Kernel Global ESG (NZD Hedged) Fund Update
Quarter Ended 30 June 2025
Purpose of this Update
This document details the performance and fees of the Kernel Global ESG (NZD Hedged) Fund. It helps investors compare the fund with others. Kernel Wealth Limited prepared this update in accordance with the Financial Markets Conduct Act 2013. This information is not audited and may be updated.
Fund Description
The Kernel Global ESG (NZD Hedged) Fund's investment objective is to provide a return (before tax, fees and expenses) that closely matches the return on the S&P World Net Zero 2050 Paris-Aligned ESG ex non-pharma Animal Testing (PAB Ex AT) (NZD Hedged) Index.
The market index annual return is based on the annual return of the S&P World Net Zero 2050 Paris-Aligned ESG ex non-pharma Animal Testing (PAB Ex AT) (NZD Hedged) 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: $3,607,819
Date the fund started: 03 July 2023
Number of investors: 148
Risks of Investing
Risk Indicator: The risk indicator is rated from 1 (low) to 7 (high). The rating reflects how much the value of the fund's assets goes up and down. A higher risk generally means higher potential returns over time, but more ups and downs along the way.
To clarify your attitude to risk, seek financial advice or use the investor profiler at sorted.org.nz/tools/investor-profiler.
Note: The lowest category does not mean a risk-free investment. Other risks may not be captured by this rating. The risk indicator is not a guarantee of future performance and is based on returns data for 5 years to 30 June 2025. It will be updated in future fund updates.
Fund Performance
Annual Returns
| Past Year | |
|---|---|
| Annual return (after deductions for charges and tax) | 13.73% |
| Annual return (after deductions for charges but before tax) | 14.08% |
| Market index annual return (reflects no deduction for charges and tax) | 15.02% |
Annual Return Graph
This graph shows the return after fund charges and tax for each year ending 31 March since the fund started. The last bar shows the average annual return since the fund started, up to 30 June 2025. Important: This does not tell you how the fund will perform in the future. Returns are after tax at the highest prescribed investor rate (PIR) for an individual New Zealand resident; your tax may be lower.
Graph description: The graph displays annual returns for the fund and the market index. For the year ending 31 March 2025, the fund returned 8.53% and the market index returned 9.05%. The average annual return for the fund is 19.20% and for the market index is 20.85% (up to 30 June 2025).
Fees Charged
Investors are charged fund charges. In the year to 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% |
Note: Investors are not charged individual action fees. All fees are inclusive of GST. Small differences in fees can have a big impact on your investment over the long term.
Fund Investment
Actual Investment Mix
This shows the types of assets the fund invests in.
Asset Mix Description: The fund's assets are composed of 97.90% International equities, 1.98% Australasian equities, and 0.13% Cash and cash equivalents.
Target Investment Mix
This shows the mix of assets that the fund generally intends to invest in.
| 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 | - |
Top 10 Investments
| Name | % of fund's net asset value | Type | Country | Credit rating (if applicable) |
|---|---|---|---|---|
| Nvidia Ord | 5.43% | International equities | United States | |
| Microsoft | 5.16% | International equities | United States | |
| Apple Inc | 4.47% | International equities | United States | |
| Alphabet | 3.51% | International equities | United States | |
| Amazon.com Inc | 2.23% | 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 | 1.74% | International equities | United States | |
| Mastercard Inc Class A Ord | 1.46% | International equities | United States | |
| Costco Wholesale Corp | 1.37% | International equities | United States |
The top 10 investments make up 29.53% of the fund's net asset value.
Currency hedging: The fund is hedged back to New Zealand dollars. As at 30 June 2025, the hedging ratio was 99.39%.
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, can be obtained from the offer register at www.disclose-register.companiesoffice.govt.nz.
Notes
Market index returns (as well as actual returns) have been used to complete the risk indicator, as the fund has not been in existence for 5 years. As a result, the risk indicator may provide a less reliable indicator of the potential future volatility of the fund. The risk indicator for the fund uses 3 years and 1 month of market index returns.
