Kernel Cash Plus Fund

At 0.25 percent, this is the cheapest cash fund in KiwiSaver, and it sits 2nd in its category over one year and 1st over three. Kernel Cash Plus returned 4.1 percent in the past year and 5.5 percent annualised over three years, while holding $12.3 million in member funds. The fee structure is management only, with no other charges or performance fees.

The portfolio is 92 percent cash and equivalents, with the remainder in New Zealand bonds. Nearly 15 percent sits in a Bank of China deposit. Beyond that, the fund spreads across floating rate notes from Kiwibank and Transpower, an Auckland Council floater, and commercial paper from SBS Bank and tax traders. The holdings lean toward institutional names and structured cash instruments rather than plain bank deposits.

This is a risk level 1 fund built around capital stability and short-term liquidity. The allocation reflects a cash strategy that reaches beyond the standard call account, using a mix of term deposits, floating rate securities and short-dated paper to capture yield while keeping duration low.

General information only, not financial advice. Past performance is not a reliable indicator of future results.