Fund-vs-fund · International Equities
Foundation Series Global ESG Fund vs Kernel Emerging Markets 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 geographic exposure. The Foundation Series Global ESG Fund allocates roughly two-thirds of its portfolio to US-listed equities and one-third to international developed markets, both via Vanguard ESG ETFs that screen for environmental, social, and governance criteria. The Kernel Emerging Markets Fund, by contrast, holds virtually its entire portfolio in a single SPDR ETF tracking emerging markets — economies such as China, India, Brazil, and Taiwan — carrying a structurally different risk profile tied to developing-market volatility, currency, and political risk, despite both funds sharing a risk indicator of 5 out of 7.
The fee difference is also meaningful. Foundation Series discloses an annual fund charge of 0.10%, while Kernel discloses 0.45% — a 0.35 percentage point gap that compounds over time on any given balance. Both funds are small by industry standards: Foundation Series sits at approximately NZ$5.97 million in total assets and Kernel at approximately NZ$4.43 million, which may affect liquidity and operational scale.
Neither fund discloses a five-year return figure in the current snapshot, likely reflecting insufficient track record at this stage, so no long-run performance comparison is possible from this data alone. Growth assets are nearly identical at 98.31% and 98.37% respectively.
Investors seeking ESG-screened developed-market exposure and those seeking emerging-market growth are looking at meaningfully different underlying economies, not merely different fund wrappers. Always verify fees, holdings, and risk details 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
- Foundation Series Global ESG Fund charges 0.35% lower in annual fund charges (0.10% vs 0.45%).
- Both are New Zealand PIE funds — investor tax is capped at the Prescribed Investor Rate (PIR), maximum 28%.
- Foundation Series Global ESG Fund applies responsible-investment / ESG screening. The other fund does not.
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
Foundation Series
0.10%
Lowest 7% of cohort
Kernel
0.45%
Lower half of cohort
5-year return p.a.
Past performance — not a predictor
Foundation Series
—
—
Kernel
—
—
Fund size
Larger = more stable, lower close-risk
Foundation Series
NZ$6m
Smallest 4% in cohort
Kernel
NZ$4m
Smallest 2% in cohort
| Metric | Foundation Series | Kernel | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.10% | 0.45% | Lower is better |
| Risk indicator (1–7) | 5 | 5 | Higher = more volatility |
| 5-year return p.a. | — | — | Higher is better (past not future) |
| Fund size | NZ$6m | NZ$4m | 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 smooths NZD/foreign FX moves at a small cost. |
| Responsible investment screening | Yes | 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 Global ESG Fund
The Fund aims for high long-run returns by investing in ETFs that invests in shares of large, mid-sized and small companies listed on international stock markets. 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 Global ESG Fund profile →
Kernel
Kernel Emerging Markets Fund
The Kernel Emerging Markets Fund�s investment objective is to provide a return (before tax, fees and expenses) that closely matches the return on the S&P Emerging Markets BMI (NZD) IndexFull Kernel Kernel Emerging Markets Fund profile →
Documents
Crawled directly from each manager's website. How we record provenance →
Foundation Series
LiveLast verified 2026-05-08
Kernel
Common questions
What's the difference between the Foundation Series Global ESG Fund and the Kernel Emerging Markets Fund?
Which fund has lower fees, Foundation Series Global ESG Fund or Kernel Emerging Markets Fund?
Are both funds PIE-taxed in NZ?
Does either fund apply responsible-investment screening?
Where can I read the official documents for these funds?
