Fund-vs-fund · NZ Fixed Interest
Milford Trans-Tasman Bond Fund vs Simplicity NZ Bond Fund
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 cost. Milford Trans-Tasman Bond Fund discloses an annual fund charge of 0.65%, while Simplicity NZ Bond Fund charges 0.10% — a six-and-a-half-times difference that compounds directly against net returns in a low-yielding fixed interest category.
Despite the higher fee, Milford's five-year return of 1.66% per annum compares favourably to Simplicity's 0.53% over the same period, though past returns are not a reliable indicator of future performance and the gap in fees will form part of any ongoing performance drag. Fund size also differs materially: Milford's fund holds approximately NZD 2.14 billion in assets versus Simplicity's NZD 674 million.
The risk indicators move in an unexpected direction given the category: Milford sits at 3 (on a 1–7 scale) while Simplicity is rated 4, suggesting Simplicity's portfolio carries slightly higher volatility as measured under the standard FMA methodology. Both are predominantly income-asset funds — Milford holds 0.13% growth assets, Simplicity 0.07%.
Portfolio composition also diverges. Milford's top holdings concentrate in NZ Local Government Funding Agency and Housing New Zealand bonds, indicating a tilt toward government-related but non-sovereign issuers. Simplicity's largest positions are direct New Zealand government bonds alongside a Westpac floating-rate note and an IBRD supranational bond, reflecting a more sovereign and supranational-weighted construction.
Verify all figures against each fund's current Product Disclosure Statement and latest Quarterly Fund Update on FMA Disclose before relying on this summary.
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
- Simplicity NZ Bond Fund charges 0.55% lower in annual fund charges (0.10% vs 0.65%).
- Both are New Zealand PIE funds — investor tax is capped at the Prescribed Investor Rate (PIR), maximum 28%.
- Milford Trans-Tasman Bond Fund is roughly 3.2× the size of the other fund.
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
Milford
0.65%
Upper half of cohort
Simplicity
0.10%
Lowest 4% of cohort
5-year return p.a.
Past performance — not a predictor
Milford
1.66%
Top 12% over 5 years
Simplicity
0.53%
Bottom 4% over 5 years
Fund size
Larger = more stable, lower close-risk
Milford
NZ$2.14b
Largest 4% in cohort
Simplicity
NZ$674m
Largest 11% in cohort
| Metric | Milford | Simplicity | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.65% | 0.10% | Lower is better |
| Risk indicator (1–7) | 3 | 4 | Higher = more volatility |
| 5-year return p.a. | 1.66% | 0.53% | Higher is better (past not future) |
| Fund size | NZ$2.14b | NZ$674m | 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 Trans-Tasman Bond Fund
The Fund's objective is to generate a positive, low volatility 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 trans-Tasman fixed interest securities.Full Milford Milford Trans-Tasman Bond Fund profile →
Simplicity
Simplicity NZ Bond Fund
The NZ Bond Fund invests in New Zealand government bonds and investment grade, liquid bonds issued in New Zealand dollars, designed to be the New Zealand bond component of a diversified investment portfolio.Full Simplicity Simplicity NZ Bond Fund profile →
Common questions
What's the difference between the Milford Trans-Tasman Bond Fund and the Simplicity NZ Bond Fund?
Which fund has lower fees, Milford Trans-Tasman Bond Fund or Simplicity NZ Bond 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?
