Fund-vs-fund · International FI
NZ Funds Global Bonds vs Smart Global Bond ETF
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 fee level relative to delivered return. Smart Global Bond ETF charges an annual fund charge of 0.54%, while NZ Funds Global Bonds charges 1.44% — a gap of 90 basis points. Over the five-year period captured in each fund's latest Quarterly Fund Update, Smart Global Bond ETF returned 0.23% per annum against NZ Funds Global Bonds' 0.17%, meaning the higher-fee fund produced a lower net return across the same timeframe, though both figures are modest in absolute terms.
The two funds also differ meaningfully in portfolio construction despite sharing an International Fixed Income category. Smart Global Bond ETF's top holdings are sovereign and agency bonds — US Treasuries, French OATs, UK Gilts, Italian BTPs, and a Freddie Mac mortgage pool — spread across multiple geographies, consistent with a passive or rules-based international bond mandate. NZ Funds Global Bonds' top five holdings are entirely short-dated New Zealand bank bills (Westpac and BNZ), which collectively represent over 51% of disclosed portfolio weight; this suggests a materially different interest-rate and credit profile than the fund's "Global Bonds" label might imply.
Risk indicators diverge slightly: Smart Global Bond ETF sits at indicator 3 on the standard 1–7 scale; NZ Funds Global Bonds sits at 4. Fund sizes are comparable — approximately NZD 147.2 million and NZD 137.1 million respectively. Growth asset allocations are low for both (0.13% and 0.07%).
Always verify these details 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
- Smart Global Bond ETF charges 0.90% lower in annual fund charges (0.54% vs 1.44%).
- 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
NZ Funds
1.44%
Highest 8% of cohort
Smartshares
0.54%
Lower half of cohort
5-year return p.a.
Past performance — not a predictor
NZ Funds
0.17%
Bottom 17% over 5 years
Smartshares
0.08%
Bottom 10% over 5 years
Fund size
Larger = more stable, lower close-risk
NZ Funds
NZ$137m
Lower half by size
Smartshares
NZ$141m
Upper half by size
| Metric | NZ Funds | Smartshares | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 1.44% | 0.54% | Lower is better |
| Risk indicator (1–7) | 4 | 4 | Higher = more volatility |
| 5-year return p.a. | 0.17% | 0.08% | Higher is better (past not future) |
| Fund size | NZ$137m | NZ$141m | 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 | InvestNow · Sharesies · 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
NZ Funds
NZ Funds Global Bonds
The objective of the Global Bonds fund is to generate gains by investing in income assets and other authorised assets with active management. The fund is anticipated to mainly own and trade international bonds over the minimum suggested timeframe.Full NZ Funds NZ Funds Global Bonds profile →
Smartshares
Smart Global Bond ETF
The Smart Global Bond ETF is designed to provide a return (before tax, fees and other expenses) that outperforms the Bloomberg Global Aggregate Total Return Index Hedged NZD by 1% per annum over rolling three-year periods. The investment manager is PIMCO Australia Pty Ltd. The currency exposure is hedged to the New Zealand dollar.Full Smartshares Smart Global Bond ETF profile →
Common questions
What's the difference between the NZ Funds Global Bonds and the Smart Global Bond ETF?
Which fund has lower fees, NZ Funds Global Bonds or Smart Global Bond ETF?
How do the 5-year returns compare?
Are both funds PIE-taxed in NZ?
Where can I read the official documents for these funds?
