Morningstar December 2025 Quarter Results – a strong result for Kernel members

3-year fund performance to 31 December 2025

The highlights

• High Growth takes #1 out of 12 funds in the Aggressive category for 3-year annualised returns (19.2% p.a.*).
• Balanced secured 2nd place out of 32 funds for 3-year annualised returns (12.9% p.a.).
• Cash Plus ranked 1st out of 17 funds in the Cash category for 3-year annualised returns (5.5% p.a.).
• The takeaway: These results help highlight the importance of a low cost, diversified, and data driven approach when it comes to investing.

The Morningstar KiwiSaver Survey for 2025 has been released for the December 2025 quarter, and the results offer a great opportunity to check in on how Kernel’s diversified funds are performing for our members.

When we look back over the last three years - a period that has seen plenty of market movement - the data shows that our diversified funds (High Growth, Balanced, and Cash Plus) have consistently sat at the top of their respective categories.

For those with a long-term horizon, the Kernel High Growth Fund has been a standout. It secured the #1 spot for 3-year annualised returns in the Aggressive category, returning 19.2% p.a.

This result is a testament to the power of staying diversified and keeping your investment strategy simple. By capturing the broad strength of the global markets, our members have seen the benefits of a disciplined, long-term approach.

The Balanced category is one of the largest and most diverse in the KiwiSaver market, with 32 different funds reporting a 3-year track record in the Morningstar reports. The Kernel Balanced Fund claimed 2nd place over this period, with a return of 12.9% p.a.

In a category with so many different investment styles, this result highlights that a transparent, diversified approach can be a highly effective way to grow wealth over time.

A balanced fund is designed for investors who want to capture market growth but value the potential added stability that fixed income provides. Whether inside or outside of KiwiSaver, this approach is often well-suited for medium-term goals - such as saving for a child’s university costs or a major home renovation 5–7 years away - as it aims to provide a steadier investment journey while still building wealth over time.

While growth funds often grab the headlines, our Cash Plus Fund has also led its category. It ranked 1st in the Cash category over the last three years, returning 5.5% p.a.

Whether you're saving for a first home or simply wanting a defensive buffer in your portfolio, having a high-quality cash option is an important part of many well-rounded investment plans.

Rankings are a helpful benchmark, but what really matters is how these results support personal financial goals. These latest figures highlight three key pillars of the Kernel philosophy:

• Fees matter: Performance is reported on a net of fees basis. By keeping our management costs low, more of the returns stay in your account to compound over time.
• Diversification works: For the shares in the High Growth and Balanced funds, these results aren't about "picking winners." They come from having broad exposure to thousands of companies globally, reducing the impact of any single market event.
• Data led decisions: While outperforming the global share market is statistically rare, fixed income tells us a different story. For those with a medium-term horizon, this suggests a greater opportunity to add value through skilled management. It’s why we’ve chosen to actively manage the fixed income portion of our Balanced, and Cash Plus fund, while keeping your share investments low-cost and diversified.

While we’re pleased with these results, it’s important to remember that past performance isn't a guarantee of future returns. Markets move, and the value of your investment can go up and down.

Equally, while our diversified funds have performed strongly over this time period, it’s important to know that different fund providers’ strategies will shine over different time periods.

We always recommend focusing on what you can control, such as choosing a fund that matches your specific goals, keeping costs low, diversifying and staying the course during noisy market periods.

Check out Kernel’s other fund performance here.

*The returns published here are after fees but before tax.

© 2026 Morningstar All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its affiliates or content providers; (2) may not be copied, adapted or distributed; (3) is not warranted to be accurate, complete or timely; and (4) does not constitute advice of any kind, whether investment, tax, legal or otherwise and 5) has been prepared for New Zealand wholesale clients of Morningstar Research Ltd, subsidiary of Morningstar, Inc and is not intended for New Zealand retail clients. Neither Morningstar nor its content providers are responsible for any damages arising from the use and distribution of this information. Past performance is no guarantee of future results.