Mercer is a global investment consulting and funds management firm operating in over 40 countries. In NZ, Mercer operates the Mercer KiwiSaver scheme — one of the nine government-appointed default providers since 2021.
Mercer at a Glance
| Feature | Detail |
|---|---|
| Provider type | Global investment manager (corporate/institutional focus) |
| Parent company | Mercer (part of MMC global) |
| Default provider | Yes (from 2021) |
| Funds available | Multiple — including conservative, moderate, balanced, growth, high growth options |
| Growth fund fee | ~0.45–0.70% |
| Member fee | Varies — check current PDS |
| PIE fund | Yes |
| FMA regulated | Yes |
Mercer’s Investment Approach
Mercer uses a multi-manager approach — investing across multiple underlying fund managers selected for their expertise in different asset classes. This means:
- Your Mercer KiwiSaver fund invests through other fund managers, not directly in the market
- Mercer acts as the “manager of managers”
- Broad diversification across managers and asset classes
- More complex structure than a simple index or single-manager fund
Mercer Fund Range
| Fund | Approx. fee |
|---|---|
| Conservative | ~0.40% |
| Moderate | ~0.45% |
| Balanced | ~0.50% |
| Growth | ~0.60% |
| High Growth | ~0.65% |
| Shares | ~0.70% |
Fees approximate — confirm in current PDS. Fund range and names may change.
Mercer’s fee range (0.40–0.70%) is notably lower than most active single-manager providers (Milford, Generate, Fisher Funds at 0.85–1.30%), making it a mid-market option.
Fees — How Mercer Compares
| Provider | Growth fund fee |
|---|---|
| Kernel | ~0.25% |
| Simplicity | ~0.31% |
| Mercer | ~0.60% |
| Booster | ~0.50% |
| ANZ | ~1.06% |
| Milford | ~1.05% |
Mercer sits in a middle ground — more expensive than passive index funds, but significantly cheaper than high-fee active managers.
Default Provider Status
As a government-appointed default provider, Mercer must:
- Offer a balanced fund as the default option
- Meet FMA standards for fees, disclosure, and governance
- Accept any member allocated to them by IRD
This doesn’t mean Mercer is the best option — but it has been vetted by the government as a suitable provider for members who make no active choice.
Pros
- Mid-range fees (cheaper than most active managers)
- Default provider status — government-vetted
- Multi-manager diversification
- Comprehensive fund range including moderate and high growth tiers
- Global resources and expertise
Cons
- More expensive than passive index providers
- Multi-manager structure adds complexity and potential fee layers
- Less NZ brand recognition vs bank providers
- Less commonly reviewed or discussed in NZ media
Who Is Mercer Suited To?
Mercer is worth considering for:
- Members who want a mid-range fee option with broader fund choice than bank providers
- Corporate or employer scheme members (Mercer has strong corporate relationships)
- Members who were allocated there as a default and find the fee and fund range acceptable
For most individual retail members comparing options, Simplicity or Kernel offer lower fees with comparable or better after-fee performance.
How to Join Mercer
Join or enquire at mercerkiwisaver.co.nz.