Fund-vs-fund · International Equities
Kernel Emerging Markets FundvsKernel S&P Global Dividend Aristocrats Fund
Kernel Emerging Markets Fund (fund size NZ$4.4 million, annual fund charge 0.45%) and Kernel S&P Global Dividend Aristocrats Fund (fund size NZ$5.3 million, annual fund charge 0.25%) are both international equities 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 19.70% and 13.80%, per their quarterly fund updates filed on FMA Disclose.
How much do these two overlap?
They hold 1 of the same securities. If you held both, roughly 0.4% of your money would be in the same companies — so the diversification you get from holding the pair is smaller than holding two funds suggests.
| Shared holding | Kernel Emerging | Kernel S&P | Min weight |
|---|---|---|---|
| NEW ZEALAND DOLLAR | 0.57% | 0.38% | 0.38% |
Min weight is the smaller of the two weightings — if you hold both funds, that is the floor of your exposure to that position. Direct holdings only: anything either fund holds through an underlying fund or ETF is not counted, so the real overlap can only be higher. From each fund's FMA Disclose full portfolio filing.
Why these two differ
The most material structural difference between these two Kernel funds is their underlying investment approach and, directly linked to that, their fee levels. The Kernel Emerging Markets Fund gains its international equities exposure through a single instrument — the SPDR Portfolio Emerging Markets ETF — which effectively makes it a fund-of-fund wrapper targeting developing-market economies. The Kernel S&P Global Dividend Aristocrats Fund, by contrast, holds a diversified basket of individual securities selected for consistent dividend growth across developed markets, with no single position exceeding approximately 2.3% of the portfolio. This distinction in construction — concentrated single-ETF pass-through versus direct multi-stock replication — is the primary driver of the fee gap: the Emerging Markets Fund charges 0.45% per annum against the Dividend Aristocrats Fund's 0.25%, a difference of 20 basis points annually.
Both funds carry an identical risk indicator of 5 and near-identical growth asset allocations of 98.37%, so neither is positioned more defensively than the other on those measures. Fund size is comparable, with the Emerging Markets Fund at approximately NZD 4.4 million and the Dividend Aristocrats Fund at approximately NZD 5.3 million. Neither fund discloses a five-year return figure in this snapshot, so historical performance cannot be compared here. Both funds share the same PDS dated August 2025, indicating they sit within the same Kernel KiwiSaver scheme offer, meaning investors would hold these through their KiwiSaver scheme account.
Verify all figures against the source PDS and each fund's 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 S&P Global Dividend Aristocrats Fund charges 0.20% lower in annual fund charges (0.25% vs 0.45%).
- 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 84 international equities funds we've matched on Sorted Smart Investor. Mechanical only — no opinion, no forward-looking view.
Annual fund charge
Lower is better
Kernel
0.45%
Lower half of cohort
Kernel
0.25%
Lowest 15% of cohort
5-year return p.a.
Past performance — not a predictor
Kernel
—
—
Kernel
—
—
Fund size
Larger = more stable, lower close-risk
Kernel
NZ$4m
Smallest 2% in cohort
Kernel
NZ$5m
Smallest 3% in cohort
| Metric | Kernel | Kernel | Lower / higher is |
|---|---|---|---|
| Annual fund charge | 0.45% | 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$4m | NZ$5m | 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. |
What each fund says it does
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 →
Kernel
Kernel S&P Global Dividend Aristocrats Fund
The Kernel S&P Global Dividend Aristocrats Fund invests in globally listed multi-national, blue chip companies and is designed to track the S&P Global Dividend Aristocrats Quality Income DM ex KR Index (NZD)Full Kernel Kernel S&P Global Dividend Aristocrats Fund profile →
Common questions
What's the difference between the Kernel Emerging Markets Fund and the Kernel S&P Global Dividend Aristocrats Fund?
Which fund has lower fees, Kernel Emerging Markets Fund or Kernel S&P Global Dividend Aristocrats Fund?
Are both funds PIE-taxed in NZ?
Where can I read the official documents for these funds?
