MFL transfer — what happened and why your balance moved

We know seeing a lower balance after your MFL investments moved from ANZ Investments to Mercer can feel worrying. This short note explains what happened, why your balance may have gone down, and what it means for your long‑term savings.

What happened

MFL investments were largely transferred to Mercer at the end of February. Where possible, the investments were transferred to Mercer without selling them, via an in-specie transfer. This way, the investments were kept intact, avoiding transaction costs involved with selling and buying securities, and avoiding investments being out of the market. 92% of MFL’s assets were transferred that way. In-specie transfer was not possible for 8% of the Scheme assets. These assets were sold out of ANZ Investments’ products, and the cash proceeds were used to purchase equivalent Mercer products. This process was carefully managed to minimise investments being out of the market. Mercer did not charge MFL any fees in respect of the transfer and transaction costs were carefully managed. Overall, the transfer of the assets to Mercer had minimal impact on Fund value and performance.

The driver of fund value and performance in the last two to three months has continued to be the performance of the underlying investments.   

Performance snapshot (24 February – 30 March 2026)

• MFL Mutual Fund: -8.94%

Market movements over the same period

•  NZ listed property: -5.04%
•  Australian listed property (hedged): -10.43% 
•  Global listed property (hedged): -8.65%

Why your balance may have fallen

MFL has a relatively high allocation to listed property. Listed property returns were particularly weak across the period, which led MFL investment values to fall more than many other more diversified funds.

Market volatility

Markets were volatile over this period and continue to be so. Geopolitical events and concerns about oil supply and growth contributed to uncertainty and weaker returns in equities and listed property. Volatility is normal in the short term; it does not necessarily change a fund’s long‑term objectives or strategy.

What this means for you

• Short‑term dips are normal; long‑term goals matter most.
• No immediate action is required unless you plan to withdraw your funds – in which case, we recommend you speak with a financial adviser.
• Mercer’s investment team is monitoring markets and Mercer financial advisers are available through the usual member channels if you want personalised guidance.

Key takeaway

The lower balances you are seeing reflect market volatility during the transfer window — particularly weak listed property returns — not an error, new fees or an additional loss caused by the transfer.

Before making financial or investment decisions, it is recommended that you contact an appropriately suitably qualified financial adviser.

• If you already work with a financial adviser, feel free to reach out to them.
• Mercer's financial advice team can provide specific advice in relation to your savings in MFL and general information on other types of financial products. There is no individual charge to you for this service.  You can complete an online form to arrange a call back from Mercer's financial advice team, or arrange a call back via the Helpline team by calling 0800 207 207.