Fund-vs-fund · Diversified
Kernel Conservative Fund vs NZ Funds Income Generator
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 their actual asset allocation despite sharing the "Diversified" category label. The Kernel Conservative Fund holds 23.37% in growth assets, positioning it firmly toward the defensive end of the spectrum, with its largest exposures being an iShares US aggregate bond ETF (12.89%) and a ladder of New Zealand government securities. The NZ Funds Income Generator, by contrast, classifies 98.31% of its portfolio as growth assets — an unusually high figure for a fund carrying the word "income" in its name — with top holdings including Goldman Sachs futures (9.86%), Rio Tinto (6.75%), and Australian equities such as Woolworths Group and Commonwealth Bank. This divergence in underlying exposure is reflected in their risk indicators: Kernel Conservative sits at 3 on the 1–7 scale, while NZ Funds Income Generator sits at 4.
Fee structures differ substantially. Kernel Conservative charges 0.25% per annum; NZ Funds Income Generator charges 1.67% per annum. On a five-year return basis, NZ Funds Income Generator discloses 0.9% per annum; Kernel Conservative's five-year return is not available in this snapshot, likely due to the fund's shorter operating history. Fund sizes are broadly comparable at approximately NZD 14.0 million and NZD 15.8 million respectively.
Readers should verify all figures, including any updates to fees, returns, and portfolio composition, against each fund's current Product Disclosure Statement and latest Quarterly Fund Update on FMA Disclose before relying on this summary.
Cached comparison generated 2026-05-21 from each fund's latest FMA Disclose QFU. Regenerated when the underlying facts change.
What's different at a glance
- Kernel Conservative Fund charges 1.42% lower in annual fund charges (0.25% vs 1.67%).
- 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
Kernel
0.25%
Lowest 6% of cohort
NZ Funds
1.67%
Highest 2% of cohort
5-year return p.a.
Past performance — not a predictor
Kernel
—
—
NZ Funds
0.90%
Bottom 6% over 5 years
Fund size
Larger = more stable, lower close-risk
Kernel
NZ$14m
Smallest 25% in cohort
NZ Funds
NZ$16m
Lower half by size
| Metric | Kernel | NZ Funds | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.25% | 1.67% | Lower is better |
| Risk indicator (1–7) | 3 | 4 | Higher = more volatility |
| 5-year return p.a. | — | 0.90% | Higher is better (past not future) |
| Fund size | NZ$14m | NZ$16m | Larger = more stable, lower close-risk |
| Growth / income split | 23% / 77% | 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.
What each fund says it does
Kernel
Kernel Conservative Fund
The Kernel Conservative Fund's investment objective is to provide a return (before tax, fees and expenses) that closely matches the return of the index of the reference portfolio. Investment strategy. Designed as a 30% growth / 70% income option by investing mainly in several of the other Kernel fundsFull Kernel Kernel Conservative Fund profile →
NZ Funds
NZ Funds Income Generator
The objective of the NZ Funds Income Generator is to provide a source of income by primarily investing in dividend paying shares and derivatives including options. The fund is anticipated to mainly own and trade New Zealand and Australian shares, derivatives including options over the minimum suggested timeframe.Full NZ Funds NZ Funds Income Generator profile →
Common questions
What's the difference between the Kernel Conservative Fund and the NZ Funds Income Generator?
Which fund has lower fees, Kernel Conservative Fund or NZ Funds Income Generator?
Are both funds PIE-taxed in NZ?
Where can I read the official documents for these funds?
