Fund-vs-fund · International FI
Daintree High Income PIE vs Kernel US Bond Fund
Both are International FI 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 how they achieve international fixed income exposure. The Kernel US Bond Fund holds a single underlying ETF — the iShares Core US Aggregate Bond ETF — at approximately 100% of the portfolio, giving investors direct, transparent pass-through to a broad US investment-grade bond index. The Daintree High Income PIE, by contrast, allocates roughly 98% of its portfolio to the Daintree High Income Trust NZD, a unit trust vehicle, meaning investors hold an interest in a fund-of-fund structure managed by Daintree's active team rather than a passive index.
Risk profiles diverge noticeably despite the shared category: Kernel carries a risk indicator of 4, Daintree a 3, suggesting Daintree's portfolio currently exhibits lower short-term return volatility as measured by the standard FMA methodology. Kernel's growth asset allocation sits at 0.31% versus Daintree's 0.07%, a marginal difference. On fees, Kernel discloses an annual fund charge of 0.30% compared with Daintree's 0.90% — a 60-basis-point gap. Fund size also differs: Daintree's PIE holds approximately NZD 744,000 in assets versus Kernel's roughly NZD 388,000. Neither fund discloses a five-year return figure in this snapshot, so return history cannot be compared here. Currency exposure differs too: Kernel explicitly lists US Dollar and New Zealand Dollar positions, while Daintree's currency treatment is not separately itemised in the available data.
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 US Bond Fund charges 0.60% lower in annual fund charges (0.30% vs 0.90%).
- Both are New Zealand PIE funds — investor tax is capped at the Prescribed Investor Rate (PIR), maximum 28%.
Where each fund sits in its cohort
Percentile rank vs all 31 international fi funds we've matched on Sorted Smart Investor. Mechanical only — no opinion, no forward-looking view.
Annual fund charge
Lower is better
Daintree
0.90%
Highest 21% of cohort
Kernel
0.30%
Lowest 13% of cohort
5-year return p.a.
Past performance — not a predictor
Daintree
—
—
Kernel
—
—
Fund size
Larger = more stable, lower close-risk
Daintree
NZ$744k
Smallest 5% in cohort
Kernel
NZ$388k
Smallest 2% in cohort
| Metric | Daintree | Kernel | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.90% | 0.30% | Lower is better |
| Risk indicator (1–7) | 3 | 4 | Higher = more volatility |
| 5-year return p.a. | — | — | Higher is better (past not future) |
| Fund size | NZ$744k | NZ$388k | Larger = more stable, lower close-risk |
| Growth / income split | 0% / 100% | 0% / 100% | More growth = higher long-run return + volatility |
| NZ tax structure | PIE (PIR-capped) | PIE (PIR-capped) | PIE = simpler. FIF = annual return. |
| Currency hedging | — | — | 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.
What each fund says it does
Daintree
Daintree High Income PIE
The Fund invests into the Daintree High Income Trust (Underlying Fund) that has a diversified portfolio of international credit fixed income securities and cash, with an allocation to non-investment grade securities. This Underlying Fund applies a range of strategies that include duration and yield curve management, sector rotation and individual security selection. The aim of the Fund is to provide income over the medium term and a total return (after fees) that exceeds the Benchmark.Full Daintree Daintree High Income PIE profile →
Kernel
Kernel US Bond Fund
The Kernel US Bond Fund�s investment objective is to provide a return (before tax, fees and expenses) that closely matches the return on the Bloomberg US Aggregate Bond Index Hedged NZDFull Kernel Kernel US Bond Fund profile →
Common questions
What's the difference between the Daintree High Income PIE and the Kernel US Bond Fund?
Which fund has lower fees, Daintree High Income PIE or Kernel US Bond Fund?
Are both funds PIE-taxed in NZ?
Where can I read the official documents for these funds?
