Fund-vs-fund · International FI
Milford Global Corporate Bond Fund vs Russell Investments Global Fixed Interest 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 risk profile relative to fee and return outcomes. The Milford Global Corporate Bond Fund carries a risk indicator of 3, while the Russell Investments Global Fixed Interest Fund sits at risk indicator 4 — meaning Russell's fund is classified as carrying meaningfully higher volatility on the FMA's standardised seven-point scale, despite both funds allocating an identical 7% to growth assets. This divergence likely reflects differences in underlying duration, credit exposure, or hedging strategy rather than asset-class allocation alone.
On fees, Milford charges 0.85% per annum versus Russell's 0.58%, a 27-basis-point gap. Over the trailing five years, Milford's fund returned 1.26% per annum against Russell's 0.34% — though past returns are not indicative of future performance, and the difference in risk rating complicates a direct comparison. Fund size differs modestly: Russell's fund holds approximately NZD 564 million, Milford's approximately NZD 407 million.
Portfolio construction diverges notably. Russell's top holdings are dominated by US Treasuries and cash-like positions, with no single named corporate bond in the top five; Milford's top holdings are identifiable investment-grade corporate bonds — Goodman, Bank of America, T-Mobile, Barclays, and Permanent TSB — with the largest position at 4.38%, suggesting a more concentrated, credit-oriented strategy.
Neither fund is a KiwiSaver scheme account product based on the data provided. Readers should verify all figures against each fund's current Product Disclosure Statement and latest Quarterly Fund Update on FMA Disclose before relying on any information 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
- Russell Investments Global Fixed Interest Fund charges 0.27% lower in annual fund charges (0.58% vs 0.85%).
- 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 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
Milford
0.85%
Upper half of cohort
Russell Investments
0.58%
Lower half of cohort
5-year return p.a.
Past performance — not a predictor
Milford
1.26%
Upper half over 5 years
Russell Investments
0.34%
Lower half over 5 years
Fund size
Larger = more stable, lower close-risk
Milford
NZ$407m
Largest 18% in cohort
Russell Investments
NZ$564m
Largest 11% in cohort
| Metric | Milford | Russell Investments | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.85% | 0.58% | Lower is better |
| Risk indicator (1–7) | 3 | 4 | Higher = more volatility |
| 5-year return p.a. | 1.26% | 0.34% | Higher is better (past not future) |
| Fund size | NZ$407m | NZ$564m | 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
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 →
Russell Investments
Russell Investments Global Fixed Interest Fund
The underlying investment exposure is predominantly to debt securities issued by supranationals, international governments, quasi-government agencies and corporates as well as structured credit securities including mortgage-backed and asset backed securities. The underlying investment portfolio may also be exposed to low grade or unrated debt securities, emerging market securities and currency. The Fund employs certain investment exclusions, please refer to the SIPO for further details. Derivatives may be used to obtain or reduce exposure to securities and marketsFull Russell Investments Russell Investments Global Fixed Interest Fund profile →
Common questions
What's the difference between the Milford Global Corporate Bond Fund and the Russell Investments Global Fixed Interest Fund?
Which fund has lower fees, Milford Global Corporate Bond Fund or Russell Investments Global 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?
