Fund-vs-fund · International Equities
Foundation Series Global ESG Fund vs Kernel World ex-US 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 their investment construction: the Foundation Series Global ESG Fund holds just two Vanguard ETFs — a 66.7% allocation to the Vanguard ESG US Stock ETF and 33.3% to the Vanguard ESG INTL Stock ETF — meaning it is heavily US-weighted and explicitly screens for ESG criteria at the ETF level. The Kernel World ex-US Fund, by contrast, deliberately excludes US equities, offering exposure to international developed and emerging markets outside the United States, with its top disclosed holdings concentrated in European large-caps including ASML, AstraZeneca, Novartis, HSBC, and Roche.
Both funds sit at risk indicator 5 and carry near-identical growth asset allocations (Foundation Series at 98.31%, Kernel at 98.37%), so their risk profiles and asset-class composition are closely matched despite the geographic divergence. Neither fund discloses a five-year return figure in this snapshot, so past-performance comparison is not possible from this data.
On fees, Foundation Series charges 0.10% per annum against Kernel's 0.25%, a 15 basis point difference that compounds meaningfully over time at comparable return levels. Fund size differs: Foundation Series sits at approximately NZD 5.97 million versus Kernel's NZD 9.25 million, both relatively small funds. The Kernel fund's PDS references a KiwiSaver scheme account structure; investors should confirm which vehicle applies to their circumstances.
Always verify all figures against the source PDS and latest Quarterly Fund Update on FMA Disclose before relying on any information here.
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 0.15% lower in annual fund charges (0.10% vs 0.25%).
- 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
0.25%
Lowest 15% 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$9m
Smallest 5% in cohort
| Metric | Foundation Series | Kernel | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.10% | 0.25% | 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$9m | 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 | — | Unhedged | 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 World ex-US Fund
The Kernel World ex-US Fund's investment objective is to provide a return (before tax, fees and expenses) that closely matches the return on the S&P World Ex-U.S., Controversial Weapons and Tobacco (NZD) Index.Full Kernel Kernel World ex-US 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 World ex-US Fund?
Which fund has lower fees, Foundation Series Global ESG Fund or Kernel World ex-US 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?
