# Mercer Responsible Balanced Fund > Mechanical fund record. Sourced from the FMA Disclose register. ManagedFundsNZ does not give financial advice and does not publish opinion-based ratings. - **Manager:** Mercer (Mercer (N.Z.) Limited) - **Asset class:** Diversified Funds - **Risk profile:** balanced - **Structure:** NZ Portfolio Investment Entity (PIE) — investor tax capped at PIR (max 28%) - **Responsible investment label:** yes (see SIPO for screening framework) - **Confidence tier:** C (Sorted Smart Investor → FMA Disclose) - **Last verified:** 2026-05-22 ## Summary The Mercer Responsible Balanced Fund is a diversified managed fund run by Mercer. Global wealth and consulting firm with a passive-leaning multi-asset fund range in NZ. ## Investment objective (from PDS) > The Fund aims to achieve a rate of return (after fees) that exceeds CPI increases by at least 2.5% per annum after tax and 3.5% before tax over a minimum of eight years and to outperform, over periods of one year or greater, the weighted average return of the market indices used to measure performance of the underlying funds/assets in which the fund invests. Source: Product Disclosure Statement dated 2026-03-19 (Tier A, lodged on FMA Disclose register). https://smartinvestor.sorted.org.nz/disclose-document/b720706a04231454/Mercer-Investment-Funds-PDS-Multi-Asset-Class-Funds.pdf ## Fund data - **Annual fund charge:** 1.25% p.a. (from the latest Quarterly Fund Update) - **5-year return (after charges, after tax at 28% PIR):** 3.52% p.a. - **Risk indicator:** 4/7 on the FMA-mandated standardised scale (1 = lower risk, 7 = higher risk) - **Fund size (AUM):** NZ$28 million - **Asset mix:** 53% growth assets · 47% income assets - **Fund started:** 11 August 2009 ## Top 10 holdings 1. Nvidia Corporation — 2.19% 2. Fisher & Paykel Healthcare Corporation Limited — 2.06% 3. Apple Inc. — 2.00% 4. Infratil Limited — 1.33% 5. Microsoft Corporation — 1.30% 6. Auckland International Airport Limited — 1.15% 7. New Zealand Government Bond 0.25% maturing 15/05/2028 — 1.12% 8. New Zealand Government Bond 3.00% maturing 20/04/2029 — 1.09% 9. New Zealand Government Bond 3.50% maturing 14/04/2033 — 1.05% 10. New Zealand Government Bond 1.50% maturing 15/05/2031 — 1.03% Holdings are disclosed in every Quarterly Fund Update; the full portfolio holdings file is available via the FMA Disclose register. ## Additional terms (from PDS) - **Distribution cadence:** No distributions (accumulating) - **Buy / sell spread:** 11 bps / 11 bps (transaction cost on subscription / redemption) ## Investment policy (from SIPO) ### Strategic asset allocation ranges | Asset class | Target | Min | Max | | --- | ---: | ---: | ---: | | Cash and cash equivalents | 4% | 0% | 20% | | New Zealand fixed interest | 10% | — | — | | International fixed interest - Overseas sovereign bonds | 11% | — | — | | International fixed interest - Global Credit | 10% | — | — | | Private Debt | 0% | 0% | 10% | | Other fixed interest | 5% | — | — | | Total fixed interest | 36% | 21% | 51% | | Total income assets | 40% | 30% | 60% | | Listed Infrastructure | 2% | — | — | | Unlisted Infrastructure | 3% | — | — | | Unlisted property | 3% | — | — | | Total real assets | 8% | 2% | 20% | | Australasian equities | 13% | 3% | 23% | | International equities | 39% | 29% | 49% | | Total growth assets | 60% | 40% | 70% | ### 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). ### 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. ### Exclusions - Controversial weapons (cluster munitions, anti-personnel landmines, biological/chemical/nuclear weapons manufacturers; automatic/semi-automatic civilian firearms) - Tobacco (production, nicotine alternatives, tobacco-based products; >50% revenue from tobacco distribution/wholesale/retail/services) - Russian assets (sanctioned entities, Russian-incorporated shares, Russian sovereign bonds, Russian currency, Russian private markets assets) - Coal, oil or gas (GICS sub-industries: Oil & Gas Drilling, Equipment & Services, Integrated Oil & Gas, Exploration & Production, Thermal Coal; companies with >15% revenue from extraction and proved/probable reserves) - Adult entertainment (>10% revenue) - Alcohol (>10% revenue) - Gambling (>10% revenue) - Depleted uranium (involvement in development or production of depleted uranium ammunition/armour) - Sustainable Global Credit additional: Nuclear weapons, Depleted uranium, Tobacco (>10% revenue from distribution/wholesale/retail/services), Cannabis (>10% revenue), Saudi Arabia, Adult entertainment (>10% revenue), Alcohol (>10% revenue), Gambling (>10% revenue), Live animal exports (>10% revenue), Animal fur production (>5% revenue), Thermal coal mining (>5% revenue), Oil sands production (>5% revenue), Fossil fuels (>15% revenue from exploration/extraction or primary GICS sub-industry) Source: Statement of Investment Policy and Objectives dated 2026-03-22. https://smartinvestor.sorted.org.nz/disclose-document/6f52e4cc3e99890f/Mercer-Investment-Funds-SIPO-23-March-2026.pdf ## Scheme disclosures (from OMI) Scheme-level. The same disclosures apply 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 of interest disclosed in OMI:** 6 ### Conflicts of interest (verbatim from 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. ### Related-party transactions - **Mercer (Australia) Pty Limited** (Related entity within Marsh McLennan group) — Support services in respect of corporate functions and fund services administration not otherwise provided by MNZ · A fee is paid by MNZ to MAPL (amount not specified) - **Mercer Investments (Australia) Limited** (Related entity within Marsh McLennan group) — Services associated with the management and investment in respect of certain assets of the MNZ funds · A fee is paid by MNZ to MIAL (amount not specified) - **Mercer Consulting (Australia) Pty Limited** (Related entity within Marsh McLennan group) — Investment consulting services to MNZ · A fee is paid by MNZ to MCAPL (amount not specified) - **Mercer Global Investments Europe Limited** (Related entity within Marsh McLennan group) — Investment management, sales and distribution and other support services to MNZ · A fee is paid by MNZ to MGIE (amount not specified) - **Marsh & McLennan Innovation Centre Limited** (Related entity within Marsh McLennan group) — Technology in respect of technology and marketing to MNZ · A fee is paid by MNZ to MMICL (amount not specified) Source: Other Material Information document dated 2026-03-22. https://smartinvestor.sorted.org.nz/disclose-document/a49039cda441ced1/Mercer-Investment-Funds-OMI-23-March-2026.pdf ## How to invest Available via: Mercer directly. Read the current Product Disclosure Statement (PDS) before investing. ## Sources - **FMA Disclose register** (primary): https://disclose-register.companiesoffice.govt.nz/search?searchType=ALL&q=Mercer%20Responsible%20Balanced%20Fund - **Product Disclosure Statement:** /disclose-document/b720706a04231454/Mercer-Investment-Funds-PDS-Multi-Asset-Class-Funds.pdf - **Sorted Smart Investor** (cross-validation): https://smartinvestor.sorted.org.nz/kiwisaver-and-managed-funds/SCH10307/OFR10322/FND101/ - **Manager website:** https://www.mercer.com/en-nz ## Citations (authoritative primary sources) - FMA Disclose register — https://disclose-register.companiesoffice.govt.nz/ (publisher: Financial Markets Authority, NZ) - Inland Revenue — PIE / PIR rules — https://www.ird.govt.nz/roles/portfolio-investment-entities - Financial Markets Conduct Act 2013 — https://www.legislation.govt.nz/act/public/2013/0069/latest/DLM4090578.html - Sorted Smart Investor (cross-validation only) — https://smartinvestor.sorted.org.nz/ ## This file - **Canonical HTML:** https://managedfunds.nz/funds/mercer/responsible-balanced/ - **Markdown (this file):** https://managedfunds.nz/funds/mercer/responsible-balanced/markdown.md - **Structured data (JSON):** https://managedfunds.nz/funds/mercer/responsible-balanced/data.json - **First published:** 2026-05-08 - **Last refreshed:** 2026-05-22 - **Reuse licence:** citation with link back to the canonical HTML is granted. No paid redistribution. Full terms: https://managedfunds.nz/llms-policy.txt --- ManagedFundsNZ is independent. We are not a Financial Advice Provider. This page is general information sourced from the FMA Disclose register; it is not personalised financial advice. Read the current PDS and consider talking to a licensed adviser before investing.