Kernel KiwiSaver Plan
Kernel S&P 500 (NZD Hedged) 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 provides information on the performance and fees of the Kernel S&P 500 (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. The information is not audited and may be updated.
Description of this fund
The Kernel S&P 500 (NZD Hedged) Fund aims to provide a return (before tax, fees, and expenses) that closely matches the return on the S&P 500 Dynamic Hedged Index (NZD).
Fund Details
- Total value of the fund: $29,064,862
- The date the fund started: 11 April 2022
- Number of investors: 1,026
What are the risks of investing?
Risk Indicator
The risk indicator for the Kernel S&P 500 (NZD Hedged) Fund is rated from 1 (low risk) to 7 (high risk). This rating reflects how much the value of the fund's assets fluctuates. Higher risk generally implies higher potential returns but also greater volatility.
To understand your personal risk tolerance, seek financial advice or use the investor profiler at sorted.org.nz/tools/investor-profiler.
Note: Even the lowest category does not guarantee a risk-free investment, and other risks may not be captured by this rating. The risk indicator is based on 5 years of data (or 1 year 10 months of market index returns if the fund has not existed for 5 years) and is not a guarantee of future performance. It may shift over time.
How has the fund performed?
Past Year Performance
| Metric | Past Year |
|---|---|
| Annual return (after deductions for charges and tax) | 12.55% |
| Annual return (after deductions for charges but before tax) | 13.23% |
| Market index annual return (reflects no deduction for charges and tax) | 13.90% |
The market index annual return is based on the annual return of the S&P 500 Dynamic Hedged 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 Data
- 31-Mar-24: Fund return 7.89%, Market index return 7.63%
- 31-Mar-25: Fund return 28.87%, Market index return 29.27%
- Average Annual Return (up to 30 June 2025): Fund return 10.94%, Market index return 11.31%
The graph illustrates the annual returns for each year ending 31 March since the fund's inception, after fund charges and tax. The final bar represents the average annual return up to 30 June 2025. This data does not predict future performance. Returns are shown after tax at the highest prescribed investor rate (PIR) for a New Zealand resident; your actual tax rate may be lower.
Example Investor Scenario
Consider an investor, Emma, who held $10,000 in the fund from 1 July 2024 without further contributions. By 30 June 2025, after fund charges, Emma received a return of $1,323 (13.23% of her initial investment). After tax, Emma's total return for the period was $1,255.
What fees are investors charged?
Investors are charged fund charges, inclusive of GST. Small differences in fees can significantly impact long-term investment growth. Investors are not charged individual action fees for specific actions like withdrawals.
Year to 31 March 2025 Fees
| 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% |
What does the fund invest in?
Actual Investment Mix
This shows the types of assets the fund currently invests in:
- International equities: 99.52%
- Cash and cash equivalents: 0.48%
Target Investment Mix
This shows the intended asset allocation for the fund:
| 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
The top 10 investments constitute 102.60% of the fund's net asset value.
| Name | % of fund's net asset value | Type | Country | Credit rating (if applicable) |
|---|---|---|---|---|
| Vanguard S&P 500 ETF | 99.52% | International equities | United States | |
| New Zealand Dollar | 1.66% | Cash and cash equivalents | New Zealand |
Currency Hedging
The fund is hedged back to New Zealand dollars. As at 30 June 2025, the hedging ratio was 99.21%.
Key Personnel
This section lists individuals influential in 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
Market index returns and actual returns were used to calculate the risk indicator, as the fund has not been operational for a full five years. Consequently, the risk indicator might offer a less precise reflection of potential future volatility. The risk indicator calculation utilized 1 year and 10 months of market index returns.
