What is the purpose of this update?
This document details the performance of the Kernel S&P Global 100 (NZD Hedged) 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 provided is not audited and may be subject to updates.
Description of this fund
The Kernel Global 100 (NZD Hedged) Fund aims to provide a return, before tax, fees, and expenses, that closely matches the return on the S&P Global 100 Ex-Controversial Weapons NZD Hedged Index.
Total value of the fund: $170,064,365
The date the fund started: 02 November 2022
What are the risks of investing?
Risk indicator for the Kernel S&P Global 100 (NZD Hedged) Fund:
The risk indicator is rated from 1 (low) to 7 (high). This rating reflects the volatility of the fund's assets. Higher risk generally corresponds to higher potential returns over time, but also greater fluctuations. To understand your personal attitude to risk, you can seek financial advice or use the investor profiler tool at sorted.org.nz/tools/investor-profiler.
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 risk indicator is not a guarantee of future performance. It is based on return data for the 5 years leading up to 30 June 2025. While risk indicators are generally stable, they can change over time. The indicator will be updated in future fund updates. For more information on the risks associated with investing in this fund, please refer to the Product Disclosure Statement - Equity Funds for the Kernel Funds.
How has the fund performed?
| Past Year | |
|---|---|
| Annual return (after deductions for charges and tax) | 9.97% |
| Annual return (after deductions for charges but before tax) | 10.39% |
| Market index annual return (reflects no deduction for charges and tax) | 10.89% |
The market index annual return is based on the S&P Global 100 Ex-Controversial Weapons NZD Hedged Index. Further details about the market index are 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 graph illustrates the fund's return after charges and tax for each year ending 31 March since its inception. The final bar represents the average annual return from the fund's start date up to 30 June 2025. Please note that past performance is not indicative of future results. Returns are presented after tax at the highest prescribed investor rate (PIR) for an individual New Zealand resident; your actual tax rate may be lower.
Graph Data Summary:
- 31-Mar-24: Fund return 30.02%, Market index return 8.60%
- 31-Mar-25: Fund return 31.33%, Market index return 8.90%
- Average Annual Return: Fund 21.72%, Market index 23.82%
What fees are investors charged?
Investors in the Kernel S&P Global 100 (NZD Hedged) Fund incur fund charges. For the year ending 31 March 2025, these were:
| 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 are inclusive of GST. Small differences in fees and charges can significantly impact investment returns over the long term.
What does the fund invest in?
Actual investment mix: This shows the types of assets the fund currently invests in.
Asset Allocation Summary: International equities represent 99.63% of the fund's investments. Australasian equities account for 0.40%, and cash and cash equivalents make up -0.03%.
Example of how this applies to an investor: If an investor, Emma, had $10,000 in the fund from 1 July 2024 to 30 June 2025 without further contributions, she would have received a return of $1,039 after fund charges (10.39% of her initial investment). After tax, her total return for the period would be $997.
Target investment mix: This outlines the fund's intended asset allocation.
| 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: These are the largest holdings within the fund.
| Name | % of fund's net asset value | Type | Country | Credit rating (if applicable) |
|---|---|---|---|---|
| Nvidia Ord | 12.47% | International equities | United States | |
| Microsoft | 11.96% | International equities | United States | |
| Apple Inc | 9.91% | International equities | United States | |
| Amazon.com Inc | 6.71% | International equities | United States | |
| Alphabet | 6.01% | International equities | United States | |
| Broadcom Inc | 4.19% | International equities | United States | |
| JPMorgan Chase & Co | 2.61% | International equities | United States | |
| Eli Lilly ORD | 1.98% | International equities | United States | |
| Exxon Mobil Corporation | 1.50% | International equities | United States | |
| Mastercard Inc Class A Ord | 1.47% | International equities | United States |
The top 10 investments collectively represent 58.81% of the fund's net asset value.
Currency hedging: The fund is hedged back to New Zealand dollars. As at 30 June 2025, the hedging ratio was 99.60%.
Key personnel
This section lists the directors and employees who have significant influence over 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, can be obtained from the offer register at www.disclose-register.companiesoffice.govt.nz.
Notes
The risk indicator was calculated using market index returns (as well as actual returns) because the fund has not been in existence for the full 5-year period required. Consequently, the risk indicator might provide a less reliable indication of the fund's potential future volatility. The calculation for this fund's risk indicator utilized 2 years and 5 months of market index returns.
