Kernel KiwiSaver Plan
Kernel Global Property (NZD Hedged) Fund
Fund update for the quarter ended 30 June 2025
What is the purpose of this update?
This document details the performance of the Kernel Global Property (NZD Hedged) Fund and the fees charged during the quarter. It assists in comparing the fund with other investment options. Kernel Wealth Limited prepared this update in accordance with the Financial Markets Conduct Act 2013. The information is unaudited and subject to change.
Description of this fund
The Kernel Global Property (NZD Hedged) Fund invests in globally listed real estate investment trusts (REITs) and real estate operating companies (REOCs). The fund's strategy tilts towards companies with stronger ESG characteristics, as assessed by GRESB. It aims to maintain full hedging back to New Zealand dollars and tracks the Dow Jones Global Select ESG Tilted RESI NZD Hedged Index.
Fund Details
- Total value of the fund: $393,247
- Date the fund started: 11 April 2022
- Number of investors: 75
What are the risks of investing?
Risk indicator for the Kernel Global Property (NZD Hedged) Fund
The risk indicator is rated from 1 (low) to 7 (high). This rating reflects the volatility of the fund's assets, indicating potential for higher returns with greater fluctuations. A rating of 1 signifies lower potential returns and lower volatility, while a rating of 7 signifies higher potential returns and higher volatility.
To understand your personal risk tolerance, seek financial advice or use the investor profiler at sorted.org.nz/tools/investor-profiler.
Note: Even the lowest risk category does not guarantee a risk-free investment, and other risks may not be captured by this rating. The risk indicator is not a guarantee of future performance. It is based on 5 years of returns data (or available market index returns if the fund is younger). While generally stable, risk indicators can change.
How has the fund performed?
Past Year Returns
- Annual return (after deductions for charges and tax): 7.61%
- Annual return (after deductions for charges but before tax): 8.12%
- Market index annual return (reflects no deduction for charges and tax): 8.58%
The market index annual return is based on the Dow Jones Global Select ESG Tilted RESI NZD Hedged Index. More information is 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 annual returns for the fund and the market index for the periods ending 31 March 2024 and 31 March 2025, along with the average annual return since the fund's inception up to 30 June 2025. The data shows the fund's performance relative to its benchmark index. Returns are net of fund charges and tax at the highest prescribed investor rate (PIR) for New Zealand residents; individual tax rates may vary.
What fees are investors charged?
Investors pay fund charges. For the year ending 31 March 2025, these were:
- Total fund charges: 0.25% per annum of fund's net asset value
- Breakdown:
- Total management and administration charges: 0.25%
- Manager's basic fee: 0.25%
- Other management and administration charges: 0.00%
Investors are not charged individual action fees for specific transactions. All fees include GST. Small differences in fees can significantly impact long-term investment growth.
What does the fund invest in?
Actual investment mix
The fund's assets are allocated as follows: 99.98% in listed property and 0.02% in cash and cash equivalents.
Target investment mix
The fund generally targets the following asset allocation: Listed property (100%).
Top 10 investments
| Name | % of fund's net asset value | Type | Country |
|---|---|---|---|
| ProLogis Inc | 7.58% | Listed property | United States |
| Digital Realty Trust | 6.43% | Listed property | United States |
| Welltower Inc | 5.77% | Listed property | United States |
| Public Storage | 5.19% | Listed property | United States |
| Simon Property Group A | 4.61% | Listed property | United States |
| Ventas Inc | 3.99% | Listed property | United States |
| AvalonBay Communities Inc | 3.19% | Listed property | United States |
| Essex Property Trust | 2.39% | Listed property | United States |
| Mitsui Fudosan Co | 2.31% | Listed property | Japan |
| Equinix REIT Ord | 2.29% | Listed property | United States |
The top 10 investments constitute 43.75% 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 100.30%.
Key personnel
The following individuals 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 |
| Rhea Prasad | Portfolio Manager | 2 | 7 | Investment Dealer, Pie Funds | 1 | 3 |
Example of how this applies to an investor
An investor, Emma, with $10,000 in the fund from 1 July 2024, with no further contributions, received a return of $812 (8.12% of her initial investment) after fund charges by 30 June 2025. After tax, her total return for the period was $761.
Further information
Additional information, including the Product Disclosure Statement - Equity Funds for the Kernel KiwiSaver Plan, is available on the offer register at www.disclose-register.companiesoffice.govt.nz.
Notes
The risk indicator calculation used market index returns and actual fund returns, as the fund had not been in existence for the full 5-year period required. This may make the indicator less reliable for predicting future volatility. The calculation period for the risk indicator included 1 year and 10 months of market index returns.
