Kernel KiwiSaver Plan
Kernel NZ Commercial Property Fund
Fund update for the quarter ended 30 June 2025
What is the purpose of this update?
This document informs you about the performance of the Kernel NZ Commercial Property Fund and the fees charged. It is designed to help you compare the fund with other investment options. Kernel Wealth Limited prepared this update in accordance with the Financial Markets Conduct Act 2013. This information is not audited and may be updated.
Description of this fund
The Kernel NZ Commercial Property Fund invests in financial products listed on the NZX and is designed to track the S&P/NZX Real Estate Select Index.
Fund Details
- Total value of the fund: $576,596
- The date the fund started: 11 April 2022
- Number of investors: 57
How has the fund performed?
| Past Year | |
|---|---|
| Annual return (after deductions for charges and tax) | 9.04% |
| Annual return (after deductions for charges but before tax) | 9.77% |
| Market index annual return (reflects no deduction for charges and tax) | 10.04% |
The market index annual return is based on the annual return of the S&P/NZX Real Estate Select 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.
Annual return graph
The annual return graph illustrates fund performance. It displays the annual return after fund charges and tax for the periods ending 31 March 2024 and 31 March 2025, showing the fund's performance relative to the market index. The graph also includes a bar representing the average annual return since the fund's inception up to 30 June 2025. Past performance is not indicative of future results. Returns are presented after tax at the highest prescribed investor rate (PIR) for New Zealand residents.
What are the risks of investing?
The risk indicator for the Kernel NZ Commercial Property Fund is rated from 1 (low) to 7 (high). This rating reflects how much the value of the fund's assets fluctuates. A higher risk rating generally suggests the potential for higher returns over time, but also greater volatility. Investors can assess their personal risk tolerance by seeking financial advice or using the investor profiler 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. The risk indicator is based on historical returns data for 5 years 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 risks, refer to the Product Disclosure Statement - Equity Funds for the Kernel KiwiSaver Plan.
What fees are investors charged?
Investors in the Kernel NZ Commercial Property Fund are charged fund charges. In the year to 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 long-term investment growth.
Example of how this applies to an investor
Emma had $10,000 in the fund on 1 July 2024 and made no further contributions. On 30 June 2025, Emma received a return after fund charges of $977 (9.77% of her initial $10,000). This resulted in a total return after tax of $904 for the period.
What does the fund invest in?
Actual investment mix
This shows the types of assets that the fund invests in.
The actual investment mix shows the fund currently invests 100.00% in Listed property and 0.00% in Cash and cash equivalents.
Target investment mix
This shows the mix of assets that the fund generally intends to invest in.
| Asset Category | Target asset mix |
|---|---|
| Cash and cash equivalents | - |
| New Zealand fixed interest | - |
| International fixed interest | - |
| Australasian equities | - |
| International equities | - |
| Listed property | 100% |
| Unlisted property | - |
| Commodities | - |
| Other | - |
Top 10 Investments
| Name | % of fund's net asset value | Type | Country | Credit rating (if applicable) |
|---|---|---|---|---|
| Precinct Properties New Zealand Limited | 17.64% | Listed property | New Zealand | |
| Goodman Property Trust | 17.08% | Listed property | New Zealand | |
| Kiwi Property Group Limited | 16.76% | Listed property | New Zealand | |
| Property for Industry Limited | 13.72% | Listed property | New Zealand | |
| Vital Healthcare Property | 11.34% | Listed property | New Zealand | |
| Argosy Property Ltd | 11.33% | Listed property | New Zealand | |
| Stride Property Limited | 7.75% | Listed property | New Zealand | |
| Investore Property Limited | 4.38% | Listed property | New Zealand | |
| Cash and Cash Equivalents | 0.00% | Cash and cash equivalents | New Zealand |
The top 10 investments make up 100.00% of the fund's net asset value.
Currency Hedging
As the fund invests only in NZ dollar investments, currency hedging is not required.
Key Personnel
This 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 KiwiSaver Plan, is available on 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 1 year and 10 months of market index returns.
