Mercer Macquarie NZ Short Duration Fund
Managed by Mercer Mercer Macquarie NZ Short Duration Fund is a nz fixed interest managed fund operated by Mercer; PIE-structured; FMA risk indicator 2/7. Headline terms: annual fund charge 0.66% · distributions semi-annually. Compared with 13 other same-category funds on this site, the 0.66% annual fund charge sits above the same-category median of 0.60%.
PIE tax treatment — capped at your PIR (max 28%)
This fund is a Portfolio Investment Entity (PIE) under Subpart HM of the Income Tax Act 2007. Income is taxed at your Prescribed Investor Rate (10.5% / 17.5% / 28%), not your marginal income-tax rate. The fund manager calculates and pays the tax on your behalf — when your PIR is correct, you usually don't need to declare PIE income in your annual tax return. See our PIR guide and PIE tax basics for the full picture, or use the PIR calculator to confirm your rate.
Annual fund charge
0.68%
vs peer avg 0.65%
Risk indicator
2/7
1 = lower risk · 7 = higher risk
5-year return p.a.
1.87%
peer avg 1.17%
Fund size
NZ$47.0m
0% growth · 100% income
To provide a Gross Return above the return of the Bloomberg NZBond Swaps 1–3 Year Index on a rolling three-year basis.
Benchmark track record
Compare NZ Fixed Interest consistency →How Mercer Macquarie NZ Short Duration Fund performed against its own market-index benchmark each year, after fees and tax — from the FMA fund-update dataset. Historical track record, not current-year performance; past performance is not a guide to the future.
Beat its benchmark in 4 of 13 years
annual returns to 31 March 2026Since inception: 2.5% p.a. after fees & tax vs benchmark 2.92%.
How Mercer Macquarie NZ Short Duration Fund differs
Factual contrasts drawn from the PDS, SIPO and latest portfolio holdings — no opinion.
- Benchmark
- Bloomberg NZBond Swaps 1–3 Year Index
- Top 3 holdings
- Corporate Bond (3.4%) · Corporate Bond (3.1%) · Corporate Bond (3.0%)
Key facts
Fund start date
28 September 2007
Distributions
Semi-annually
Buy / sell spread
5 bps (0.05%) / 5 bps (0.05%)
Transaction cost on subscription / redemption
Tax structure
PIE
Capped at your PIR (max 28%)
Investment policy
From the Statement of Investment Policy and Objectives (SIPO).
Strategic asset allocation ranges
| Asset class | Target | Min | Max |
|---|---|---|---|
| New Zealand fixed interest - NZ issued securities (corporate, SOE, local authority, government bonds) | — | 0% | 100% |
| New Zealand fixed interest - Mortgage and other asset-backed bonds | — | 0% | 25% |
| New Zealand fixed interest - On call NZ cash, short-term securities and term deposits | — | 0% | 100% |
| New Zealand fixed interest - Local Government Funding Authority | — | 0% | 50% |
| New Zealand fixed interest (total) | 100% | — | — |
| International Fixed Interest | 0% | 0% | 30% |
Responsible-investment approach
Mercer applies a Sustainable Investment Policy incorporating four techniques: ESG integration, stewardship (engagement and proxy voting), exclusions (rules-based screens covering controversial weapons, tobacco, Russian assets, and additional responsible/sustainable criteria for labelled funds), and investment in sustainability themes. Funds labelled 'Responsible' have additional exclusions criteria applied and are certified by the Responsible Investment Association of Australasia (RIAA).
Exclusions
- Collateralised debt obligations
- Collateralised loan obligations
- Securities rated lower than BBB- (S&P or equivalent)
- Unrated securities (except qualifying local authority securities rated A- or higher by Manager)
Derivatives policy
Funds (including underlying managers) may use derivatives to protect against unfavourable price changes, enhance returns as a cost-effective alternative to purchasing physical assets, implement fund investment objectives, and manage currency exposure. Derivatives related to each asset class are permitted provided the total market value exposure remains within permitted asset allocation ranges.
Reading between the lines
Plain-English summary of the scheme's disclosed conflicts and performance-fee mechanics, drawn from the OMI and PDS. Factual restatement — no opinion.
- Mercer acknowledges that acting simultaneously as manager, consultant, and product manufacturer — for both the fund and other clients — creates inherent conflicts of interest that it is required to resolve in favour of clients and beneficiaries.
- Mercer (N.Z.) Limited pays undisclosed fees to at least five related Marsh McLennan group entities for services including investment management, consulting, fund administration, and technology — meaning fund costs flow to related parties whose fee amounts are not specified in the OMI.
- Mercer has a disclosed process with the Supervisor for identifying and managing related-party transactions as required under the Financial Markets Conduct Act, including escalation to the Mercer Board Chair if key conflict officers are themselves conflicted.
- No performance-fee mechanic is disclosed in the provided OMI or PDS extracts for this scheme.
Generated 2026-05-28 from Mercer Investment Funds OMI (dated 2026-03-22). The verbatim disclosures appear in full below — this summary is a navigation aid, not a substitute.
Scheme disclosures
From the Other Material Information (OMI) document. Scheme-level — applies to every fund in this scheme.
Trustee / Supervisor
The New Zealand Guardian Trust Company Limited
Custodian
BNP Paribas Fund Services Australasia Pty Ltd (trading as BNP Paribas Securities Services)
Conflicts disclosed
6
In OMI
Conflicts of interest disclosed in OMI
- Mercer and/or a related party may be acting as manager, consultant and/or product manufacturer to each other and to clients and customers simultaneously, creating inherent conflicts of interest.
- As a local entity offering a range of financial products and services and as part of a global organisation, Mercer may from time to time have interests which conflict with the interests of its clients and customers.
- Conflicts may also arise between one client or customer and another client or customer of Mercer.
- Mercer must resolve conflicts in favour of clients/beneficiaries where conflicts arise between clients/beneficiaries and Mercer or Mercer Colleagues.
- The Conflicts Officer is responsible for assessing and managing conflicts, but if the CRCO, CLC or Conflicts Officer are themselves conflicted, the matter must be escalated to the Chair of the Mercer Board.
- Mercer has a process with the Supervisor for identifying, notifying and certifying or obtaining consent for related party transactions as required by the FMC Act.
How this fund compares to peers
Mechanical comparison vs the 14 other nz fixed interest funds in our cohort. Source: FMA Disclose register via Sorted Smart Investor. Past performance is not a reliable indicator of future returns.
Annual fund charge
0.68%
Category median: 0.63%
Mid-pack — cheaper than 32% of peers
5y return p.a. (after fees)
+1.87%
Category median: +1.13%
Higher than 96% of peers
Fund size
NZ$47.0m
Category median: NZ$151.2m
25th percentile by AUM
Illustrative 5y fee impact on a sample balance of $10,000
$335
Compounded charge over 5 years (excl. returns)
$27 more than peer median
Read the full fee-vs-peers breakdown →
Mechanical scores only — no opinion or recommendation. Different funds suit different investor goals. ManagedFundsNZ is not a Financial Advice Provider. Read the current PDS and consider speaking to a licensed financial adviser.
Top 6 holdings
| Holding | % of fund |
|---|---|
| CB Corporate Bond | 3.38% |
| CB Corporate Bond | 3.14% |
| CB Corporate Bond | 3.03% |
| FA Funding Agency Bond | 3.01% |
| ? Limited | 2.69% |
| 10 10 | 2.40% |
Documents
Also via Sorted Smart Investor
FMA Disclose mirrors and historical files from Sorted.
- MERCER MACQUARIE NZ SHORT DURATION FUND (FND80) Full portfolio holdings 31 March 2026.xlsx Download the full portfolio holdings. XLSX, 3.50 KB
- Mercer Investment Funds PDS Multi Asset Class Funds.pdf How this investment works, including about the provider, risks, costs and potential returns PDF, 352.72 KB
- Mercer Macquarie NZ Short Duration Fund Fund Update 31 March 2026.pdf The quarterly update published by the provider PDF, 42.40 KB
- Mercer Investment Funds PDS–Index Funds.pdf Additional product disclosure statement from the provider PDF, 681.43 KB
- Mercer Investment Funds PDS Cash and Fixed Interest Funds.pdf Additional product disclosure statement from the provider PDF, 881.97 KB
- Mercer Investment Funds PDS Global Shares Funds.pdf Additional product disclosure statement from the provider PDF, 370.05 KB
- Mercer Investment Funds PDS–Goals Based Funds.pdf Additional product disclosure statement from the provider PDF, 801.97 KB
- Mercer Investment Funds PDS NZ and Australian Shares Funds.pdf Additional product disclosure statement from the provider PDF, 1.56 MB
- Mercer Investment Funds PDS Property and Infrastructure Funds.pdf Additional product disclosure statement from the provider PDF, 3.53 MB
- PDS Global Companies Fund 16.10.18.pdf Additional product disclosure statement from the provider PDF, 315.16 KB
- Mercer NZ Sustainable Investment Policy.pdf Mercer NZ - Sustainable Investment Policy PDF, 1.08 MB
- Mercer Investment Funds OMI 23 March 2026.pdf Other material information document PDF, 689.04 KB
- Mercer Investment Funds SIPO 23 March 2026.pdf Statement of investment policy and objectives PDF, 708.56 KB
About this category
Funds investing in New Zealand-issued government and corporate bonds. Generally lower-risk than equity funds; income-focused.
About Mercer
Global wealth and consulting firm with a passive-leaning multi-asset fund range in NZ.
See all funds from Mercer →Common questions
Questions people ask about Mercer Macquarie NZ Short Duration Fund
Drawn from Google's "People also ask" panel and answered with reference to the fund's filed PDS, Fund Update and FMA Disclose data. Not personal financial advice — for guidance specific to your situation, consult an authorised financial adviser.
Is ultra short duration fund safe?
This fund is classified at risk indicator 2/7 on the FMA standardised scale, indicating lower volatility typical of short-duration fixed-interest funds. However, all investments carry some risk; you should read the Product Disclosure Statement and check the FMA Disclose register at https://disclose-register.companiesoffice.govt.nz/ for full details on how this fund manages interest-rate and credit risk.
What is the difference between short duration fund and low duration fund?
Duration measures how sensitive a bond fund is to interest-rate changes; shorter duration means lower interest-rate risk but typically lower yields. This fund's asset mix of ~0.13% growth assets and 99.87% income assets, with holdings concentrated in shorter-dated government and corporate bonds, reflects a short-duration strategy designed to limit capital fluctuation in a rising-rate environment.
Where can I get a 10% return on my money?
This fund's 5-year after-fees, pre-tax return was 1.87% p.a. as at the latest QFU; returns vary by fund type and market conditions, and past performance does not indicate future returns. For information on returns across different fund categories and risk profiles, visit the FMA Disclose register or consult a financial adviser.
Head-to-head
Compare Mercer Macquarie NZ Short Duration Fund with…
Side-by-side numbers — fees, returns, risk, fund size, asset mix.
Peer funds
Other NZ Fixed Interest funds
Same manager
Other funds by Mercer
- Mercer Responsible Hedged Global Fixed Interest Index FundInternational FI
- Mercer Macquarie NZ Fixed Interest FundNZ Fixed Interest
- Mercer All Country Global Shares Index FundInternational Equities
FMA risk band
Same risk band (2/7)
See every NZ retail managed fund with the same standardised FMA risk indicator. Useful for peer-checking volatility-comparable funds outside this category.
View risk band 2 funds →AI & integrations
Use this fund inside the tools you already use
Every fund on ManagedFundsNZ ships in three formats so AI assistants and data tools can consume it without scraping: a canonical HTML page, a plain Markdown twin, and a structured JSON twin. Citation back to the canonical URL is required; full reuse policy at /llms-policy.txt.
- Canonical (HTML)managedfunds.nz/funds/mercer/macquarie-nz-short-duration/This page. Browsable.
- Markdown twinmanagedfunds.nz/funds/mercer/macquarie-nz-short-duration/markdown.mdPlain text. AI-crawler-ready.
- Structured (JSON)managedfunds.nz/funds/mercer/macquarie-nz-short-duration/data.jsonMachine-parseable.
Frequently asked questions
Mechanical Q&A grounded in the fund's PDS, SIPO, and latest QFU on the FMA Disclose register. Verify against the source before relying on any of this.
Who manages the Mercer Macquarie NZ Short Duration Fund?
Mercer Macquarie NZ Short Duration Fund is managed by Mercer. Global wealth and consulting firm with a passive-leaning multi-asset fund range in NZ.
What asset class is the Mercer Macquarie NZ Short Duration Fund?
It is a nz fixed interest managed fund. Funds investing in New Zealand-issued government and corporate bonds. Generally lower-risk than equity funds; income-focused.
What are the fees for the Mercer Macquarie NZ Short Duration Fund?
The annual fund charge for the Mercer Macquarie NZ Short Duration Fund is 0.68% p.a., as reported in the latest Quarterly Fund Update sourced from the FMA Disclose register. Always check the current PDS for any additional fees.
What is the risk indicator for the Mercer Macquarie NZ Short Duration Fund?
The risk indicator is 2/7 on the standardised FMA-mandated scale, where 1 is lower risk and 7 is higher risk. The risk indicator is calculated from the fund's price volatility over the past five years and is published in every Quarterly Fund Update.
Is the Mercer Macquarie NZ Short Duration Fund a PIE fund?
Yes. The Mercer Macquarie NZ Short Duration Fund is structured as a New Zealand Portfolio Investment Entity (PIE). Investor tax on the fund's income is capped at the investor's Prescribed Investor Rate (PIR), which has a maximum of 28%. Most NZ-resident retail investors with a taxable income at or below NZ$48,000 qualify for a lower PIR.
How big is the Mercer Macquarie NZ Short Duration Fund?
Fund size (assets under management) is NZ$47 million as at the latest Quarterly Fund Update. Asset mix is approximately 0% growth assets and 100% income assets.
What does the Mercer Macquarie NZ Short Duration Fund invest in?
The latest published top holdings are: New Zealand Government Bond 3.00% 20/04/2029 (6.58%), New Zealand Government Bond 4.50% 15/05/2030 (4.98%), ANZ Bank of New Zealand Corporate Bond 2.999% 17/09/2031 (3.38%). Holdings are disclosed in each Quarterly Fund Update; the full portfolio holdings file is also available via the FMA Disclose register.
How can I invest in the Mercer Macquarie NZ Short Duration Fund?
The Mercer Macquarie NZ Short Duration Fund is available via Mercer directly. Always read the current Product Disclosure Statement before investing.
Is ultra short duration fund safe?
This fund is classified at risk indicator 2/7 on the FMA standardised scale, indicating lower volatility typical of short-duration fixed-interest funds. However, all investments carry some risk; you should read the Product Disclosure Statement and check the FMA Disclose register at https://disclose-register.companiesoffice.govt.nz/ for full details on how this fund manages interest-rate and credit risk.
What is the difference between short duration fund and low duration fund?
Duration measures how sensitive a bond fund is to interest-rate changes; shorter duration means lower interest-rate risk but typically lower yields. This fund's asset mix of ~0.13% growth assets and 99.87% income assets, with holdings concentrated in shorter-dated government and corporate bonds, reflects a short-duration strategy designed to limit capital fluctuation in a rising-rate environment.
Where can I get a 10% return on my money?
This fund's 5-year after-fees, pre-tax return was 1.87% p.a. as at the latest QFU; returns vary by fund type and market conditions, and past performance does not indicate future returns. For information on returns across different fund categories and risk profiles, visit the FMA Disclose register or consult a financial adviser.