To help you differentiate between our funds, we have grouped them into two main types of funds, inspired by a core-satellite investing approach (we’re big fans of this approach at Kernel!).
Kernel’s speciality funds include the S&P Global Clean Energy Fund, S&P Kensho Moonshots Innovation Fund and S&P Kensho Electric Vehicle Innovation Funds.
All other funds we consider to be core funds.
What is a core-satellite investing approach?
At Kernel we’re big advocates for the core-satellite investing approach. In fact, we base our investment approach at Kernel around it.
A core satellite investing strategy is where 80-90% of your portfolio is invested in broadly diversified low-cost index funds – the “core”.
While the other 10-20% is invested in “satellites” which can be more speculative investments, such as individual stocks, thematic funds, sector funds and more.
You can read more about core satellite investing in our blog: How can Kernel funds fit together.
Grouping Kernel’s Funds into “Core” and “Specialty”
We consider the following Kernel funds as ”core” when referring to these throughout our website, in particular with relation to our fees:
NZ 20 Fund
NZ Commercial Property Fund
NZ Small & Mid Cap Opportunities Fund
Global 100 Fund
Global Infrastructure Fund
S&P Global Dividend Aristocrats Fund
S&P 500 Fund
Hedged Global Infrastructure Fund
Hedged Global 100 Fund
Kernel High Growth Fund
Kernel Balanced Fund
Kernel Cash Plus Fund
NZ 50 ESG Tilted Fund
Global Green Property Fund
Kernel Global ESG Fund
Hedged Global ESG Fund
Note: All core funds have a management fee of 0.25% p.a.
S&P Global Clean Energy Fund
S&P Kensho Moonshots Innovation Fund
S&P Kensho Electric Vehicle Innovation Fund
Note: all the specialty funds have a management fee of 0.45% p.a.
Are “Specialty” and “Thematic” funds the same?
You might notice that throughout our website and blogs we sometimes refer to ‘thematic’ funds. Thematic funds are those which follow a particular theme; usually related to an economic trend. For example, innovation or electric vehicles. These are considered satellites, as part of a core-satellite investing approach, as mentioned above.
We have grouped Kernel’s thematic funds into our specialty fund grouping, so the thematic fund is the type of fund whereas specialty funds is the grouping label we have given them.
To read more about thematic funds specifically, be sure to check out our blogs outlining the 101 of investing in thematic funds: