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How do the Kernel fund groupings work?
How do the Kernel fund groupings work?
Lovelyn avatar
Written by Lovelyn
Updated over 2 weeks ago

Broadly speaking, we've grouped our funds into three categories which are:

  • Core index funds

  • Specialty funds

  • Active funds

To help you understand how our pricing works and the way we grouped our funds, we’ve outlined where each fund fits in each group and how much they cost below.

Core index funds

The bulk of our funds are index funds, meaning they track an index with the aim of matching that respective index’s performance. Read more on how an index fund works.

Within our index fund range, we consider the following funds to be “core”, in other words, suitable to make up anywhere from 70-90% of your investment portfolio.

Our core index funds include:

  • NZ 20

  • NZ Commercial Property

  • NZ Small & Mid Cap Opportunities

  • Global 100

  • Global 100 (NZD Hedged)

  • Global Infrastructure

  • Global Infrastructure (NZD Hedged)

  • S&P Global Dividend Aristocrats

  • S&P 500 Unhedged

  • S&P 500 (NZD Hedged)

  • High Growth

  • NZ 50 ESG Tilted

  • Global Property (NZD Hedged)

  • Global ESG

  • Global ESG (NZD Hedged)

  • US Bond

All core funds have an annual management fee of 0.25%, with the exception of our latest addition, the Kernel US Bond Fund, which has an annual management fee of 0.30%.

Specialty index funds

Specialty funds are those intended to make up a smaller portion of your investment portfolio, generally around 5-10%. These can be thematic funds i.e. follow a specific theme or economic trend.

Our specialty index funds include:

  • S&P Global Clean Energy

  • S&P Kensho Moonshots Innovation

  • S&P Kensho Electric Vehicle Innovation

  • Emerging Markets

All specialty index funds have an annual management fee of 0.45%.

Active funds

As we have broadened our fund range, we have introduced new asset types, such as fixed income, and therefore added actively managed funds into the mix. These are funds that are managed by our in-house portfolio manager, Matthew Winton, with the aim of beating the fund’s corresponding benchmark index’s performance.

These funds can be used as “core” funds in the same way as mentioned above.

Our active funds include:

  • Cash Plus

  • Balanced

  • NZ Bond

  • March 2027 NZ Bond

  • March 2029 NZ Bond

Annual management fees of the funds are as follows:

  • Cash & Balanced - 0.25%

  • NZ Bond - 0.40%

  • March 2027 & March 2029 NZ Bond – 0.50%.

What about the diversified funds?

Throughout our website, we refer to three diversified funds:

  • Kernel High Growth

  • Kernel Balanced

  • Kernel Cash Plus

We have grouped these three funds to spotlight a range of broadly diversified funds, often used as a starting point for many investors.

The High Growth Fund is an index fund, whereas the Balanced and Cash Funds are active funds. This is because of the underlying fund assets - the High Growth Fund is made up of 98%+ equities, whereas the Balanced and Cash Plus Fund include fixed income assets and are therefore actively managed.

All three of these funds have an annual management fee of 0.25%.

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