Whilst we can't advise which specific fund to choose, we can provide some context as to what the funds within the Kernel KiwiSaver Plan are designed for.
Ultimately the investment that is most suitable for you will depend on your personal situation, appetite for risk and goals.
With the Kernel KiwiSaver Plan, you can choose between our three diversified funds - High Growth, Balanced or Cash Plus - or you can choose to create a custom KiwiSaver Plan with a mix of the Kernel funds.
Kernel High Growth Fund
Do you have a long-term investment horizon (or timeframe)? Are you wanting to aggressively invest your KiwiSaver balance?
Most Kernel customers who are taking a long-term or aggressive approach to their balance choose to invest in the Kernel High Growth Fund. This offering is an aggressive fund with 98%+ holdings in equities.
The target asset allocations for this fund are as follows:
Global ESG - 29.30%
Global 100 (NZD Hedged) - 29.30%
Global Property (NZD Hedged) - 5.00%
NZ 20 - 23.50%
Cash Plus - 2%
Kernel Balanced Fund
The Balanced Fund is designed for investors with a medium to high-risk appetite, looking for capital growth over the next 3-5 years. This fund targets an asset allocation of 60% equities and 40% fixed interest, investing mainly in several of the other Kernel funds.
The target asset allocations for this fund are as follows:
International fixed interest – 18%
NZ fixed interest - 17%
Cash Plus – 5%
Global ESG – 18%
Global 100 (NZD Hedged) – 18%
NZ 20 – 14%
Global Property – 3%
Kernel Cash Plus Fund
The Kernel Cash Plus is designed to for investors who are working towards a short-term goal, with an investment horizon of 1-3 years.
The fund aims to provide investors with a higher return than your average savings account. It's underlying assets, as selected by our Portfolio Manager, include cash and cash equivalents (eg. bond, term deposits and more).
Creating a custom Kernel KiwiSaver Plan
The ability to customise the Kernel KiwiSaver Plan was designed primarily for advanced investors. It enables investors to follow a core-satellite investing strategy, whereby the core of their balance is invested in "core index funds", with a tilt toward a specific theme, sector or asset class.
By customising the Kernel KiwiSaver Plan, investors are also given the option to shape their balance the way they see the world - whether that is with a sustainable lens, solely towards the NZ economy or otherwise.
If you have any further questions about the Kernel KiwiSaver Plan, check out our KiwiSaver FAQs or get in touch with our team at support@kernelwealth.co.nz.