Kernel Conservative Fund
Kernel Conservative Fund is a diversified managed fund from Kernel with a fund size of NZ$14.0 million and an annual fund charge of 0.25%, as shown on Sorted Smart Investor on 22 May 2026.
Managed by KernelFund data last refreshed · holdings as filed to 31/03/2026
Kernel Conservative Fund is a diversified managed fund operated by Kernel; PIE-structured; FMA risk indicator 3/7. Headline terms: annual fund charge 0.25% · minimum investment NZ$1 · distributions quarterly. Compared with 67 other same-category funds on this site, the 0.25% annual fund charge sits below the same-category median of 0.99%.
PIE tax treatment — capped at your PIR (max 28%)
This fund is a Portfolio Investment Entity (PIE) under Subpart HM of the Income Tax Act 2007. Income is taxed at your Prescribed Investor Rate (10.5% / 17.5% / 28%), not your marginal income-tax rate. The fund manager calculates and pays the tax on your behalf — when your PIR is correct, you usually don't need to declare PIE income in your annual tax return. See ourPIR guideandPIE tax basicsfor the full picture, or use thePIR calculatorto confirm your rate.
Annual fund charge
0.25%
vs peer avg 0.89%
Risk indicator
3/7
1 = lower risk · 7 = higher risk
5-year return p.a.
Less than 5 years of data
peer avg 2.19%
Fund size
NZ$14.0m
23% growth · 77% income
To invest in both income and growth assets and achieve positive real returns over the long term while lessening volatility through diversification across asset classes, sectors and geographies.
How Kernel Conservative Fund differs
Factual contrasts drawn from the PDS, SIPO and latest portfolio holdings — no opinion.
- Top 3 holdings
- IShares Core US Aggregate Bond ETF (12.9%) · NZGS 4.25% 15/05/2034 (7.8%) · NZGS 5.00% 15/05/2054 (3.3%)
- Currency policy
- Funds with international exposure generally do not hedge unless designated NZD Hedged. NZD Hedged funds target 100% hedge back to NZD with a permitted range of 70%–120% assessed weekly. The US Bond Fund, NZ Bond Fund, an…
Key facts
Fund start date
13 August 2025
Min. investment
NZ$1
Subsequent: NZ$1
Distributions
Quarterly
Tax structure
PIE
Capped at your PIR (max 28%)
Investment policy
From the Statement of Investment Policy and Objectives (SIPO).
Strategic asset allocation ranges
| Asset class | Target | Min | Max |
|---|---|---|---|
| Cash and cash equivalents | 18% | -5% | 20% |
| New Zealand fixed interest | 25% | 0% | 50% |
| International fixed interest | 27% | 0% | 60% |
| Australasian equities | 6% | 0% | 20% |
| International equities | 21.5% | 0% | 50% |
| Listed property | 2.5% | 0% | 10% |
Responsible-investment approach
Five funds incorporate non-financial ESG factors: Kernel Global Property (NZD Hedged), Kernel Global Clean Energy, NZ 50 ESG Tilted, Kernel Global ESG, and Kernel Global ESG (NZD Hedged). ESG considerations include environmental, social and governance conditions as independently observed, assessed and/or reported by listed companies, using S&P DJI index methodologies. Kernel's ESG Policy sets out applicable index methodologies, exclusions and minimum non-financial metric reporting.
Derivatives policy
Equity funds (except NZD Hedged variants and the High Growth Fund) do not currently use derivatives but may do so in future. The Diversified Funds, Fixed Interest Funds and all NZD Hedged funds may use derivatives to hedge foreign currency exposures; Fixed Interest Funds may also use interest rate futures or swaps as cash equivalents, and repos for cash-flow management. Borrowing is intended only for settlement purposes, capped at 25% of Fund Value unless otherwise agreed with the Supervisor.
Reading between the lines
Plain-English summary of the scheme's disclosed conflicts and performance-fee mechanics, drawn from the OMI and PDS. Factual restatement — no opinion.
- Kernel Wealth runs eight passively oriented funds spanning cash, NZ and US bonds, target-maturity bonds, and diversified growth/balanced/conservative strategies, with no performance fees disclosed.
- Annual fund charges range from 0.25% (most funds) to 0.40% (Kernel NZ Bond Fund), which are among the lower fee levels in the NZ retail managed-fund market.
- Risk indicators range from 1/7 (Kernel Cash Plus Fund) to 5/7 (Kernel High Growth Fund), reflecting the spectrum from cash-equivalent to growth-asset exposure across the fund range.
- No conflicts of interest, related-party transactions, or performance-fee mechanics were disclosed in the provided PDS information for any of the eight Kernel funds.
Generated 2026-05-29 from Kernel Funds OMI (dated 2025-08-06). The verbatim disclosures appear in full below — this summary is a navigation aid, not a substitute.
Scheme disclosures
From the Other Material Information (OMI) document. Scheme-level — applies to every fund in this scheme.
Trustee / Supervisor
Trustees Executors Limited
Auditor
EY
Custodian
Adminis NZ Limited
How this fund compares to peers
Mechanical comparison vs the 68 other diversified funds in our cohort. Source: FMA Disclose register via Sorted Smart Investor. Past performance is not a reliable indicator of future returns.
Kernel Conservative Fund: 0.25% per annum. Diversified median across 68 funds:0.99%. This fund is 0.74 percentage points below the category median.
Annual fund charge
0.25%
Category median: 0.99%
Cheaper than 94% of peers
Fund size
NZ$14.0m
Category median: NZ$45.7m
29th percentile by AUM
Illustrative 5y fee impact on a sample balance of $10,000
$124
Compounded charge over 5 years (excl. returns)
$361 less than peer median
Read the full fee-vs-peers breakdown →
Mechanical scores only — no opinion or recommendation. Different funds suit different investor goals. ManagedFundsNZ is not a Financial Advice Provider. Read the current PDS and consider speaking to a licensed financial adviser.
Complete portfolio
This fund files 2,098 holdings with the FMA as at 31/03/2026. The largest 25 are shown.
Top 10 concentration: 40.4% of net assets.
Direct disclosed holdings only — a floor on exposure, not a total. Filings list wrappers and securities together, so a fund holding another fund shows no look-through here. Disclosed rows account for 98.4% of net assets. Percentages are of this fund's net assets and are safe to sum within this fund only.
| Holding | % of fund | |
|---|---|---|
| iShares Core US Aggregate Bond ETF | 12.89% | |
| NZGS 4.25% 15/05/2034 | 7.67% | |
| NZGS 5.00% 15/05/2054 | 3.23% | |
| NZGS 4.50% 15/05/2030 | 2.91% | |
| NZGS 4.25% 15/05/2036 | 2.80% | |
| Bank of China Deposit | 2.65% | |
| NZGS 3.00% 20/09/2030 | 2.31% | |
| NZ LGFA 4.50% 14/05/2032 | 2.21% | |
| Dunedin City Treasury 5.55% 15/11/2028 | 2.14% | |
| Wellington Intl Airport 3.32% 24/09/2031 | 1.55% | |
| Watercare Services Ltd 3.847% 30 Sep 2030 | 1.44% | |
| Kiwibank Ltd FRN 15/03/2028 | 1.22% | |
| Nvidia Ord | 1.19% | |
| Kiwi Property Group 2.85% 19/07/2028 | 1.18% | |
| Apple Inc | 1.05% | |
| New Zealand Dollar | 1.00% | |
| Fisher & Paykel Healthcare Corp Ltd | 0.87% | |
| NZGS 2.75% 15/04/2037 | 0.86% | |
| NZ LGFA 3.00% 15/05/2035 | 0.85% | |
| Auckland International Airport | 0.79% | |
| Microsoft | 0.77% | |
| Rabobank 4.398% 20/02/2031 | 0.75% | |
| Auckland City Council 2.95% 28/09/2050 | 0.74% | |
| T R Group Limited 5.456% 16/12/2030 | 0.74% | |
| ASB 4.10% 02/09/2030 | 0.73% |
Every NZ managed fund must file its complete portfolio with the FMA each quarter. Where a line is itself a fund, trust or ETF, the securities inside it are not broken out here.
Top 10 holdings
As at the latest published quarterly fund update (via Sorted Smart Investor).
| Holding | % of fund |
|---|---|
ICIShares Core US Aggregate Bond ETF | 12.89% |
N4NZGS 4.25% 15/05/2034 | 7.80% |
N5NZGS 5.00% 15/05/2054 | 3.29% |
N4NZGS 4.50% 15/05/2030 | 2.95% |
N4NZGS 4.25% 15/05/2036 | 2.84% |
BOBank of China Deposit | 2.65% |
N3NZGS 3.00% 20/09/2030 | 2.31% |
NLNZ LGFA 4.50% 14/05/2032 | 2.24% |
DCDunedin City Treasury 5.55% 15/11/2028 | 2.18% |
WIWellington Intl Airport 3.32% 24/09/2031 | 1.55% |
Documents
Every dated PDS, quarterly fund update and full-portfolio holdings file. Linked from the FMA Disclose register via Sorted Smart Investor.
- KERNEL CONSERVATIVE FUND (FND58858) Full portfolio holdings 31 March 2026.xlsx Download the full portfolio holdings. XLSX, 0.45 KB
- Kernel Funds PDS Equities August 2025.pdf How this investment works, including about the provider, risks, costs and potential returns PDF, 351.82 KB
- Conservative FU Fund Update Mar 2026.pdf The quarterly update published by the provider PDF, 600.53 KB
- Kernel Funds PDS Diversified August 2025.pdf Additional product disclosure statement from the provider PDF, 335.37 KB
- Kernel Funds OMI August 2025.pdf Other material information of relevance to investors PDF, 246.01 KB
- Kernel Funds SIPO September 2025.pdf Statement of investment policy and objectives PDF, 518.86 KB
About this category
Multi-asset funds that hold a mix of shares, bonds, cash and sometimes property in a single portfolio. The mix determines the risk profile — aggressive funds hold more shares, conservative funds hold more bonds and cash.
About Kernel
NZ index-investing specialist with a broad retail range covering NZ, Australian, US and global equity, infrastructure, ESG, fixed interest and cash strategies.
Kernel has 27 retail funds in our coverage across Diversified, Cash, NZ Fixed Interest, International FI, International Equities, Other, Listed Property and Australasian Equities strategies, with annual fund charges from 0.25% to 0.45% a year.
Based in Auckland.
Common questions
Questions people ask about Kernel Conservative Fund
Questions that recur in search results for this fund, answered from its filed PDS, Fund Update and FMA Disclose record. How the question set was captured is documented in our methodology. Not personal financial advice — for guidance specific to your situation, consult a licensed financial adviser.
How much is the Kernel fee?
Kernel Conservative Fund has an annual fund charge of 0.25% p.a., as disclosed in the latest Quarterly Fund Update. This is materially lower than the peer-cohort average annual fund charge of 0.89% p.a. for comparable funds.
What are typical fees for a fund of funds?
Kernel Conservative Fund is a diversified fund with an annual fund charge of 0.25% p.a. Fees vary across fund types and managers; you can compare annual charges for funds in our coverage using the FMA Disclose Register at https://disclose-register.companiesoffice.govt.nz/
Is kernel wealth trustworthy?
Kernel Wealth operates under FMA regulation and discloses fund information through the FMA Disclose Register. You can verify the fund's registration, fee disclosures, and other regulatory data at https://disclose-register.companiesoffice.govt.nz/ and review the latest Product Disclosure Statement on the Kernel Wealth website at https://kernelwealth.co.nz
Head-to-head
Compare Kernel Conservative Fund with…
Side-by-side numbers — fees, returns, risk, fund size, asset mix.
Peer funds
Other Diversified funds
Same manager
Other funds by Kernel
- Kernel S&P Global 100 FundInternational Equities
- Kernel High Growth FundDiversified
- Kernel Global Infrastructure FundOther
FMA risk band
Same risk band (3/7)
See every NZ retail managed fund with the same standardised FMA risk indicator. Useful for peer-checking volatility-comparable funds outside this category.
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Frequently asked questions
Mechanical Q&A grounded in the fund's PDS, SIPO, and latest QFU on the FMA Disclose register. Verify against the source before relying on any of this.
Who manages the Kernel Conservative Fund?
Kernel Conservative Fund is managed by Kernel. NZ index-investing specialist with a broad retail range covering NZ, Australian, US and global equity, infrastructure, ESG, fixed interest and cash strategies.
What asset class is the Kernel Conservative Fund?
It is a diversified managed fund. The fund has a conservative risk profile. Multi-asset funds that hold a mix of shares, bonds, cash and sometimes property in a single portfolio. The mix determines the risk profile — aggressive funds hold more shares, conservative funds hold more bonds and cash.
What are the fees for the Kernel Conservative Fund?
The annual fund charge for the Kernel Conservative Fund is 0.25% p.a., as reported in the latest Quarterly Fund Update sourced from the FMA Disclose register. Always check the current PDS for any additional fees.
What is the risk indicator for the Kernel Conservative Fund?
The risk indicator is 3/7 on the standardised FMA-mandated scale, where 1 is lower risk and 7 is higher risk. The risk indicator is calculated from the fund's price volatility over the past five years and is published in every Quarterly Fund Update.
Is the Kernel Conservative Fund a PIE fund?
Yes. The Kernel Conservative Fund is structured as a New Zealand Portfolio Investment Entity (PIE). Investor tax on the fund's income is capped at the investor's Prescribed Investor Rate (PIR), which has a maximum of 28%. Most NZ-resident retail investors with a taxable income at or below NZ$48,000 qualify for a lower PIR.
How big is the Kernel Conservative Fund?
Fund size (assets under management) is NZ$14 million as at the latest Quarterly Fund Update. Asset mix is approximately 23% growth assets and 77% income assets.
What does the Kernel Conservative Fund invest in?
The latest published top holdings are: IShares Core US Aggregate Bond ETF (12.89%), NZGS 4.25% 15/05/2034 (7.80%), NZGS 5.00% 15/05/2054 (3.29%). Holdings are disclosed in each Quarterly Fund Update; the full portfolio holdings file is also available via the FMA Disclose register.
How can I invest in the Kernel Conservative Fund?
The Kernel Conservative Fund is available via Kernel directly. Always read the current Product Disclosure Statement before investing.
How much is the Kernel fee?
Kernel Conservative Fund has an annual fund charge of 0.25% p.a., as disclosed in the latest Quarterly Fund Update. This is materially lower than the peer-cohort average annual fund charge of 0.89% p.a. for comparable funds.
What are typical fees for a fund of funds?
Kernel Conservative Fund is a diversified fund with an annual fund charge of 0.25% p.a. Fees vary across fund types and managers; you can compare annual charges for funds in our coverage using the FMA Disclose Register at https://disclose-register.companiesoffice.govt.nz/
Is kernel wealth trustworthy?
Kernel Wealth operates under FMA regulation and discloses fund information through the FMA Disclose Register. You can verify the fund's registration, fee disclosures, and other regulatory data at https://disclose-register.companiesoffice.govt.nz/ and review the latest Product Disclosure Statement on the Kernel Wealth website at https://kernelwealth.co.nz