Kernel KiwiSaver Plan
NZ Small & Mid Cap Opportunities Fund
Fund update for the quarter ended 30 June 2025
Published: 28 July 2025
What is the purpose of this update?
This document details the performance and fees of the Kernel NZ Small & Mid Cap Opportunities Fund. It aims to help investors compare the fund with others. Kernel Wealth Limited prepared this update in accordance with the Financial Markets Conduct Act 2013. This information is unaudited and may be updated.
Description of this fund
The Kernel NZ Small & Mid Cap Opportunities Fund invests in financial products listed on the NZX and is designed to track the S&P/NZX Emerging Opportunities Index.
The market index annual return is based on the annual return of the S&P/NZX Emerging Opportunities Index. Additional information about the market index is available in the ‘Statement of Investment Policy and Objectives’ document on the offer register at www.disclose-register.companiesoffice.govt.nz.
Fund Details:
- Total value of the fund: $479,981
- Date the fund started: 11 April 2022
- Number of investors: 74
How has the fund performed?
Performance Data (Past Year):
| Metric | Value |
|---|---|
| Annual return (after deductions for charges and tax) | 29.18% |
| Annual return (after deductions for charges but before tax) | 30.56% |
| Market index annual return (reflects no deduction for charges and tax) | 30.93% |
Annual Return Graph:
The annual return graph illustrates the fund's performance after charges and tax for each year ending 31 March since its inception. The final bar represents the average annual return up to 30 June 2025. It is important to note that past performance does not guarantee future results. 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.
Graph Description: A bar chart displays annual returns. For the period ending 31 March 2024, the fund returned 2.24% and the market index returned 7.30%. For the period ending 31 March 2025, the fund returned 0.78% and the market index returned 8.70%. The average annual return since the fund started is -4.27% for the fund and -3.08% for the market index.
What are the risks of investing?
Risk Indicator:
The risk indicator for the Kernel NZ Small & Mid Cap Opportunities 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 with 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.
It is important to note that even the lowest risk category does not signify a risk-free investment, as other risks not captured by this rating may exist.
The risk indicator is not a guarantee of future performance. It is based on 5 years of returns data (or available data if less than 5 years) up to 30 June 2025. While risk indicators are generally stable, they can change. The indicator will be updated in future fund updates. For more information on risks, refer to the Product Disclosure Statement - Equity Funds for the Kernel KiwiSaver Plan.
What fees are investors charged?
Investors in the Kernel NZ Small & Mid Cap Opportunities 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% |
| Including - Manager’s basic fee | 0.25% |
| Other management and administration charges | 0.00% |
Investors are not charged individual action fees for specific actions or decisions (e.g., withdrawals). All fees include GST. Small differences in fees and charges can significantly impact long-term investment growth.
Example of how this applies to an investor
Emma invested $10,000 in the fund on 1 July 2024 and made no further contributions. On 30 June 2025, after fund charges, Emma received a return of $3,056, representing 30.56% of her initial investment. This resulted in a total after-tax return of $2,918 for the period.
What does the fund invest in?
Actual Investment Mix:
The fund's actual investment mix consists of 100% Australasian equities and 0.00% Cash and cash equivalents.
Target Investment Mix:
The fund generally aims to invest in the following asset mix:
| Asset Category | Target Asset Mix |
|---|---|
| Cash and cash equivalents | - |
| New Zealand fixed interest | - |
| International fixed interest | - |
| Australasian equities | 100% |
| International equities | - |
| Listed property | - |
| Unlisted property | - |
| Commodities | - |
| Other | - |
Currency hedging: As the fund invests solely in NZ dollar investments, currency hedging is not required.
Top 10 investments
The top 10 investments represent 55.04% of the fund’s net asset value.
| Name | % of fund’s net asset value | Type | Country |
|---|---|---|---|
| Vital Healthcare Property | 6.74% | Australasian equities | New Zealand |
| Argosy Property Ltd | 6.74% | Australasian equities | New Zealand |
| Skellerup Holdings Ltd | 6.73% | Australasian equities | New Zealand |
| Channel Infrastructure NZ Ltd | 5.71% | Australasian equities | New Zealand |
| Sky City Entertainment Group Limited | 5.20% | Australasian equities | New Zealand |
| Fonterra Shareholders' Fund | 5.15% | Australasian equities | New Zealand |
| Heartland Group Holdings Limited | 4.99% | Australasian equities | New Zealand |
| Vista Group International Limited | 4.87% | Australasian equities | New Zealand |
| Stride Property Limited | 4.61% | Australasian equities | New Zealand |
| Scales Corporation Limited | 4.30% | Australasian equities | New Zealand |
Key personnel
This section lists the directors and employees who significantly influence the fund's investment decisions.
| 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.
Notes
¹ Market index returns, as well as actual returns, were used to determine the risk indicator, as the fund has not been operational for 5 years. Consequently, the risk indicator might offer a less precise reflection of the fund's potential future volatility. The fund's risk indicator is based on 1 year and 10 months of market index returns.
