What can the Kernel Conservative Fund actually invest in?
The fund's Statement of Investment Policy and Objectives (SIPO) defines the asset classes it can hold and the allowable target / min / max weights for each.
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% |
Mandate flexibility (sum of max − min across all ranges): 215%. Wide range — high manager discretion typical of active management.
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.