Purpose of this Update
This document details the performance and fees of the Kernel Global ESG Fund, helping investors compare it with other funds. Kernel Wealth Limited prepared this update in accordance with the Financial Markets Conduct Act 2013. The information is not audited and may be updated.
Fund Description
The Kernel Global ESG Fund aims to provide a return (before tax, fees, and expenses) that closely matches the return of the S&P World Net Zero 2050 Paris-Aligned ESG ex non-pharma Animal Testing (PAB Ex AT) (NZD) Index.
Fund Details:
- Total value of the fund: $8,367,983
- Date the fund started: 03 July 2023
- Number of investors: 361
Fund Performance
The market index annual return is based on the S&P World Net Zero 2050 Paris-Aligned ESG ex non-pharma Animal Testing (PAB Ex AT) (NZD) Index. Additional information is available in the 'Statement of Investment Policy and Objectives' document on the offer register at www.disclose-register.companiesoffice.govt.nz.
| Performance Metric | Past Year |
|---|---|
| Annual return (after deductions for charges and tax) | 16.20% |
| Annual return (after deductions for charges but before tax) | 17.71% |
| Market index annual return (reflects no deduction for charges and tax) | 18.30% |
Annual Return Graph Description: The annual return graph illustrates the fund's performance after fund charges and tax for each year ending 31 March since the fund's inception. The final bar represents the average annual return since the fund started, up to 30 June 2025. It is important to note that this data does not predict future performance. Returns are presented after tax at the highest prescribed investor rate (PIR) for an individual New Zealand resident; your personal tax rate may be lower.
Risks of Investing
The risk indicator for the Kernel Global ESG Fund is rated from 1 (low) to 7 (high). This rating reflects the volatility of the fund's assets. Higher risk generally correlates with higher potential returns over time, but also involves greater fluctuations.
To understand your personal risk tolerance, you can seek financial advice or use the investor profiler at sorted.org.nz/tools/investor-profiler.
Note: The lowest risk category does not signify a risk-free investment. Other risks not captured by this rating may exist. The risk indicator is not a guarantee of future performance and is based on returns data for 5 years to 30 June 2025. While typically stable, risk indicators can change. Kernel will continue to update this indicator in future fund updates. For more information on risks, refer to the Product Disclosure Statement - Equity Funds for the Kernel KiwiSaver Plan.
Fees Charged to Investors
Investors in the Kernel Global ESG Fund incur fund charges. For the year ending 31 March 2025, these were:
| Fee Description | % per annum of fund's net asset value |
|---|---|
| Total fund charges | 0.25% |
| Which are made up of: | |
| Total management and administration charges | 0.25% |
| Manager's basic fee | 0.25% |
| Other management and administration charges | 0.00% |
Individual action fees are not charged for specific decisions like withdrawals. All fees include GST. Small differences in fees can significantly impact long-term investment growth.
Investment Allocation
Actual Investment Mix: This shows the current asset allocation of the fund.
The fund is invested primarily in International Equities (98.05%), with a smaller allocation to Australasian Equities (1.98%) and a minimal amount in Cash and cash equivalents (0.03%).
Target Investment Mix: This represents the fund's intended asset allocation.
| Asset Category | Target Asset Mix |
|---|---|
| Cash and cash equivalents | - |
| New Zealand fixed interest | - |
| International fixed interest | - |
| Australasian equities | - |
| International equities | 100.00% |
| Listed property | - |
| Unlisted property | - |
| Commodities | - |
| Other | - |
Currency hedging: The fund is not hedged for currency.
Top 10 Investments
The top 10 investments constitute 29.59% of the fund's net asset value.
| Name | % of fund's net asset value | Type | Country | Credit rating (if applicable) |
|---|---|---|---|---|
| Nvidia Ord | 5.44% | International equities | United States | |
| Microsoft | 5.17% | International equities | United States | |
| Apple Inc | 4.47% | International equities | United States | |
| Alphabet | 3.52% | International equities | United States | |
| Amazon.com Inc | 2.24% | International equities | United States | |
| Visa Inc | 2.09% | International equities | United States | |
| Tesla Inc Ordinary Shares | 2.07% | International equities | United States | |
| Meta Platforms Inc | 1.75% | International equities | United States | |
| Mastercard Inc Class A Ord | 1.46% | International equities | United States | |
| Costco Wholesale Corp | 1.38% | International equities | United States |
Key Personnel
This section shows the directors and employees who have the most influence on the investment decisions of the fund.
| Name | Current Position | Years | Months | Previous Position | Years | Months |
|---|---|---|---|---|---|---|
| Dean Anderson | Chief Executive | 6 | 9 | Smartshares Product Manager, NZX | 4 | 4 |
| Stephen Upton | Chief Operating Officer | 6 | 0 | Smartshares Chief Operating Officer - NZX | 3 | 6 |
| Kerry McIntosh | Chairman | 6 | 0 | Operating Partner, Zino Ventures (current) | 7 | 4 |
| Vicki Dale | Investment Committee Member | 2 | 7 | Risk and Compliance Manager, Kernel Wealth (current) | 3 | 8 |
| Rhea Prasad | Portfolio Manager | 2 | 7 | Investment Dealer, Pie Funds | 1 | 3 |
Further Information
Additional information, including the Product Disclosure Statement - Equity Funds for the Kernel KiwiSaver Plan, is available on the offer register at www.disclose-register.companiesoffice.govt.nz.
