Fund-vs-fund · Diversified
Foundation Series Balanced Fund vs Kernel Balanced Fund
Both are Diversified 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 portfolio construction. The Foundation Series Balanced Fund concentrates roughly 88% of disclosed holdings across just five positions, each of which is itself a pooled ETF or fund — including ESG-screened vehicles such as the Vanguard ESG US Stock ETF (29.5%) and the iShares Global Aggregate Bond ESG SRI UCITS ETF (26.5%). This explicit ESG tilt is a deliberate design choice not present in the Kernel Balanced Fund, which holds a broader spread of individual securities, government bonds, and market-cap ETFs without a stated ESG screen visible in its top holdings.
On fees, Kernel discloses an annual fund charge of 0.25%, compared with Foundation Series at 0.36% — a difference of 11 basis points that compounds over time. Both funds carry a risk indicator of 4 out of 7 and hold nearly identical growth-asset allocations (Kernel 53.72%, Foundation Series 53.15%), placing them structurally in the same balanced-fund band. Fund sizes are also comparable: Kernel at approximately NZD 44.8 million and Foundation Series at approximately NZD 45.5 million.
On performance, Foundation Series discloses a five-year annualised return of 4.77%; Kernel's five-year return figure is not available in this snapshot, so direct historical comparison cannot be made here.
Both funds are available as KiwiSaver scheme account options. Verify all figures — including the latest fees, returns, and asset allocations — against each fund's current PDS and 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 Balanced Fund charges 0.11% lower in annual fund charges (0.25% vs 0.36%).
- 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 67 diversified funds we've matched on Sorted Smart Investor. Mechanical only — no opinion, no forward-looking view.
Annual fund charge
Lower is better
Foundation Series
0.36%
Lowest 14% of cohort
Kernel
0.25%
Lowest 6% of cohort
5-year return p.a.
Past performance — not a predictor
Foundation Series
4.77%
Top 25% over 5 years
Kernel
—
—
Fund size
Larger = more stable, lower close-risk
Foundation Series
NZ$46m
Lower half by size
Kernel
NZ$45m
Lower half by size
| Metric | Foundation Series | Kernel | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.36% | 0.25% | Lower is better |
| Risk indicator (1–7) | 4 | 4 | Higher = more volatility |
| 5-year return p.a. | 4.77% | — | Higher is better (past not future) |
| Fund size | NZ$46m | NZ$45m | Larger = more stable, lower close-risk |
| Growth / income split | 53% / 47% | 54% / 46% | 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
Foundation Series
Foundation Series Balanced Fund
Aims for mid-range long-run returns by investing in a diversified portfolio with a balance of income and growth assets. The Fund incorporates certain responsible investment considerations and is exposed to investment strategies that seek to limit exposure to companies involved in specific business practices.Full Foundation Series Foundation Series Balanced Fund profile →
Kernel
Kernel Balanced Fund
The fund is designed to provide investors with a diversified exposure to both income and growth assets by investing in domestic and global listed financial products.Full Kernel Kernel Balanced Fund profile →
Documents
Crawled directly from each manager's website. How we record provenance →
Common questions
What's the difference between the Foundation Series Balanced Fund and the Kernel Balanced Fund?
Which fund has lower fees, Foundation Series Balanced Fund or Kernel Balanced Fund?
Are both funds PIE-taxed in NZ?
Where can I read the official documents for these funds?
