New equities only KiwiSaver fund

Kernel is planning to launch a KiwiSaver scheme next month which will feature equities only and potential members are warned it is a long-term investment option.

It recommends members have a minimum timeframe of five to seven years and an ideal horizon of 20-30 years.

Kernel chief executive Dean Anderson said "while most providers have 20 to 25% of their growth KiwiSaver funds in bonds and/or cash, the Kernel funds are pure equities, which can be more susceptible to short-term fluctuations yet have greater long-term growth potential."

The boutique firm is putting fee pressure on competitors with its lowest fee being 25 basis points. This comes on top of Kernel's position as offering tax efficient funds to clients.