Mercer (N.Z.) Limited runs the Mercer KiwiSaver Scheme as a “manager of managers”: rather than picking shares itself, it selects other fund managers for each asset class and combines them. Its KiwiSaver funds carry “Responsible” names and, per the fund descriptions on Sorted, are managed with reference to environmental, social and governance (ESG) factors. Many members join through an employer that uses Mercer for its workplace super scheme. This is one of our KiwiSaver provider reviews.
Mercer at a Glance
| Feature | Detail |
|---|---|
| Provider type | Global investment manager (corporate/institutional focus) |
| Scheme manager | Mercer (N.Z.) Limited |
| Default provider | No: not reappointed in the 2021 review |
| Funds available | Responsible range, including Balanced, Growth, High Growth and Shares funds, plus a Cash fund |
| Responsible Growth Fund total fees | 0.86% a year, no membership fee (Sorted Smart Investor, checked October 2026) |
| PIE fund | Yes |
| FMA regulated | Yes |
Mercer’s Investment Approach
Mercer uses a multi-manager approach: investing across multiple underlying fund managers selected for 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
The Responsible Growth Fund’s description on Sorted says it “is managed with reference to environmental, social and governance (ESG) factors and is certified by the Responsible Investment Association of Australasia.”
Mercer Fund Range
Mercer’s KiwiSaver funds listed on Sorted Smart Investor include the Responsible Balanced, Responsible Growth, Responsible High Growth and Responsible Shares funds, and a Cash fund. Fund names, fees and mixes change: the current Product Disclosure Statement has the full list.
Mercer’s Fees
Mercer charges a percentage fee on each fund, set by the fund rather than one flat scheme rate. Using the Responsible Growth Fund as the example, Sorted Smart Investor shows (checked October 2026, $40,000 balance):
| Fee type | Responsible Growth Fund | Sorted comparison average |
|---|---|---|
| Management fee | 0.77% ($308) | 0.91% |
| Other charges | 0.09% ($36) | 0.11% |
| Membership fee | None | 0.04% |
| Total | 0.86% ($344) | 1.06% |
Because Mercer has no flat membership fee on this fund, the whole cost scales with your balance: on $10,000 the 0.86% total comes to about $86 a year. Because Mercer is a multi-manager, the underlying managers’ fees are part of the total, so check the PDS for how the charges in your fund are built up.
For other providers’ fees side by side, see the KiwiSaver fund fees comparison.
Performance
Sorted Smart Investor shows the Responsible Growth Fund returned an average of 5.97% a year over the past five years after fees and tax (28% PIR), against 5.48% for the average growth KiwiSaver fund (fund data to 30 June 2026). On 30 June 2026 the fund held 82.17% growth assets. Past returns don’t predict future returns; check each fund’s latest quarterly fund update.
Default Provider Status
Mercer was a default KiwiSaver provider before December 2021 but was not reappointed in the 2021 review, so people who are enrolled without choosing a provider are no longer allocated to Mercer. From 1 December 2021, Mercer members who were default investors and hadn’t made an active choice to stay were transferred to one of the new default providers; members who had chosen Mercer stayed. KiwiSaver default funds explained covers who the default providers are now.
Features and Limitations
Features:
- Multi-manager diversification
- Responsible fund range managed with reference to ESG factors
- No membership fee on the Responsible Growth Fund (Sorted, October 2026)
- Corporate and employer scheme relationships
Limitations:
- Multi-manager structure adds complexity and layers of underlying manager fees
- Responsible Growth Fund total fees are higher than those of passive index funds from providers such as Simplicity and Kernel
- No default provider status since 2021
Where to check the latest data
Rates, fees and returns change often. Before deciding, check current figures yourself:
- Sorted Smart Investor: compares fees, returns and risk levels of KiwiSaver and managed funds.
- Disclose register: holds each fund's product disclosure statement and quarterly fund updates.
- The provider's latest fund update: gives the fund's current fees, returns and holdings.