Kernel Cash Plus Fund Update
Fund update for the quarter ended 30 June 2025
What is the purpose of this update?
This document details the performance of the Kernel Cash Plus Fund and the fees charged. It is designed to help investors compare the fund with other investment options. Kernel Wealth Limited prepared this update in accordance with the Financial Markets Conduct Act 2013. The information presented is not audited and may be subject to future updates.
Description of this fund
The Kernel Cash Plus Fund aims to provide a return, before tax, fees, and expenses, that closely matches the return of the Bloomberg NZ Bond Bank Bill Index. The fund's total value as of the reporting period was $184,503,980. The fund commenced operations on 07 November 2022.
What are the risks of investing?
Risk indicator for the Kernel Cash Plus Fund
The risk indicator is rated from 1 (low) to 7 (high). This rating reflects the volatility of the fund's assets, indicating that higher risk generally correlates with higher potential returns but also greater fluctuations. Investors can assess their personal risk tolerance by seeking financial advice or using online tools like the profiler at sorted.org.nz/tools/investor-profiler.
The risk indicator is presented as a scale from 1 (Lower Risk) to 7 (Higher Risk). 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.
It is important to note that even the lowest risk category does not guarantee a risk-free investment, and other risks not captured by this rating may exist. This indicator is not a guarantee of future performance. As the fund has not been in existence for five years, the risk indicator is based on market index data for the period, using 2 years and 5 months of market index returns. Risk indicators may shift over time.
How has the fund performed?
| Performance Metric | 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 annual return of the Bloomberg NZ Bond Bank Bill 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.
A bar chart illustrating the annual returns for the Kernel Cash Plus Fund and the Bloomberg NZ Bond Bank Bill Index. The chart displays returns after fund charges and tax for each year ending March 31st since the fund's inception, with the final bar showing the average annual return up to June 30, 2025. The fund's returns are depicted in blue, and the market index returns in green. For the year ending March 2025, the fund returned 4.18% after tax and charges, while the market index returned 5.12%. The average annual return for the fund since inception is 5.16%.
Important: This performance data does not predict future fund performance. Returns are shown after tax at the highest prescribed investor rate (PIR) for an individual New Zealand resident; your actual tax rate may be lower.
What fees are investors charged?
Investors in the Kernel Cash Plus Fund incur fund charges. For the year ending 31 March 2025, these were:
| Fee Component | % 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 are inclusive of GST. It is noted that small differences in fees and charges can significantly impact investment outcomes over the long term.
What does the fund invest in?
Actual investment mix
A pie chart detailing the fund's actual investment mix, showing that 89.28% of assets are in Cash and cash equivalents and 10.72% are in New Zealand fixed interest.
Target investment mix
| 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 | - |
The fund is not hedged for currency.
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 collectively represent 51.93% of the fund's net asset value.
Key personnel
This section outlines the directors and employees who 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 |
| 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 the Kernel Funds, can be found on the offer register at www.disclose-register.companiesoffice.govt.nz.
