Purpose of this Update
This document details the performance and fees charged for the Kernel Global Infrastructure (NZD Hedged) Fund. 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 is not audited and may be subject to updates.
Description of the Fund
The Kernel Global Infrastructure (NZD Hedged) Fund offers diversified exposure to globally domiciled, pure-play infrastructure companies. The underlying index encompasses all sectors of the infrastructure market, requiring companies to derive at least 70% of their cash flows from infrastructure business lines. The fund is hedged to the New Zealand Dollar and is suitable for investors with an investment time horizon of at least 5 years.
Total value of the fund: $171,718,259
The date the fund started: 28 July 2022
How has the fund performed?
| Past Year | |
|---|---|
| Annual return (after deductions for charges and tax) | 21.51% |
| Annual return (after deductions for charges but before tax) | 22.07% |
| Market index annual return (reflects no deduction for charges and tax) | 22.57% |
The market index annual return is based on the annual performance of the Dow Jones Brookfield Global Infrastructure (NZD Hedged) 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.
The annual return graph illustrates the fund's performance and the market index performance for years ending 31 March. The final bar represents the average annual return up to 30 June 2025. It is important to note that past performance does not indicate future results. Returns are presented after tax at the highest prescribed investor rate (PIR) for an individual New Zealand resident.
What are the risks of investing?
The risk indicator for the Kernel Global Infrastructure (NZD Hedged) Fund is rated from 1 (low risk) to 7 (high risk). This rating reflects the volatility of the fund's assets, with higher risk generally associated with higher potential returns but also greater fluctuations. Investors can assess their personal risk tolerance via financial advice or online tools like sorted.org.nz/tools/investor-profiler.
It is important to understand that even the lowest category does not signify a risk-free investment, and other risks may not be captured by this indicator. The indicator is not a guarantee of future performance and is based on 5 years of returns data up to 30 June 2025. Due to the fund's shorter existence, the risk indicator uses 2 years and 1 month of market index returns, which may make it a less reliable indicator of potential future volatility.
What fees are investors charged?
Investors in the Kernel Global Infrastructure (NZD Hedged) Fund are charged fund charges. In the year to 31 March 2025, these were:
| Total fund charges | 0.25% per annum of fund's net asset value |
| 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 (for example, for withdrawing from funds). All fees are inclusive of GST. Small differences in fees and charges can have a significant impact on an investment over the long term.
What does the fund invest in?
Actual investment mix
The actual investment mix shows the fund's asset allocation as of 30 June 2025: Cash and cash equivalents (0.25%), Australasian equities (3.36%), and International equities (96.89%).
Target investment mix
The target investment mix generally aims for International equities (100.00%).
Top 10 investments
| Name | % of fund's net asset value | Type | Country |
|---|---|---|---|
| Enbridge Inc | 7.07% | International equities | Canada |
| American Tower Corp A | 6.46% | International equities | United States |
| Vinci Ord | 5.33% | International equities | France |
| National Grid PLC Ord | 5.11% | International equities | Great Britain |
| The Williams Companies Inc | 4.79% | International equities | United States |
| TC Energy Corporation | 3.63% | International equities | Canada |
| Kinder Morgan Inc | 3.55% | International equities | United States |
| Cheniere Energy Inc | 3.37% | International equities | United States |
| ONEOK Inc | 3.18% | International equities | United States |
| Sempra Energy | 3.09% | International equities | United States |
The top 10 investments make up 45.58% 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 99.12%.
Key personnel
This section shows the directors and employees who have the most influence on the investment decisions of the fund:
| 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
Market index returns, as well as actual returns, have been used to complete the risk indicator, as the fund has not been in existence for 5 years. As a result, the risk indicator may provide a less reliable indicator of the potential future volatility of the fund. The risk indicator for the fund uses 2 years and 1 month of market index returns.
