Fund-vs-fund · Diversified
Foundation Series Balanced FundvsKernel Balanced Fund
Foundation Series Balanced Fund (fund size NZ$45.5 million, annual fund charge 0.36%) and Kernel Balanced Fund (fund size NZ$44.8 million, annual fund charge 0.25%) are both diversified managed funds, as shown on Sorted Smart Investor on 22 May 2026; for the year to 31 March 2026 their 1-year returns after fees and tax were 6.49% and 10.51%, per their quarterly fund updates filed on FMA Disclose.
Where you can buy these
Platform availability confirmed within the last 180 days. This is a statement of availability, not a recommendation — ManagedFundsNZ is not a Financial Advice Provider. Check the current PDS before investing.
Foundation Series Balanced Fund
Kernel Balanced Fund
No platform availability confirmed. Usually means it is bought directly from the manager — check their site.
Why these two differ
Foundation Series Balanced Fund and Kernel Balanced Fund are both diversified funds with similar asset allocations (53% and 54% growth assets respectively) and identical risk indicators of 4, but differ materially in fee structure and portfolio transparency.
Foundation Series charges 0.36% annually, while Kernel charges 0.25%—an 11-basis-point difference that compounds over time. Over a 30-year horizon, this fee gap could materially affect long-term wealth accumulation, all else equal.
The funds also differ in documented performance history. Foundation Series discloses a five-year return of 4.77%. Kernel's latest Quarterly Fund Update does not include a five-year return figure; prospective investors cannot currently benchmark historical performance against Foundation Series using this metric from FMA Disclose data.
Portfolio construction reveals a structural divergence. Foundation Series concentrates holdings in five large positions (Vanguard and iShares ESG ETFs plus Harbour Sustainable NZ Shares at 16.69%), suggesting a fund-of-funds approach. Kernel's top five holdings are far more dispersed across individual securities and bonds (ranging from 2.55% to 8.93%), indicating stock-picking or a broader index-driven strategy with greater position granularity.
Both funds are similar in size (approximately NZ$45 million each).
Before making any investment decision, verify the current Product Disclosure Statements and latest Quarterly Fund Updates on FMA Disclose, as fund holdings, fees, and performance data are subject to change.
Comparison generated 2026-10-12 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 68 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 13% of cohort
Kernel
0.25%
Lowest 6% of cohort
5-year return p.a.
Past performance — not a predictor
Foundation Series
4.77%
Top 24% 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?
