Kernel NZ Small & Mid Cap Opportunities Fund
Managed by Kernel Kernel NZ Small & Mid Cap Opportunities Fund is a australasian equities managed fund operated by Kernel; PIE-structured; FMA risk indicator 5/7. Headline terms: annual fund charge 0.25% · minimum investment NZ$1. Compared with 57 other same-category funds on this site, the 0.25% annual fund charge sits below the same-category median of 1.02%.
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 our PIR guide and PIE tax basics for the full picture, or use the PIR calculator to confirm your rate.
Annual fund charge
0.25%
vs peer avg 0.85%
Risk indicator
5/7
1 = lower risk · 7 = higher risk
5-year return p.a.
Less than 5 years of data
peer avg 5.65%
Fund size
NZ$863k
98% growth · 2% income
To provide a return (before tax, fees and expenses) that closely matches the return on the S&P/NZX Emerging Opportunities Index. The fund is passively managed and invests in financial products listed on the NZX whose normal free-float market capitalisation is greater than $75 million and who are outside of the S&P/NZX 20 Index.
How Kernel NZ Small & Mid Cap Opportunities Fund differs
Factual contrasts drawn from the PDS, SIPO and latest portfolio holdings — no opinion.
- Investment style
- Actively managed, benchmarked to the S&P/NZX Emerging Opportunities Index.
- Top 3 holdings
- Channel Infrastructure NZ Ltd (7.4%) · Vital Healthcare Property (6.4%) · Heartland Group Holdings Limited (6.3%)
Key facts
Fund start date
11 April 2022
Min. investment
NZ$1
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 | 0% | -5% | 10% |
| Australasian equities | 100% | 90% | 105% |
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.
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 Limited manages both the KiwiSaver Plan and the underlying Kernel Funds scheme, meaning it acts as manager at two levels and decisions it makes about underlying funds directly affect KiwiSaver investors.
- Kernel acknowledges that restrictions it imposes on the underlying Kernel Funds—such as limiting withdrawals or switches—can flow through and constrain what KiwiSaver Plan investors are able to do with their money.
- Both Kernel and the Supervisor are indemnified from Plan assets for losses incurred in proper performance of their duties, meaning these claims rank ahead of investor claims against those same assets.
- Administration, custody, unit pricing, and fund accounting are provided by related parties Adminis NZ Limited and MUFG Pension & Market Services (NZ) Limited, with costs for these services borne by the Plan.
Generated 2026-05-28 from Kernel KiwiSaver Plan 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
Conflicts disclosed
3
In OMI
Conflicts of interest disclosed in OMI
- Each KiwiSaver Fund invests wholly in underlying funds within the Kernel Funds scheme (SCH12697), which is also managed by Kernel Wealth Limited, meaning Kernel acts as manager at both levels.
- Decisions Kernel makes in respect of the Kernel Funds (e.g. restricting withdrawals or switches for underlying funds) may affect investors' investments in the KiwiSaver Plan.
- Both Kernel and the Supervisor are indemnified out of Plan assets for losses and costs incurred in proper performance of their duties, taking priority over investor claims.
How this fund compares to peers
Mechanical comparison vs the 58 other australasian equities funds in our cohort. Source: FMA Disclose register via Sorted Smart Investor. Past performance is not a reliable indicator of future returns.
Annual fund charge
0.25%
Category median: 1.01%
Cheaper than 90% of peers
Fund size
NZ$863k
Category median: NZ$74.1m
1th percentile by AUM
Illustrative 5y fee impact on a sample balance of $10,000
$124
Compounded charge over 5 years (excl. returns)
$371 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.
Top 10 holdings
As at the latest published quarterly fund update (via Sorted Smart Investor).
| Holding | % of fund |
|---|---|
| CI Channel Infrastructure NZ Ltd | 7.36% |
 Vital Healthcare Property | 6.44% |
| HG Heartland Group Holdings Limited | 6.29% |
 Skellerup Holdings Ltd | 6.28% |
 Argosy Property Ltd | 6.05% |
 Fonterra Shareholders' Fund | 5.43% |
 Scales Corporation Limited | 5.32% |
 Sky City Entertainment Group Limited | 4.76% |
| G( Gentrack Ltd (NZ Register) | 4.59% |
| TO Tower Limited | 3.92% |
Documents
Every dated PDS, quarterly fund update and full-portfolio holdings file. Linked from the FMA Disclose register via Sorted Smart Investor.
- Kernel Kiwi Saver PDS Equities August 2025.pdf How this investment works, including about the provider, risks, costs and potential returns PDF, 399.30 KB
- SMO FU KS Kiwi Saver Update Mar 2026.pdf The quarterly update published by the provider PDF, 595.12 KB
- Kernel Kiwi Saver PDS Diversified August 2025.pdf Additional product disclosure statement from the provider PDF, 415.69 KB
- ESG Policy March 2023.pdf ESG Policy PDF, 1.92 MB
- Kernel Kiwi Saver OMI August 2025.pdf Other Material Information PDF, 271.27 KB
- Kernel Kiwi Saver SIPO September 2025.pdf Statement of investment policy and objectives PDF, 482.21 KB
About this category
Funds investing primarily in shares listed on the NZX (New Zealand) or ASX (Australia), or both as Trans-Tasman portfolios. Includes active stock-pickers and passive index trackers.
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.
See all funds from Kernel →Common questions
Questions people ask about Kernel NZ Small & Mid Cap Opportunities Fund
Drawn from Google's "People also ask" panel and answered with reference to the fund's filed PDS, Fund Update and FMA Disclose data. Not personal financial advice — for guidance specific to your situation, consult an authorised financial adviser.
Is it good to invest in opportunities fund?
Small and mid-cap funds target companies outside the largest 20–50 by market capitalisation, which typically carry higher growth potential but also higher volatility than large-cap funds. This Kernel fund is classified as Risk indicator 5/7 on the FMA standardised scale, meaning it sits in the higher-volatility range; suitability depends on your personal risk tolerance, investment timeframe, and financial circumstances. Check the Product Disclosure Statement on the Kernel website and the FMA Disclose register for detailed fund information.
Is Kernel a good investment?
Whether Kernel's NZ Small & Mid Cap Opportunities Fund suits your needs depends on your investment goals, risk tolerance, and portfolio context. As at the latest QFU, the fund charges 0.25% p.a. in annual fund charges, which is materially lower than the peer-cohort average of 0.85% p.a. for similar funds. Review the current PDS, latest QFU documentation, and FMA Disclose register entry to assess whether the fund's composition, risk profile (5/7), and tax treatment (PIE) align with your circumstances.
Is my money safe with Kernel?
All NZ-licensed fund managers must comply with FMC Act governance and custody requirements; you can verify Kernel's regulatory standing via the Financial Service Providers Register. Fund units are held in custody separate from the manager's own assets. However, investment in growth assets—this fund holds approximately 98.37% in growth assets and carries Risk indicator 5/7—means capital value will fluctuate with market conditions. See the Product Disclosure Statement and FMA Disclose register for custodian details and full risk disclosures.
Head-to-head
Compare Kernel NZ Small & Mid Cap Opportunities Fund with…
Side-by-side numbers — fees, returns, risk, fund size, asset mix.
Peer funds
Other Australasian Equities 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 (5/7)
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 NZ Small & Mid Cap Opportunities Fund?
Kernel NZ Small & Mid Cap Opportunities 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 NZ Small & Mid Cap Opportunities Fund?
It is a australasian equities managed fund. The fund has a growth risk profile. Funds investing primarily in shares listed on the NZX (New Zealand) or ASX (Australia), or both as Trans-Tasman portfolios. Includes active stock-pickers and passive index trackers.
What are the fees for the Kernel NZ Small & Mid Cap Opportunities Fund?
The annual fund charge for the Kernel NZ Small & Mid Cap Opportunities 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 NZ Small & Mid Cap Opportunities Fund?
The risk indicator is 5/7 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 NZ Small & Mid Cap Opportunities Fund a PIE fund?
Yes. The Kernel NZ Small & Mid Cap Opportunities 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 NZ Small & Mid Cap Opportunities Fund?
Fund size (assets under management) is NZ$863,060.75 as at the latest Quarterly Fund Update. Asset mix is approximately 98% growth assets and 2% income assets.
What does the Kernel NZ Small & Mid Cap Opportunities Fund invest in?
The latest published top holdings are: Channel Infrastructure NZ Ltd (7.36%), Vital Healthcare Property (6.44%), Heartland Group Holdings Limited (6.29%). 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 NZ Small & Mid Cap Opportunities Fund?
The Kernel NZ Small & Mid Cap Opportunities Fund is available via Kernel directly. Always read the current Product Disclosure Statement before investing.
Is it good to invest in opportunities fund?
Small and mid-cap funds target companies outside the largest 20–50 by market capitalisation, which typically carry higher growth potential but also higher volatility than large-cap funds. This Kernel fund is classified as Risk indicator 5/7 on the FMA standardised scale, meaning it sits in the higher-volatility range; suitability depends on your personal risk tolerance, investment timeframe, and financial circumstances. Check the Product Disclosure Statement on the Kernel website and the FMA Disclose register for detailed fund information.
Is Kernel a good investment?
Whether Kernel's NZ Small & Mid Cap Opportunities Fund suits your needs depends on your investment goals, risk tolerance, and portfolio context. As at the latest QFU, the fund charges 0.25% p.a. in annual fund charges, which is materially lower than the peer-cohort average of 0.85% p.a. for similar funds. Review the current PDS, latest QFU documentation, and FMA Disclose register entry to assess whether the fund's composition, risk profile (5/7), and tax treatment (PIE) align with your circumstances.
Is my money safe with Kernel?
All NZ-licensed fund managers must comply with FMC Act governance and custody requirements; you can verify Kernel's regulatory standing via the Financial Service Providers Register. Fund units are held in custody separate from the manager's own assets. However, investment in growth assets—this fund holds approximately 98.37% in growth assets and carries Risk indicator 5/7—means capital value will fluctuate with market conditions. See the Product Disclosure Statement and FMA Disclose register for custodian details and full risk disclosures.