Fund-vs-fund · Listed Property
Harbour Real Estate Investment Fund vs Kernel NZ Commercial Property Fund
Both are Listed Property 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 cost. Harbour Real Estate Investment Fund charges an annual fund fee of 0.77%, compared with Kernel NZ Commercial Property Fund at 0.25% — a gap of 0.52 percentage points that compounds meaningfully over time regardless of which fund delivers stronger gross returns.
Both funds sit at risk indicator 5 on the standardised FMA scale and carry an almost identical growth-asset allocation of 98.31%, placing them in the same risk band and broadly the same asset-class exposure. Fund size is similar: Harbour at approximately NZD 130.3 million, Kernel at approximately NZD 140.3 million. The five-year return figures reported in each fund's latest Quarterly Fund Update show Harbour at 1.51% per annum and Kernel at 2.75% per annum, though past returns are not a reliable indicator of future performance and the two funds' track-record start dates may differ, affecting comparability.
Portfolio construction diverges in concentration. Harbour's top five holdings include Argosy Property (9.96%) but exclude Property for Industry; Kernel's top five include Property for Industry (13.13%) but exclude Argosy. Both hold Goodman, Kiwi Property Group, Precinct, and Vital Healthcare in their top positions, though weightings differ — for example, Goodman represents 15.48% in Harbour versus 17.87% in Kernel. Harbour's active management approach allows discretionary weighting; Kernel's fund tracks a rules-based index, which partly explains the fee differential.
Always verify current fees, returns, and holdings against each fund's Product Disclosure Statement 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 NZ Commercial Property Fund charges 0.52% lower in annual fund charges (0.25% vs 0.77%).
- 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 15 listed property funds we've matched on Sorted Smart Investor. Mechanical only — no opinion, no forward-looking view.
Annual fund charge
Lower is better
Harbour
0.77%
Lowest 23% of cohort
Kernel
0.25%
Lowest 3% of cohort
5-year return p.a.
Past performance — not a predictor
Harbour
1.51%
Bottom 21% over 5 years
Kernel
2.75%
Upper half over 5 years
Fund size
Larger = more stable, lower close-risk
Harbour
NZ$130m
Largest 23% in cohort
Kernel
NZ$140m
Largest 17% in cohort
| Metric | Harbour | Kernel | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.77% | 0.25% | Lower is better |
| Risk indicator (1–7) | 5 | 5 | Higher = more volatility |
| 5-year return p.a. | 1.51% | 2.75% | Higher is better (past not future) |
| Fund size | NZ$130m | NZ$140m | 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 | 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.
Matching holdings
6
of each fund's top 10
Harbour weight in shared
61.6%
of Harbour Real Estate Investment Fund top 10 is shared
Kernel weight in shared
79.2%
of Kernel NZ Commercial Property Fund top 10 is shared
| Holding | Harbour | Kernel |
|---|---|---|
| GP Goodman Property Trust NZ | 15.48% | 17.87% |
 Kiwi Property Group NZ | 13.75% | 17.39% |
 Argosy Property NZ | 9.96% | 11.51% |
 Vital Healthcare Property Trust NZ | 9.76% | 12.24% |
| PF Property for Industry NZ | 6.96% | 13.13% |
 Stride Property NZ | 5.65% | 7.08% |
"Min weight" = the smaller of the two weights — a conservative read of how much exposure you'd have to that position if you held both funds.
What each fund says it does
Harbour
Harbour Real Estate Investment Fund
The Fund aims to capture the income yield and medium-term capital growth characteristics of real estate assets by investing principally in listed real estate assets and enhance diversification and return potential against the S&P/NZX All Real Estate Index.Full Harbour Harbour Real Estate Investment Fund profile →
Kernel
Kernel NZ Commercial Property Fund
The fund is passively managed and invests in financial products listed on the NZX.Full Kernel Kernel NZ Commercial Property Fund profile →
Documents
Crawled directly from each manager's website. How we record provenance →
Harbour
LiveLast verified 2026-05-08
Kernel
Common questions
What's the difference between the Harbour Real Estate Investment Fund and the Kernel NZ Commercial Property Fund?
Which fund has lower fees, Harbour Real Estate Investment Fund or Kernel NZ Commercial Property Fund?
How do the 5-year returns compare?
Are both funds PIE-taxed in NZ?
Where can I read the official documents for these funds?
