Mercer NZ Shares Passive Fund is a australasian equities managed fund operated by Mercer; PIE-structured; FMA risk indicator 5/7. Headline terms: annual fund charge 0.49% · distributions semi-annually. Compared with 57 other same-category funds on this site, the 0.49% annual fund charge sits below the same-category median of 1.02%.
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
0.36%
vs peer avg 0.91%
Risk indicator
5/7
1 = lower risk · 7 = higher risk
5-year return p.a.
0.02%
peer avg 4.91%
Fund size
NZ$40.5m
98% growth · 2% income
To provide a return that closely matches the return of the S&P/NZX 50 Index (on a gross basis and including imputation credits).
Benchmark track record
Compare Australasian Equities consistency →How Mercer NZ Shares Passive 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 0 of 7 years
annual returns to 31 March 2026Since inception: 5.92% p.a. after fees & tax vs benchmark 7.23%.
How Mercer NZ Shares Passive Fund differs
Factual contrasts drawn from the PDS, SIPO and latest portfolio holdings — no opinion.
- Investment style
- Index-tracking posture against the S&P/NZX 50 Index.
- Top 3 holdings
- Infratil Limited (8.8%) · Contact Energy Limited (6.6%) · The A2 Milk Company Limited (6.3%)
Key facts
Fund start date
27 November 2017
Distributions
Semi-annually
Buy / sell spread
30 bps (0.30%) / 30 bps (0.30%)
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 |
|---|---|---|---|
| Cash and cash equivalents | 0% | 0% | 5% |
| Australasian equities | 100% | 95% | 100% |
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
- Controversial weapons
- Tobacco
- Russian assets
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 58 other australasian equities 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
0.36%
Category median: 1.01%
Cheaper than 80% of peers
5y return p.a. (after fees)
+0.02%
Category median: +1.68%
Lower than most peers (bottom 4% over period)
Fund size
NZ$40.5m
Category median: NZ$74.1m
35th percentile by AUM
Illustrative 5y fee impact on a sample balance of $10,000
$179
Compounded charge over 5 years (excl. returns)
$316 less 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 8 holdings
| Holding | % of fund |
|---|---|
 Infratil Limited | 8.77% |
 Contact Energy Limited | 6.63% |
 The A2 Milk Company Limited | 6.31% |
 Meridian Energy Limited | 5.39% |
 Mainfreight Limited | 3.60% |
 EBOS Group Limited | 3.44% |
 Mercury NZ Limited | 3.27% |
| 10 10 | 3.07% |
Documents
Also via Sorted Smart Investor
FMA Disclose mirrors and historical files from Sorted.
- MERCER NZ SHARES PASSIVE FUND (FND8205) Full portfolio holdings 31 March 2026.xlsx Download the full portfolio holdings. XLSX, 2.03 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 NZ Shares Passive Fund Fund Update 31 March 2026.pdf The quarterly update published by the provider PDF, 36.94 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 primarily in shares listed on the NZX (New Zealand) or ASX (Australia), or both as Trans-Tasman portfolios. Includes active stock-pickers and passive index trackers.
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 NZ Shares Passive 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.
Do passive funds have fees?
Yes, passive funds charge fees to cover administration and index tracking costs. The Mercer NZ Shares Passive Fund charges an annual fund charge of 0.36% p.a., which is materially lower than the peer-cohort average of 0.95% p.a. for this category.
How much do passive funds cost?
Passive fund fees vary by fund and manager. The Mercer NZ Shares Passive Fund has an annual fund charge of 0.36% p.a., which sits well below the typical peer-cohort average of 0.95% p.a. Check the Product Disclosure Statement or FMA Disclose register for fees on other funds you are comparing.
Is a 7% return realistic?
Past returns are not a reliable indicator of future returns. The Mercer NZ Shares Passive Fund returned 0.02% p.a. after fees (before tax) over the last five years as at the latest Quarterly Fund Update, reflecting the actual performance of NZ shares during that period. Check the FMA Disclose register for the fund's full performance history and PDS for risk information.
Head-to-head
Compare Mercer NZ Shares Passive Fund with…
Side-by-side numbers — fees, returns, risk, fund size, asset mix.
Peer funds
Other Australasian Equities 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 (5/7)
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 5 funds →AI & integrations
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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 NZ Shares Passive Fund?
Mercer NZ Shares Passive 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 NZ Shares Passive Fund?
It is a australasian equities managed fund. Funds investing primarily in shares listed on the NZX (New Zealand) or ASX (Australia), or both as Trans-Tasman portfolios. Includes active stock-pickers and passive index trackers.
What are the fees for the Mercer NZ Shares Passive Fund?
The annual fund charge for the Mercer NZ Shares Passive Fund is 0.36% 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 NZ Shares Passive Fund?
The risk indicator is 5/7 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 NZ Shares Passive Fund a PIE fund?
Yes. The Mercer NZ Shares Passive 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 NZ Shares Passive Fund?
Fund size (assets under management) is NZ$41 million as at the latest Quarterly Fund Update. Asset mix is approximately 98% growth assets and 2% income assets.
What does the Mercer NZ Shares Passive Fund invest in?
The latest published top holdings are: Fisher & Paykel Healthcare Corporation Limited (16.54%), Auckland International Airport Limited (10.18%), Infratil Limited (8.77%). 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 NZ Shares Passive Fund?
The Mercer NZ Shares Passive Fund is available via Mercer directly. Always read the current Product Disclosure Statement before investing.
Do passive funds have fees?
Yes, passive funds charge fees to cover administration and index tracking costs. The Mercer NZ Shares Passive Fund charges an annual fund charge of 0.36% p.a., which is materially lower than the peer-cohort average of 0.95% p.a. for this category.
How much do passive funds cost?
Passive fund fees vary by fund and manager. The Mercer NZ Shares Passive Fund has an annual fund charge of 0.36% p.a., which sits well below the typical peer-cohort average of 0.95% p.a. Check the Product Disclosure Statement or FMA Disclose register for fees on other funds you are comparing.
Is a 7% return realistic?
Past returns are not a reliable indicator of future returns. The Mercer NZ Shares Passive Fund returned 0.02% p.a. after fees (before tax) over the last five years as at the latest Quarterly Fund Update, reflecting the actual performance of NZ shares during that period. Check the FMA Disclose register for the fund's full performance history and PDS for risk information.