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 cost: 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 that compounds materially over time on otherwise similar mandates. Both funds sit in the International Fixed Income category, carry a risk indicator of 4 out of 7, and report identical growth asset allocations of 0.07%, so their headline risk profile and asset-class positioning appear closely matched.
Where they diverge most visibly beyond fees is portfolio composition. Smartshares' fund holds diversified sovereign and agency bonds across multiple countries — US mortgage-backed securities (Freddie Mac, Ginnie Mae), French and UK government bonds, and Chinese development bank debt — consistent with a passive or index-tracking approach to global fixed income. NZ Funds Global Bonds concentrates its top five holdings almost entirely in short-dated New Zealand bank bills (Westpac and BNZ instruments maturing in mid-2026), which together account for over 51% of disclosed weight. Despite the "Global Bonds" label, this snapshot suggests a substantially more domestically oriented and shorter-duration positioning at the time of reporting.
On five-year returns, NZ Funds Global Bonds returned 0.17% annualised against Smartshares' 0.08%, though the difference is small in absolute terms and neither figure accounts for fees paid. Both funds are similarly sized at approximately NZD 137–141 million.
Verify all figures against each fund's current Product Disclosure Statement and latest Quarterly Fund Update on FMA Disclose before relying on this comparison.
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
- 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 | 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?
