What can the Kernel S&P 500 (Unhedged) 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% |
| International equities | 100% | 0% | 105% |
Mandate flexibility (sum of max − min across all ranges): 120%. Moderate range — some manager latitude within a broader mandate.
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.