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 charges an annual fund fee of 0.65%, while Simplicity NZ Bond Fund charges 0.10% — a six-and-a-half-times difference that compounds meaningfully over time in a low-return asset class. Both funds sit in the NZ Fixed Interest category and report identical growth asset allocations of 0.07%, so the divergence in fees and returns is not explained by a material difference in asset mix.
Risk indicator scores differ by one band: Milford sits at 3 (lower) and Simplicity at 4 (moderate) on the standard 1–7 scale, suggesting Simplicity carries somewhat greater return volatility despite its lower fee. Milford's five-year return is reported at 1.66% per annum versus Simplicity's 0.53%, though the fee differential accounts for a portion of that gap and past performance is not a reliable indicator of future returns.
The funds' top holdings reveal different credit postures. Milford's largest positions are New Zealand Local Government Funding Agency and Housing New Zealand bonds — Crown-related but not direct sovereign debt. Simplicity's portfolio leads with New Zealand government bonds and includes a Westpac NZ floating-rate note and an IBRD supranational bond, pointing to a more index-oriented sovereign and high-grade structure.
Fund size also differs: Milford at approximately NZD 2.14 billion versus Simplicity at approximately NZD 674 million, which may affect liquidity and operational scale.
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 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
- 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?
