Kernel KiwiSaver Plan: Cash Plus Fund Update
Fund update for the quarter ended 30 June 2025
This fund update was first made publicly available on 28 July 2025.
What is the purpose of this update?
This document details the performance and fees of the Kernel Cash Plus Fund, enabling comparison with other funds. Kernel Wealth Limited prepared this update in accordance with the Financial Markets Conduct Act 2013. The information is unaudited and may be updated.
Description of this fund
The Kernel Cash Plus Fund's investment objective is to provide a return (before tax, fees, and expenses) that closely matches the return on the Bloomberg NZ Bond Bank Bill Index.
Total value of the fund: $9,929,953
Date the fund started: 07 November 2022
Number of investors: 335
How has the fund performed?
Performance data for the past year:
- Annual return (after deductions for charges and tax): 3.77%
- Annual return (after deductions for charges but before tax): 5.27%
- Market index annual return (reflects no deduction for charges and tax): 4.62%
The market index annual return is based on the Bloomberg NZ Bond Bank Bill 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.
Annual return graph
This graph illustrates the return after fund charges and tax for each year ending 31 March since the fund's inception. The final bar represents the average annual return up to 30 June 2025. Please note: 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 differ.
Performance Data:
| Period | Fund Return (after tax) | Market Index Return |
|---|---|---|
| 31-Mar-24 | 5.72% | 4.64% |
| 31-Mar-25 | 5.16% | 4.18% |
| Average Annual Return (up to 30-Jun-25) | 5.12% | 4.12% |
What are the risks of investing?
Risk indicator for the Kernel Cash Plus Fund:
The risk indicator is rated from 1 (low risk) to 7 (high risk). This rating reflects how much the fund's asset value fluctuates. Higher risk generally corresponds to higher potential returns over time, but also involves greater volatility.
To assess your personal risk tolerance, you can seek financial advice or use the investor profiler at sorted.org.nz/tools/investor-profiler.
Important Note: Even the lowest risk category does not guarantee 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 historical returns data for 5 years (or 2 years and 5 months of market index returns, as the fund has not been in existence for 5 years). While risk indicators are typically stable, they can change. Future fund updates will reflect any changes. For more information on risks associated with investing in this fund, please refer to the Product Disclosure Statement - Diversified & Other Funds for Kernel KiwiSaver Plan.
What fees are investors charged?
Investors in the Kernel Cash Plus 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% |
| 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 are inclusive of GST. Small differences in fees and charges can significantly impact long-term investment growth.
What does the fund invest in?
Actual investment mix:
The fund's actual investment mix is composed of: 89.28% Cash and cash equivalents and 10.72% New Zealand fixed interest.
Example of how this applies to an investor:
An investor, Emma, who held $10,000 in the fund from 1 July 2024 without further contributions, received a return of $527 after fund charges (5.27% of her initial investment) by 30 June 2025. This resulted in a total after-tax return of $377 for the period.
Target investment mix:
The fund generally aims for the following asset allocation:
| Asset Category | Target asset mix |
|---|---|
| Cash and cash equivalents | 100.00% |
| New Zealand fixed interest | - |
| International fixed interest | - |
| Australasian equities | - |
| International equities | - |
| Listed property | - |
| Unlisted property | - |
| Commodities | - |
| Other | - |
Top 10 investments:
| Name | % of fund's net asset value | Type | Country | Credit rating (if applicable) |
|---|---|---|---|---|
| Bank of China Deposit | 14.96% | Cash and cash equivalents | New Zealand | A |
| Kiwibank Ltd FRN 13/06/2028 | 7.44% | Cash and cash equivalents | New Zealand | AA |
| Rabobank FRN 05/04/2027 | 6.44% | Cash and cash equivalents | New Zealand | AA |
| Auckland Council FRN 04/10/2027 | 5.83% | Cash and cash equivalents | New Zealand | AA |
| SBS Commercial Paper 4.20% 06/10/2025 | 3.22% | Cash and cash equivalents | New Zealand | BBB+ |
| Tax Traders 3.94% 17/07/2025 | 2.98% | Cash and cash equivalents | New Zealand | AAA |
| MTFGI FRN 24/11/2026 | 2.92% | Cash and cash equivalents | New Zealand | A+ |
| NZGT Tributum CP 3.73% 26/09/2025 | 2.90% | Cash and cash equivalents | New Zealand | A |
| Auckland Council CP 05/09/2025 | 2.69% | Cash and cash equivalents | New Zealand | AA |
| Rabobank FRN 19/06/2028 | 2.55% | Cash and cash equivalents | New Zealand | AA |
The top 10 investments constitute 51.93% of the fund's net asset value.
Currency hedging: The fund is not hedged for currency.
Key personnel
The following individuals have the most influence on 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 |
| Matthew Winton | Portfolio Manager | 3 | 1 | Europe Head of Linear Interest Rate Products, BNP Paribas, London | 7 | 0 |
Further information
Additional information, including the Product Disclosure Statement - Diversified & Other Funds for Kernel KiwiSaver Plan, is available on the offer register at www.disclose-register.companiesoffice.govt.nz.
Notes
The risk indicator calculation utilized market index returns (and actual returns) as the fund has not been operational for a full five years. Consequently, the risk indicator may offer a less precise reflection of the fund's potential future volatility. The risk indicator for this fund is based on 2 years and 5 months of market index returns.
