Kernel funds pay out a quarterly distribution to investors in April, July, October and December. This is based on the dividends received from the underlying companies in which the Kernel funds invest.

Today, we have paid out the October distribution to each investor based on their preference of cash payment or distribution reinvestment. Ultimately the unit value is reduced by the cash amount (because it is already part of the fund’s value), but it provides investors with the choice of benefits from compounding through reinvestment, rebalancing or using the cash for other purposes. It also helps us operate an efficient structure. The details of the distributions per fund are below.

This is the first quarter that the new Global funds have paid out a distribution, having launched during the quarter. The distribution reflects the investments made by the funds since inception, as if an investor held the companies comprising the fund for the whole quarter, and as a result comprise a significant amount of capital distribution. This is aligned to the general treatment of all Kernel funds and are aligned to the FIF tax regime which depends on an investors valuation not their income received.

The figures below exclude any capital growth and the tax on the income allocated to you, which will need to be paid in April or when you sell out of the fund. This delayed tax payment is one of the benefits of our product design. It also excludes any change in the amount of dividends paid by companies in the fund.

We distribute capital as part of providing investors in the fund the equivalent return they would receive from owning the underlying companies directly.

Kernel NZ 20 Fund

The distribution amounts to 0.741% of the current value of the NZ 20 Fund. This is based on dividends received from 10 of the underlying 20 companies. Based on current valuations and historic dividends, the indicative annual dividend yield is 2.04%.

This distribution comprises 88% income received or accrued and 12% capital.

Kernel NZ Small & Mid Cap Opportunities Fund

The distribution amounts to 0.661% of the current value of the NZ Small & Mid Cap Opportunities Fund. 17 companies of the 31 dividend paying companies in the fund paid out. Based on current valuations and historic dividends, the indicative annual dividend yield is 2.13%.

This distribution comprises 97% income received or accrued and 3% capital.

Kernel NZ Commercial Property Fund

The distribution amounts to 6.86% of the current value of the NZ Commercial Property Fund. Based on current valuations and historic dividends, the indicative annual dividend yield is 4.11%.

This distribution comprises 84% income received or accrued and 16% capital.

Kernel S&P Global 100 Fund

The distribution amounts to 0.337% of the current value of the Kernel S&P Global 100 Fund. The index as a benchmark is showing an indicative 12 month dividend of 2.42%. This distribution comprises 30% income received and 70% capital.

Kernel Global Infrastructure Fund

The distribution amounts to 0.647% of the current value of the Kernel Global Infrastructure Fund. The index as a benchmark is showing an indicative 12 month dividend of 4.02%. This distribution comprises 11% income received and 89% capital.

Kernel S&P Global Dividend Aristocrats Fund

The distribution amounts to 1.069% of the current value of the Kernel Global Dividend Aristocrats Fund. The index as a benchmark is showing an indicative 12 month dividend of 6.68%. This distribution comprises 22% income received and 78% capital.

Should you have any questions, please let us know.

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