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US Bond

Invest in the world’s biggest bond market, hedged to the New Zealand dollar.

3 Years

Minimum suggested investment time frame

3.94%

Yield as at 30 September 2024 (subject to change).

0.30%

Management fee p.a.


Overview

The Kernel US Bond Fund provides exposure to the US bond market and is hedged against currency fluctuations. The fund aims to provide a similar return as an index made up of the total U.S. investment-grade bond market including government and corporate bonds.

The fund tracks the Bloomberg US Aggregate Total Return Index Hedged NZD.

Where is my money?

Take comfort in knowing the top asset types and issuers your money is with.

top 5 fund holdings

Fund holdings as at 30 September 2024

HoldingCredit ratingWeighting

Blackrock Cash Funds: Institutional

N/A

3.53%

US Treasury Note

N/A

0.52%

US Treasury Note

N/A

0.52%

US Treasury Note

N/A

0.51%

US Treasury Note

N/A

0.51%

Logos provided by Clearbit

The credit rating is that of the instrument, unless a bank deposit where the rating of the bank is used.

Credit rating

Allocation of the fund by issuer credit rating (S&P or equivalent):

AAA to AA- (74.8%)

A+ to A- (11.9%)

BBB+ to BBB- (12.8%)

Unrated & Other (0.5%)

Issuer composition

This shows the allocation of the portfolio by type of issuer:

Treasury (44.0%)

MBS Pass-Through (25.2%)

Industrial (15.0%)

Financial Institutions (8.1%)

Utility (2.4%)

CMBS (1.4%)

Sovereign (1.0%)

Supranational (0.7%)

Local Authority (0.6%)

Agency (0.6%)

Cash and/or Derivatives (0.5%)

ABS (0.5%)

Credit rating and issuer composition as at 30 September 2024.

Risk

The risk indicator reflects how much the value of the Fund’s assets goes up and down (volatility). A higher risk generally means higher potential returns over time, but more ups and downs along the way. The lowest risk rating doesn’t mean “risk-free” and this risk indicator is not a guarantee of a Fund’s future performance.

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Lower risk

Higher risk

Benefits

There's plenty to love about investing in bond funds.

Tax capped at 28%

This is a PIE fund, so if your RWT rate is 30% or over, you can pay a maximum of 28% in tax.

Income generation

Bonds can be attractive for investors looking for a source of cash flow.

Easy access

Gain exposure to several bonds with as little as $1.

Documents

Latest Fund Factsheet

Updated: 30.09.2024

Kernel Funds Latest Fund Update

Updated: 30.06.2024

See the historical fund updates here

Related articles

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© Copyright 2024 Kernel Wealth Limited

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Indices provided by: S&P Dow Jones Indices