Kernel High Growth Fund Update
Quarter ended 30 June 2025
Published: 28 July 2025
Purpose of this Update
This document details the performance of the Kernel High Growth Fund and the fees charged. It is designed to help 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.
Description of this Fund
The Kernel High Growth Fund is a diversified fund composed of several Kernel Funds, with over 98% invested in growth assets like shares and listed property. This globally diversified fund aims to help investors build long-term wealth by mitigating volatility through geographical and sector diversification. It is suitable for investors with an investment horizon of at least 5 years.
Total value of the fund: $357,037,726
Date the fund started: 11 April 2022
How has the fund performed?
| Performance Metric | Past Year |
|---|---|
| Annual return (after deductions for charges and tax) | 12.08% |
| Annual return (after deductions for charges but before tax) | 13.06% |
| Market index annual return (reflects no deduction for charges and tax) | 13.76% |
The market index annual return is based on the composite of market indices matching the underlying asset allocation. 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 Description
The annual return graph illustrates the fund's performance. It shows the return after fund charges and tax for each year ending 31 March since the fund started. The last bar represents the average annual return since the fund's inception up to 30 June 2025. For example, returns for the year ending 31 March 2024 were 8.40% and for the year ending 31 March 2025 were 9.56%. The average annual return shown is 12.26%. It is important to note that 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; actual tax rates may be lower.
What are the risks of investing?
Risk Indicator
The risk indicator for the Kernel High Growth Fund is rated from 1 (low risk) to 7 (high risk). This rating reflects the volatility of the fund's assets, indicating how much their value tends to increase or decrease. Higher risk generally correlates with higher potential returns but also greater fluctuations.
To understand your personal risk tolerance, you can seek financial advice or use the investor profiler tool at sorted.org.nz/tools/investor-profiler.
Important Note: Even the lowest risk category does not guarantee a risk-free investment. Other risks not captured by this rating may exist. The risk indicator is based on 5 years of returns data1 (or market index returns if the fund has not existed for 5 years). For this fund, it uses 1 year and 10 months of market index returns. This means the indicator may be less reliable for predicting future volatility. The indicator is subject to change over time.
What fees are investors charged?
Investors in the Kernel High Growth Fund incur fund charges. For the year ending 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, such as withdrawals. All fees include GST. Small differences in fees can significantly impact long-term investment growth.
What does the fund invest in?
Actual Investment Mix
The fund's assets are allocated as follows:
- Cash and cash equivalents: 1.77%
- Australasian equities: 30.17%
- International equities: 63.45%
- Listed property: 4.61%
Note: Units of the Kernel Cash Plus Fund held within the Kernel High Growth Fund are classified as Cash and Cash equivalents.
Target Investment Mix
The fund generally aims for the following asset allocation:
| Asset Category | Target Asset Mix |
|---|---|
| Cash and cash equivalents | 2.00% |
| New Zealand fixed interest | - |
| International fixed interest | - |
| Australasian equities | 29.40% |
| International equities | 63.60% |
| Listed property | 5.00% |
| Unlisted property | - |
| Commodities | - |
| Other | - |
Top 10 Investments
The top 10 investments constitute 32.28% of the fund's net asset value:
| Name | % of fund's net asset value | Type | Country |
|---|---|---|---|
| Nvidia Ord | 5.30% | International equities | United States |
| Microsoft | 5.08% | International equities | United States |
| Apple Inc | 4.26% | International equities | United States |
| Fisher & Paykel Healthcare Corp Ltd | 3.48% | Australasian equities | New Zealand |
| Auckland International Airport | 2.98% | Australasian equities | New Zealand |
| Alphabet | 2.82% | International equities | United States |
| Amazon.com Inc | 2.65% | International equities | United States |
| Infratil Limited | 2.31% | Australasian equities | New Zealand |
| Meridian Energy | 1.71% | Australasian equities | New Zealand |
| EBOS | 1.69% | Australasian equities | New Zealand |
Currency Hedging
The fund employs currency hedging strategies. Specifically, it had allocations to:
- Kernel Global Infrastructure (NZD Hedged) Fund (5.12% allocation, 99.12% hedged to NZD).
- Kernel Global Property (NZD Hedged) Fund (4.61% allocation, 100.30% hedged to NZD).
- Kernel S&P Global 100 (NZD Hedged) Fund (29.75% allocation, 99.60% hedged to NZD).
Key Personnel
The following individuals have significant 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 |
| Rhea Prasad | Portfolio Manager | 2 | 7 | Investment Dealer, Pie Funds | 1 | 3 |
Further Information
Additional information, including the Product Disclosure Statement - Diversified & Other Funds for the Kernel Funds, can be found on the offer register at www.disclose-register.companiesoffice.govt.nz.
Example of how this applies to an investor
Emma had $10,000 in the fund on 1 July 2024 and did not make any further contributions. On 30 June 2025, Emma received a return after fund charges were deducted of $1,306 (that is 13.06% of her initial $10,000). This gives Emma a total return after tax of $1,208 for the period.
