It is with great excitement that we share with you, our wonderful Kernel community, the announcement about our new funds!
Kernel went live in September 2019, a mere 10 months ago, with three NZ index funds. But that was only the beginning. Our team is very proud to share with you the details of our latest funds.
So what are they and how did we choose these funds?
First we created a shortlist of about eight options, which doesn’t sound like a hard task. But when your options are literally endless – narrowing it down to eight is no mean feat.
Things we considered were: what do investors need as part of their core portfolio, how do they complement our existing funds, what sectors should investors add to diversify and reduce risk, what global share markets are efficient to access, how does accessing those markets affect costs and tax, tax and more tax.
From the list of eight, our team reviewed, tested and debated all of the options endlessly. We consulted global experts and had custom indices designed by S&P Dow Jones Indices. There were so many great options, but we couldn’t do them all…yet.
So we asked you, our investors, followers and community. Some of you might recall that we emailed a survey to see your thoughts on two fund options which we knew would add great value to a portfolio. We listened to this feedback, very seriously, and ultimately it informed one of our three new fund choices.
So without further ado, here they are. We hope you like them as much as we do – and as people say about their children, we have no favourites.
Each can play a role in a specific part of a portfolio, so we hope you see something to fit in with yours.
The Kernel S&P Global 100 Fund
Providing exposure to the world’s largest brands.
The Global 100 Fund is best described as putting the ‘best of the best’ within reach of Kiwi investors. Comprised of some of the world’s biggest and best-known companies, including Amazon, Nike, Nestle and Walmart, Kernel customers can put their money into the new fund starting with amounts as little as a single dollar. You can read all the nitty gritty here.
The Kernel S&P Global Dividend Aristocrats Fund
Designed to deliver reliable dividends
A ‘Dividend Aristocrat’ is a company which has increased or maintained its shareholder dividend payments for at least ten years in a row. This fund includes a select grouping of strong, global businesses with solid cashflow and earnings, which can be relied upon for their consistent delivery of an income stream.
By creating a fund comprised solely of these stable and reliable performers, the Kernel S&P Global Dividend Aristocrats Fund is an attractive solution for those seeking regular returns from their investments, along with potential capital growth. Want to learn more about Dividend Aristocrats? Read on.
The Kernel Global Infrastructure Fund
Giving investors access to some of the world’s largest infrastructure projects, companies and operators, including Auckland’s own City Rail Link.
Global Infrastructure Is a sector set for a boom over the coming decades on the back of government fiscal stimulus packages in response to the COVID-19 pandemic, combined with historically low interest rates. More details on the fund here.
We created these funds in direct response to rising customer demand. The current climate for investors is challenging, particularly for those hunting for income.
But there is always opportunity in adversity. When we polled our investors we received the clear message that there is appetite for global exposure, particularly to blue-chip companies and brands.
The addition of these three new funds increases our offering to six diversified index funds, all available through our fully digital platform. Our global funds are available at the lowest global equity PIE funds available to Kiwis.
And this is still just the beginning.
Head of Marketing & Customer Strategy