Fund-vs-fund · International Equities
Aurellan Hedged Global Shares Fund vs Kernel S&P 500 (Unhedged) Fund
Both are International Equities funds available to NZ retail investors. Numbers below are sourced from the FMA Disclose register via Sorted Smart Investor and reflect the latest published quarterly fund updates.
Why these two differ
The most material structural difference between these two funds is currency treatment. The Kernel S&P 500 (Unhedged) Fund holds its US equity exposure without currency hedging, meaning returns to New Zealand investors move directly with NZD/USD fluctuations. The Aurellan Hedged Global Shares Fund, by contrast, applies currency hedging, seeking to insulate returns from exchange-rate movements — a decision that carries its own costs and basis risk but removes a significant source of short-term volatility.
Fee levels diverge sharply: Kernel charges an annual fund charge of 0.25%, while Aurellan's is 1.12% — a 0.87 percentage-point gap that compounds materially over time on equivalent balances. Both funds sit in the International Equities category with near-identical growth asset allocations (98.37% and 98.31% respectively) and similar fund sizes (approximately NZD 28.3 million and NZD 27.3 million).
Risk indicators differ by one band: Kernel carries a risk indicator of 6 and Aurellan a 5, likely reflecting the additional currency volatility retained in the unhedged structure. Portfolio concentration also differs — Kernel's top holding, Nvidia, represents 7.6% of the fund versus 2.35% in Aurellan, suggesting Kernel tracks a market-cap-weighted index with higher mega-cap concentration, while Aurellan appears more evenly distributed. Five-year return data is absent for both funds in this snapshot, so no performance comparison is possible. Neither fund is a KiwiSaver scheme account product based on available data, though readers should confirm this against each fund's PDS.
Verify all figures against each fund's current PDS and latest Quarterly Fund Update on FMA Disclose before relying on any of this information.
Comparison generated 2026-07-05 from each fund's FMA Disclose QFU facts as at that date. If the underlying facts change, this narrative is withheld until it is regenerated — the tables on this page always reflect the current data.
What's different at a glance
- Kernel S&P 500 (Unhedged) Fund charges 0.87% lower in annual fund charges (0.25% vs 1.12%).
- Both are New Zealand PIE funds — investor tax is capped at the Prescribed Investor Rate (PIR), maximum 28%.
- Aurellan Hedged Global Shares Fund hedges its foreign-currency exposure to NZD; Kernel S&P 500 (Unhedged) Fund is unhedged. NZD weakness boosts unhedged returns and reduces hedged returns (the inverse on NZD strength).
Where each fund sits in its cohort
Percentile rank vs all 81 international equities funds we've matched on Sorted Smart Investor. Mechanical only — no opinion, no forward-looking view.
Annual fund charge
Lower is better
Aurellan
1.12%
Upper half of cohort
Kernel
0.25%
Lowest 15% of cohort
5-year return p.a.
Past performance — not a predictor
Aurellan
—
—
Kernel
—
—
Fund size
Larger = more stable, lower close-risk
Aurellan
NZ$27m
Lower half by size
Kernel
NZ$28m
Lower half by size
| Metric | Aurellan | Kernel | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 1.12% | 0.25% | Lower is better |
| Risk indicator (1–7) | 5 | 6 | Higher = more volatility |
| 5-year return p.a. | — | — | Higher is better (past not future) |
| Fund size | NZ$27m | NZ$28m | Larger = more stable, lower close-risk |
| Growth / income split | 98% / 2% | 98% / 2% | More growth = higher long-run return + volatility |
| NZ tax structure | PIE (PIR-capped) | PIE (PIR-capped) | PIE = simpler. FIF = annual return. |
| Currency hedging | Hedged to NZD | Unhedged | Hedged smooths NZD/foreign FX moves at a small cost. |
| Responsible investment screening | No | No | Specific exclusions live in each fund's SIPO. |
| Available via | Direct | Direct | Platforms accepting retail subscriptions. |
Portfolio overlap
How many top-10 positions both funds hold, and at what weight. Computed from each fund's most recently disclosed top-10 holdings — exact-name matched (Microsoft Corp. = Microsoft Corporation), with a Cash / Cash & Equivalents collapse rule.
Matching holdings
4
of each fund's top 10
Aurellan weight in shared
8.8%
of Aurellan Hedged Global Shares Fund top 10 is shared
Kernel weight in shared
17.5%
of Kernel S&P 500 (Unhedged) Fund top 10 is shared
| Holding | Aurellan | Kernel |
|---|---|---|
 Meta Platforms Inc US | 3.07% | 2.24% |
 Apple Inc US | 2.01% | 6.68% |
 Amazon Com Inc US | 1.99% | 3.65% |
 Microsoft Corp US | 1.77% | 4.93% |
"Min weight" = the smaller of the two weights — a conservative read of how much exposure you'd have to that position if you held both funds.
What each fund says it does
Aurellan
Aurellan Hedged Global Shares Fund
The Fund aims to provide exposure to a diversified portfolio of global shares managed using a manager-of-managers approach. The Fund mitigates currency risk by hedging most major foreign currency exposures to New Zealand dollars.Full Aurellan Aurellan Hedged Global Shares Fund profile →
Kernel
Kernel S&P 500 (Unhedged) Fund
The Kernel S&P 500 (Unhedged) Fund�s investment objective is to provide a return (before tax, fees and expenses) that closely matches the return on the S&P 500 (NZD) IndexFull Kernel Kernel S&P 500 (Unhedged) Fund profile →
Common questions
What's the difference between the Aurellan Hedged Global Shares Fund and the Kernel S&P 500 (Unhedged) Fund?
Which fund has lower fees, Aurellan Hedged Global Shares Fund or Kernel S&P 500 (Unhedged) Fund?
Are both funds PIE-taxed in NZ?
Where can I read the official documents for these funds?
