What can the Kernel NZ 50 ESG Tilted 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 | 0% | -5% | 10% |
| Australasian equities | 100% | 90% | 105% |
Mandate flexibility (sum of max − min across all ranges): 30%. Narrow range — index-tracking style with limited drift.
Responsible-investment approach
Five funds consider non-financial ESG factors: Kernel Global Property (NZD Hedged) Fund, Kernel S&P Global Clean Energy Fund, NZ 50 ESG Tilted Fund, Kernel Global ESG Fund, and Kernel Global ESG (NZD Hedged) Fund. These funds use S&P DJI ESG scoring methodologies, including exclusions, tilts, and climate-alignment screens. Kernel's ESG Policy sets out applicable index methodologies, exclusions, and minimum reporting publications for non-financial metrics.
Derivatives policy
Kernel Equity Funds (except NZD Hedged variants) do not currently use derivatives but may do so in future on a fund-by-fund basis. NZD Hedged funds and Fixed Interest funds may use derivatives (swaps, futures, options, FRAs, repos) primarily to hedge foreign currency exposure or manage cash flows; borrowing via derivatives is capped at 25% of fund value.