return windows in fixed income are heavily period-dependent and should not be extrapolated. Both funds report identical growth asset allocations of 0.07% and are similarly sized, at approximately NZD $382 million and NZD $407 million respectively. Neither fund is a KiwiSaver scheme account product based on the data available in this snapshot.
Always verify current fees, returns, and holdings against each fund's product disclosure statement and latest quarterly fund update on FMA Disclose before relying on any figures here.
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 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?
