Kernel KiwiSaver Plan: NZ 50 ESG Tilted Fund Update
Fund update for the quarter ended 30 June 2025
What is the purpose of this update?
This document details how the Kernel NZ 50 ESG Tilted Fund has performed and outlines the fees charged. It is designed to help investors compare the fund with other investment options. Kernel Wealth Limited prepared this update in accordance with the Financial Markets Conduct Act 2013. The information presented is not audited and may be subject to updates.
Description of this fund
The Kernel NZ 50 ESG Tilted Fund invests in financial products listed on the NZX and is designed to track the S&P/NZX 50 Portfolio ESG Tilted Index.
| Total value of the fund: | $1,012,164 |
| The date the fund started: | 11 April 2022 |
| Number of investors: | 115 |
What are the risks of investing?
Risk indicator for the Kernel NZ 50 ESG Tilted Fund
The risk indicator is rated from 1 (low) to 7 (high). This rating reflects the volatility of the fund's assets. A higher risk rating generally implies higher potential returns over time, but also greater fluctuations in value.
Risk Scale:
1 (Lowest Risk) 2 3 4 5 6 7 (Highest Risk)
Note: Even the lowest category does not represent a risk-free investment, and other risks not captured by this rating may exist. This risk indicator is not a guarantee of future performance. It is based on 5 years of returns data (or market index returns if the fund has been operating for less than 5 years). For more information on risks, please refer to the Product Disclosure Statement - Equity Funds for the Kernel KiwiSaver Plan.
For assistance in clarifying your attitude to risk, you can seek financial advice or use the investor profiler at sorted.org.nz/tools/investor-profiler.
How has the fund performed?
Past Year Performance
| Description | Past Year |
|---|---|
| Annual return (after deductions for charges and tax) | 9.55% |
| Annual return (after deductions for charges but before tax) | 10.46% |
| Market index annual return (reflects no deduction for charges and tax) | 10.31% |
The market index annual return is based on the annual return of the S&P/NZX 50 Portfolio ESG Tilted Index (NZD). 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.
Annual return graph
The graph illustrates the fund's return 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. Please note: Past performance is not indicative of future results. Returns are shown after tax at the highest prescribed investor rate (PIR) for a New Zealand resident; your individual tax rate may differ.
Graph Data Points:
- 31-Mar-24: Fund 5.85%, Market Index 4.51%
- 31-Mar-25: Fund 3.19%, Market Index 3.88%
- Average Annual Return: Fund 2.50%, Market Index 2.84%
What fees are investors charged?
Investors in the Kernel NZ 50 ESG Tilted Fund incur fund charges. For the year ending 31 March 2025, these were:
| 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 transactions (e.g., withdrawals). Small differences in fees can significantly impact long-term investment growth.
What does the fund invest in?
Actual investment mix
This section shows the types of assets the fund currently holds. The fund's actual investment mix is 100.00% Australasian equities and 0.00% cash and cash equivalents.
Target investment mix
This outlines the asset allocation the fund generally aims to achieve.
| Asset Category | Target asset mix |
|---|---|
| Cash and cash equivalents | - |
| New Zealand fixed interest | - |
| International fixed interest | - |
| Australasian equities | 100.00% |
| International equities | - |
| Listed property | - |
| Unlisted property | - |
| Commodities | - |
| Other | - |
Top 10 investments
| Name | % of fund's net asset value | Type | Country | Credit rating (if applicable) |
|---|---|---|---|---|
| Fisher & Paykel Healthcare Corp Ltd | 10.35% | Australasian equities | New Zealand | |
| Fletcher Building Ltd (NZ Registry) | 8.65% | Australasian equities | New Zealand | |
| Meridian Energy | 8.60% | Australasian equities | New Zealand | |
| Auckland International Airport | 7.91% | Australasian equities | New Zealand | |
| Spark New Zealand Limited (NZ Registered) | 7.89% | Australasian equities | New Zealand | |
| Contact Energy Ltd | 5.98% | Australasian equities | New Zealand | |
| Precinct Properties New Zealand Limited | 5.94% | Australasian equities | New Zealand | |
| Westpac Banking Corporation (NZ Register) | 3.98% | Australasian equities | New Zealand | |
| Fonterra Shareholders' Fund | 3.60% | Australasian equities | New Zealand | |
| The a2 Milk Company Ltd | 3.44% | Australasian equities | New Zealand |
Currency hedging: As the fund invests solely in NZ dollar investments, currency hedging is not required.
Key personnel
This section lists the directors and employees who have significant influence over 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 |
Example of how this applies to an investor
An investor, Emma, had $10,000 in the fund on 1 July 2024 and made no further contributions. On 30 June 2025, Emma received a return of $1,046 after fund charges (representing 10.46% of her initial investment). Her total return after tax for the period was $955.
Further Information
Additional information, including the Product Disclosure Statement - Equity Funds for the Kernel KiwiSaver Plan, can be found on the offer register at www.disclose-register.companiesoffice.govt.nz.
Notes
Market index returns, along with actual fund returns, were used to determine the risk indicator, as the fund has not been operational for a full 5 years. Consequently, the risk indicator may offer a less precise reflection of the fund's potential future volatility. The risk indicator calculation utilized 1 year and 10 months of market index returns.
