Kernel Emerging Markets 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 Emerging Markets Fund, aiding comparison with other funds. Kernel Wealth Limited prepared this update in accordance with the Financial Markets Conduct Act 2013. Information is unaudited and may be updated.
Description of this fund
The Kernel Emerging Markets Fund's investment objective is to provide a return (before tax, fees, and expenses) that closely matches the return on the S&P Emerging BMI (NZD) index.
Fund Details
- Total value of the fund: $5,836,680
- Date the fund started: 11 Nov 2024
What are the risks of investing?
Risk indicator for the Kernel Emerging Markets Fund
The risk indicator is rated from 1 (low) to 7 (high), reflecting the volatility of the fund's assets. Higher risk generally implies higher potential returns but also greater fluctuations. For personal risk assessment, consult financial advice or use the investor profiler at sorted.org.nz/tools/investor-profiler.
Note: The lowest category does not signify a risk-free investment, and other risks exist beyond this rating.
This risk indicator is not a guarantee of future performance. It is based on 5 years of returns data (or available data if less than 5 years). The indicator may shift over time. Refer to the Product Disclosure Statement - Equity Funds for Kernel Funds for comprehensive risk information.
Risk Levels:
Potentially Lower Returns [1] [2] [3] [4] [5] [6] [7] Potentially Higher Returns
How has the fund performed?
| Metric | Past Year |
|---|---|
| Annual return (after deductions for charges and tax) | Not Applicable |
| Annual return (after deductions for charges but before tax) | Not Applicable |
| Market index annual return (reflects no deduction for charges and tax) | 15.84% |
The market index annual return is based on the S&P Emerging BMI Index (NZD). More information is available in the 'Statement of Investment Policy and Objectives' document on the offer register at www.disclose-register.companiesoffice.govt.nz.
What fees are investors charged?
Investors are charged fund charges. For the year to 31 March 2025, these were:
| Charge Description | % per annum of fund's net asset value |
|---|---|
| Total fund charges | 0.45% |
| Which are made up of: | |
| Total management and administration charges | 0.45% |
| Including: | |
| Manager's basic fee | 0.45% |
| Other management and administration charges | 0.00% |
Individual action fees are not charged. All fees include GST. Small differences in fees can significantly impact long-term investment returns.
Example of how this applies to an investor
Emma invested $10,000 on 11 November 2024. By 30 June 2025, after fund charges, her return was $671 (6.71% of her initial investment). Her total return after tax was $591.
What does the fund invest in?
Actual investment mix
The fund's assets are composed of:
- Cash and cash equivalents: 0.19%
- International equities: 100.19%
Target investment mix
The fund generally intends to invest in the following asset categories:
| 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) |
|---|---|---|---|---|
| SPDR Portfolio Emerging Markets ETF | 100.19% | International equities | United States | |
| US Dollar | 0.06% | Cash and cash equivalents | United States |
The top 10 investments constitute 100.25% of the fund's net asset value.
Currency hedging: The fund is not hedged for currency.
Key personnel
This section shows the directors and employees most 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 Funds, is available on the offer register at www.disclose-register.companiesoffice.govt.nz.
Notes
Market index returns and actual returns were used for the risk indicator, as the fund has not existed for 5 years. This may result in a less reliable indicator of potential future volatility. The risk indicator calculation uses 4 years and 5 months of market index returns.
