RESPONSIBLE CONSERVATIVE FUND

Mercer's Responsible Conservative Fund charges a 0.42 percent management fee, placing it at the lower end for actively managed conservative options, with another 0.07 percent in other costs. The fund holds 60 percent in bonds and nearly 20 percent in cash, with just 15 percent in international shares and under 5 percent in Australasian equities. This is a low-growth allocation built for capital preservation and short time horizons.

The bond portfolio is heavily weighted to New Zealand government debt, with nine of the ten largest holdings being individual NZ government bonds spanning maturities from 2028 to 2041. The sole international holding in the top ten is the iShares Mortgage Backed Bond ETF at 4 percent, giving some exposure to US securitised debt. New Zealand bonds make up 27 percent of the fund, while international bonds account for 33 percent. The high cash weighting and domestic government bond concentration mean the fund is anchored to New Zealand interest rate movements and offers minimal inflation protection through growth assets.

The responsible investment mandate suggests the fund applies ethical or environmental screens, though the dominance of government bonds means much of the portfolio sits outside traditional equity screening frameworks. This is a defensive, income-focused fund with limited growth potential.

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