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 risk and cost. The NZ Funds New Zealand and Australian Bonds fund carries a risk indicator of 4, compared to 3 for the Russell Investments NZ Fixed Interest Fund, meaning NZ Funds discloses a wider expected range of returns. Alongside that higher risk sits a substantially higher annual fund charge: 1.44% versus Russell's 0.49% — a gap of 95 basis points on funds of broadly similar size (NZ$145m versus NZ$158m) and an identical growth assets allocation of 0.07%.
The five-year return figures are close — 0.97% per annum for NZ Funds against 0.85% for Russell — though neither figure is strong in absolute terms and past returns do not indicate future performance. Portfolio composition differs meaningfully: Russell's top holdings are concentrated in New Zealand Government Bonds (NZGBs), with the five largest positions all sovereign debt totalling roughly 30% of the fund. NZ Funds' top five positions are dominated by bank-issued instruments — Westpac, ANZ, BNZ and Kiwibank — reflecting the fund's Australian bank and domestic financial-sector exposure implied by its name.
Both funds sit in the NZ Fixed Interest category and both are not KiwiSaver scheme accounts. Note that the PDS URLs in this snapshot reference different series documents (Russell's links to a Sustainable Global Shares document; NZ Funds' to an Active Growth Series document), which may indicate a data linkage issue worth checking.
Always verify all figures against each fund's current PDS and latest Quarterly Fund Update on FMA Disclose before relying on this summary.
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
- 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 | 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 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?
