Right-arm swing-bowler Southee (7/33 in nine overs) ripped through the England batting to restrict them to a dismal 123 all out in 33.2 overs at the Westpac Stadium.
It was New Zealander's best bowling in One-Day Internationals (ODIs) and the World Cup and the third best by any bowler in the tournament's 11 editions.
His superb display set up the tournament co-hosts' comprehensive victory, which they completed in just 12.2 overs.
"Shane Bond has been great. He gives us a lot of confidence. A lot of work he does behind the scenes," said Southee who was adjudged Man-of-the-Match.
The 26-year-old said at the post-match press conference that he was privileged to be part of a good bowling unit and enjoyed the camaraderie with his fellow wicket-takers.
"We have been bowling well as a unit together. Just that today everything fell together," he said.
"As a player you have a bit of a niggle any time, but with the work that Chris Donaldson has done with us, we are a pretty fit unit. Another great team performance."
Southee was particularly pleased to achieve his record-setting feat in his country in front of his home fans.
"A packed house, pretty special to come out in front of them," he said.