Kernel NZ 50 ESG Tilted Fund
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 NZ 50 ESG Tilted Fund, aiding comparison with other funds. Kernel Wealth Limited prepared this update in accordance with the Financial Markets Conduct Act 2013. This information is not audited and may be updated.
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: $43,841,598
Date the fund started: 14 July 2021
How has the fund performed?
Performance Summary
| Metric | 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 annual return graph displays bar charts comparing the fund's annual return against the market index for the years ending March 31st. It also shows the average annual return up to June 30th, 2025. The bars illustrate the performance trend over these periods. Returns shown are after tax at the highest prescribed investor rate (PIR) for an individual New Zealand resident; your tax may be lower.
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). 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 help you clarify your own attitude to risk, you can seek financial advice or work out your risk profile at sorted.org.nz/tools/investor-profiler.
Note: Even the lowest category does not mean a risk-free investment, and there are other risks not captured by this rating. This risk indicator is not a guarantee of a fund's future performance. It is based on returns data for 5 years to 30 June 2025. While risk indicators are usually relatively stable, they do shift from time to time and will be updated in future fund updates. See the Product Disclosure Statement - Equity Funds for the Kernel Funds for more information about the risks associated with investing in this fund.
What fees are investors charged?
Investors in the Kernel NZ 50 ESG Tilted Fund are charged fund charges. In the year to 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 (for example, for withdrawing from funds). All fees are inclusive of GST. Small differences in fees and charges can have a big impact on your investment over the long term.
What does the fund invest in?
Actual investment mix
This shows the types of assets that the fund invests in.
Asset Allocation: Australasian equities 100.00%, Cash and cash equivalents 0.00%
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 | 100.00% |
| International equities | - |
| Listed property | - |
| Unlisted property | - |
| Commodities | - |
| Other | - |
Top 10 investments
The top 10 investments make up 66.34% of the fund's net asset value.
| 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 only in NZ dollar investments, currency hedging is not required.
Key personnel
This 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
You can also obtain this information, the Product Disclosure Statement - Equity Funds for the Kernel Funds, and some additional information 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 1 year(s) 1 month(s) of market index returns.
