Kernel NZ Small & Mid Cap Opportunities Fund Update
Fund update for the quarter ended 30 June 2025
This fund update was first made publicly available on 28 July 2025.
Purpose of this Update
This document details the performance and fees of the Kernel NZ Small & Mid Cap Opportunities Fund, aiding comparison with other funds. 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 the Fund
The Kernel NZ Small & Mid Cap Opportunities Fund invests in financial products listed on the NZX and aims to track the S&P/NZX Emerging Opportunities Index.
Total value of the fund: $40,960,765
Date the fund started: 28 August 2019
Risks of Investing
The risk indicator for the Kernel NZ Small & Mid Cap Opportunities Fund 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 but also greater fluctuations. For personal risk assessment, consult a financial advisor or use the 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 based on 5 years of returns data up to 30 June 2025 and may change over time. Refer to the Product Disclosure Statement - Equity Funds for comprehensive risk information.
Fund Performance
Past Year Returns (after deductions for charges and tax)
- Annual return: 29.18%
- Annual return (before tax): 30.56%
- Market index annual return (before charges and tax): 30.93%
The market index annual return is based on the S&P/NZX Emerging Opportunities Index. Further details 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 annual return after fund charges and tax for each year ending 31 March since the fund's inception. The final bar represents the average annual return up to 30 June 2025. Past performance is not indicative of future results. Returns are shown after tax at the highest prescribed investor rate (PIR) for New Zealand residents; your personal tax rate may differ.
Graph Data Description:
- 31-Mar-21: Fund 61.83%, Market Index 62.31%
- 31-Mar-22: Fund 2.24%, Market Index 2.24%
- 31-Mar-23: Fund -25.83%, Market Index -24.72%
- 31-Mar-24: Fund 8.70%, Market Index 7.30%
- 31-Mar-25: Fund 1.06%, Market Index 1.34%
- Average Annual Return: Fund 0.78%, Market Index 0.10%
Fees Charged to Investors
Investors in the Kernel NZ Small & Mid Cap Opportunities 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 (e.g., withdrawals). All fees include GST. Small differences in fees can significantly impact long-term investment growth.
Fund Investment Details
Actual Investment Mix
The fund's assets are invested as follows:
- Australasian equities: 100.00%
- Cash and cash equivalents: 0.00%
This mix shows the types of assets the fund currently holds.
Target Investment Mix
The fund generally intends to invest in the following asset 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 Investor Return
An investor with $10,000 in the fund from 1 July 2024 to 30 June 2025, without further contributions, received a return of $3,056 after fund charges (30.56% of initial investment). The total return after tax was $2,918.
Top 10 Investments
The top 10 investments constitute 55.04% of the fund's net asset value.
| Name | % of fund's net asset value | Type | Country |
|---|---|---|---|
| Vital Healthcare Property | 6.74% | Australasian equities | New Zealand |
| Argosy Property Ltd | 6.74% | Australasian equities | New Zealand |
| Skellerup Holdings Ltd | 6.73% | Australasian equities | New Zealand |
| Channel Infrastructure NZ Ltd | 5.71% | Australasian equities | New Zealand |
| Sky City Entertainment Group Limited | 5.20% | Australasian equities | New Zealand |
| Fonterra Shareholders' Fund | 5.15% | Australasian equities | New Zealand |
| Heartland Group Holdings Limited | 4.99% | Australasian equities | New Zealand |
| Vista Group International Limited | 4.87% | Australasian equities | New Zealand |
| Stride Property Limited | 4.61% | Australasian equities | New Zealand |
| Scales Corporation Limited | 4.30% | Australasian equities | New Zealand |
Currency Hedging
As the fund exclusively invests in NZ dollar-denominated assets, currency hedging is not required.
Key Personnel
The following individuals influence the fund's investment decisions:
| Name | Current Position | Years | Months | Previous Position | Years | Months |
|---|---|---|---|---|---|---|
| Dean Anderson | Chief Executive | 6 | 0 | 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 found on the offer register at www.disclose-register.companiesoffice.govt.nz.
