Kernel NZ 50 ESG Tilted

At 0.25 percent, this fund charges a quarter of what most active managers take, yet it holds just NZ$1.5 million in assets across the entire portfolio. The ESG tilt reshuffles the NZ 50 index to favour companies with stronger environmental, social and governance scores, pushing Fisher & Paykel Healthcare to the top at 10.5 percent and dialling down others. Fletcher Building sits at 8.6 percent, followed by Auckland Airport, Meridian and Contact Energy. The top ten holdings command nearly 68 percent of the fund, reflecting the concentrated nature of the New Zealand market itself.

The three-year return of 8.4 percent annually, and 10.1 percent over the past year, comes entirely from New Zealand shares. There is no Australian exposure, no bonds, and only a sliver of cash. The ESG overlay means the fund does not simply mirror the market-cap-weighted index: it shifts the balance toward firms with higher sustainability ratings, which in practice means more renewable energy and healthcare, less traditional banking weight. The risk level sits at 6 out of 7.

The fund's tiny size makes it a niche choice within Kernel's range. The fee is low, the structure transparent, but the scale suggests limited uptake so far.

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