Fund-vs-fund · NZ Fixed Interest
NZ Funds New Zealand and Australian Bonds vs Russell Investments NZ Fixed Interest 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 fee level. The Russell Investments NZ Fixed Interest Fund charges 0.49% per annum, while the NZ Funds New Zealand and Australian Bonds fund charges 1.44% — a gap of 0.95 percentage points that compounds meaningfully over time in a low-return asset class.
Risk profile also diverges. Russell carries a risk indicator of 3 (out of 7) versus NZ Funds' indicator of 4, suggesting modestly greater return volatility in the NZ Funds portfolio. Despite that higher risk rating, NZ Funds reports a five-year annualised return of 0.97% compared with Russell's 0.54% — a difference of 0.43 percentage points before tax, though both figures are low in absolute terms and reflect the challenging rate environment across the period.
Portfolio construction differs in character. Russell's top holdings are concentrated in New Zealand Government Bonds — sovereign debt across maturities from 2027 to 2033 — giving the portfolio a strong government-credit tilt. NZ Funds' largest exposures are to bank-issued instruments, including short-dated bank bills and longer-dated bank bonds from Westpac, ANZ, Bank of New Zealand, and Kiwibank, one of which is a perpetual instrument, indicating a different credit and duration profile.
Both funds are similar in size (Russell at approximately NZD 161 million; NZ Funds at approximately NZD 145 million) and both hold minimal growth assets (0.13% and 0.07% respectively). Neither fund is linked to a KiwiSaver scheme account in the data provided.
Verify all figures against each fund's current Product Disclosure Statement and latest Quarterly Fund Update on FMA Disclose before relying on this comparison.
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
- Russell Investments NZ Fixed Interest Fund charges 0.95% lower in annual fund charges (0.49% 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 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
NZ Funds
1.44%
Highest 4% of cohort
Russell Investments
0.49%
Lower half of cohort
5-year return p.a.
Past performance — not a predictor
NZ Funds
0.97%
Lower half over 5 years
Russell Investments
0.85%
Lower half over 5 years
Fund size
Larger = more stable, lower close-risk
NZ Funds
NZ$145m
Lower half by size
Russell Investments
NZ$158m
Upper half by size
| Metric | NZ Funds | Russell Investments | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 1.44% | 0.49% | Lower is better |
| Risk indicator (1–7) | 4 | 3 | Higher = more volatility |
| 5-year return p.a. | 0.97% | 0.85% | Higher is better (past not future) |
| Fund size | NZ$145m | NZ$158m | 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 | 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 New Zealand and Australian Bonds
The objective of the New Zealand and Australian 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 New Zealand and Australian bonds over the minimum suggested timeframe.Full NZ Funds NZ Funds New Zealand and Australian Bonds profile →
Russell Investments
Russell Investments NZ Fixed Interest Fund
The underlying investment exposure is typically comprised of government fixed income securities, bank bills and cash equivalents, and securities issued by local authorities, semi-government organisations, and corporations, as well as to mortgage backed and asset backed securities. The underlying investment portfolio may from time to time be exposed to low grade or unrated debt securities to a limited extent, and derivatives. The fund also has the ability to invest in the Australian fixed income market either through Australian dollar denominated debt securities orFull Russell Investments Russell Investments NZ Fixed Interest Fund profile →
Common questions
What's the difference between the NZ Funds New Zealand and Australian Bonds and the Russell Investments NZ Fixed Interest Fund?
Which fund has lower fees, NZ Funds New Zealand and Australian Bonds or Russell Investments NZ 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?
