Want US share with your global equity fund? No thanks

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Kernel Wealth yesterday rolled out a suite of new funds and has already had strong interest shown from advisers.

Thursday, August 7th 2025, 8:32AM 1 Comment

The most interesting fund is a global fund which excludes United States shares; the Kernel World ex-US Funds (hedged and unhedged).

These funds invest directly in a broad mix of securities across 23 developed markets outside the United States. Available in both hedged and unhedged versions, they enable investors to control how much exposure they want to the world's biggest market, with a single trade enabling them to diversify across the remaining developed markets in a low-fee and tax-efficient manner. Investors could complement the World ex US fund by dialling up or down the Kernel S&P 500 Fund, or choose to self-select direct assets.

Direct investment in underlying securities ensures both transparency and tax efficiency for New Zealand investors.

The other new funds are the Kernel Conservative Fund and Kernel Australia 100 Fund.

Head of Distribution, Helen Skinner, says the new funds reflect Kernel’s commitment to meeting the evolving needs of New Zealand investors.

“The world is evolving at an exceptional pace, with the US currently making up over 70% of most developed equity benchmarks. While it remains home to some of the world's most innovative and well-known brands, we see investors wanting to increasingly take advantage of new and more efficient ways to invest and control their portfolios for their particular needs.”

“These new funds provide the building blocks for more precise portfolio construction, whether the goal is regional diversification, risk management, or targeted growth.”

Kernel Australia 100 Fund (Unhedged)

This fund tracks the S&P/ASX 100 Index, providing exposure to the 100 largest and most liquid companies listed on the Australian Securities Exchange (ASX). It comes in a tax-efficient PIE structure and represents over 87% of the ASX300 capitalisation, offering a simple, cost-effective way to add targeted Australian equity exposure - ideal for regional diversification or tapping into Australia’s strong dividend sectors.

Kernel Conservative Fund
This fund complements the well-known and regarded Kernel High Growth, Balanced, and Cash Plus funds, particularly for investors in the KiwiSaver sector, offering full flexibility to blend and shift between risk profiles. Positioned between the Kernel Balanced Fund and a pure income strategy, the Conservative Fund is designed for clients seeking lower volatility without sacrificing long-term growth. With a strategic allocation of 30% growth assets and 70% income assets, the fund invests across a mix of Kernel funds, delivering built-in diversification across asset classes, sectors, and global markets.

All four funds have a 25 basis point management fee, with no additional entry or exit fees, ensuring cost-effective access for all investors.

The new funds went live on August 5, and can be traded either directly with Kernel, or via the Adminis and FNZ platforms.

“These new funds are a direct response to feedback from our adviser community and reflect our ongoing focus on innovation and client outcomes,” Skinner says.

Tags: Kernel

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