Mercer Cash

This $33 million fund sits entirely in cash and short-term debt, with its largest single holding a 6% slice in an ASB Bank term deposit maturing in 2026. The portfolio reads like a roll call of New Zealand's most creditworthy borrowers: the big four banks, local government funding vehicles, Auckland Council, and Toyota Finance NZ. Nothing here carries equity risk or ventures offshore.

The total fee of 0.32% sits in the middle of the pack for cash funds, though at this risk level every basis point matters when returns are modest by design. Over the past year the fund returned 3.4%, placing it 12th in its category. The three-year annualised figure of 4.7% reflects the higher interest rate environment of recent times, while the five-year return of 3.3% captures the full cycle from rock-bottom rates to the recent peak.

With zero growth assets and a portfolio of short-dated instruments, this is capital preservation in its purest form. The fund spreads exposure across banks, councils and corporates, but concentration is notable: the top ten holdings account for just over a third of the total. Mercer has built this as a parking bay for members who want no volatility and accept the trade-off in long-term purchasing power.

General information only, not financial advice. Past performance is not a reliable indicator of future results.