Kernel Funds
Kernel NZ 20 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 NZ 20 Fund, aiding comparison with other funds. Kernel Wealth Limited prepared this update in accordance with the Financial Markets Conduct Act 2013. This information is not audited and may be updated.
How has the fund performed?
| Metric | Value |
|---|---|
| Annual return (after deductions for charges and tax) | 4.17% |
| Annual return (after deductions for charges but before tax) | 5.06% |
| Market index annual return (reflects no deduction for charges and tax) | 5.12% |
Annual return graph
The annual return graph illustrates the fund's yearly performance after charges and tax, contrasted with the market index's annual return (before charges and tax). Data is presented for each year ending 31 March since the fund's inception. The final bar represents the average annual return up to 30 June 2025. It is crucial to understand that past performance does not guarantee future results. All returns are presented after tax at the highest prescribed investor rate (PIR) for an individual New Zealand resident; your personal tax rate may be lower.
Description of this fund
The Kernel NZ 20 Fund invests in financial products listed on the NZX and is designed to track the S&P/NZX 20 Index.
Total value of the fund: $134,749,638
The date the fund started: 28 August 2019
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.
What are the risks of investing?
Risk indicator for the Kernel NZ 20 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 correlates with higher potential returns over time, but also involves greater fluctuations. For guidance on personal risk tolerance, individuals are encouraged to seek financial advice or use resources like sorted.org.nz/tools/investor-profiler.
Please note that even the lowest risk category does not guarantee a risk-free investment, and other risks may not be fully captured by this indicator.
This risk indicator is not a guarantee of the fund's future performance. It is based on returns data from the 5 years ending 30 June 2025. While risk indicators tend to be stable, they can change. The indicator will be updated in future fund updates. For comprehensive details on investment risks, consult the Product Disclosure Statement - Equity Funds for Kernel Funds.
What fees are investors charged?
Investors in the Kernel NZ 20 Fund are subject to fund charges. For the year ending 31 March 2025, the charges were:
| Charge Description | Percentage 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 (e.g., withdrawing from funds). All fees are inclusive of GST. Small differences in fees and charges can have a significant impact on your investment over the long term.
What does the fund invest in?
Actual investment mix
The actual investment mix shows the current asset allocation of the fund: 100.00% Australasian equities and 0.00% Cash and cash equivalents.
Target investment mix
| Asset Category | Target Asset Mix |
|---|---|
| Cash and cash equivalents | |
| New Zealand fixed interest | |
| International fixed interest | |
| Australasian equities | 100.00% |
| International equities | |
| Listed property | |
| Unlisted property | |
| Commodities | |
| Other |
Example of how this applies to an investor
Emma invested $10,000 in the fund on 1 July 2024 and made no further contributions. On 30 June 2025, she received a return of $506 after fund charges, representing 5.06% of her initial investment. Her total return after tax for the period was $417.
Top 10 investments
| Name | % of fund's net asset value | Type | Country | Credit rating (if applicable) |
|---|---|---|---|---|
| Fisher & Paykel Healthcare Corp Ltd | 14.85% | Australasian equities | New Zealand | |
| Auckland International Airport | 12.58% | Australasian equities | New Zealand | |
| Infratil Limited | 9.88% | Australasian equities | New Zealand | |
| Meridian Energy | 7.28% | Australasian equities | New Zealand | |
| EBOS | 7.22% | Australasian equities | New Zealand | |
| Contact Energy Ltd | 6.95% | Australasian equities | New Zealand | |
| The a2 Milk Company Ltd | 6.01% | Australasian equities | New Zealand | |
| Mainfreight Limited | 5.53% | Australasian equities | New Zealand | |
| Spark New Zealand Limited (NZ Registered) | 4.42% | Australasian equities | New Zealand | |
| Mercury NZ Limited | 3.91% | Australasian equities | New Zealand |
The top 10 investments constitute 78.63% of the fund's net asset value.
Currency hedging: As the fund invests solely in NZ dollar denominated investments, currency hedging is not required.
Key personnel
This section highlights the directors and employees who significantly influence the fund's investment decisions:
| Name | Current Position | Current Tenure | Previous Position | Previous Tenure | ||
|---|---|---|---|---|---|---|
| Years | Months | 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) | 5 | 7 |
| 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 Kernel Funds, can be obtained from the offer register at www.disclose-register.companiesoffice.govt.nz.
Notes
1. Fund returns have been used to complete the risk indicator, as the fund has been in existence for 5 years.
