Kernel is one of New Zealand’s newer independent KiwiSaver providers: an index-focused fund manager whose KiwiSaver Plan launched in April 2022. Members combine funds from a range of 10+ index and diversified funds into their own allocation, pay 0.25% to 0.45% a year depending on the fund and no member fee, and can see their KiwiSaver alongside Kernel Wealth, its managed funds platform outside KiwiSaver. This is one of our KiwiSaver provider reviews.
Kernel at a Glance
| Feature | Detail |
|---|---|
| Type | Independent, index-focused |
| Default provider | No |
| Investment approach | Mostly passive index funds; Balanced and Cash Plus are active |
| Growth fund fee | 0.25% to 0.45% a year depending on the fund |
| Admin fee | $0 member fee |
| High Growth fund (aggressive) return | No 5-yr data yet (launched April 2022) |
| Digital tools | Web platform and app |
| Ethical option | Some funds apply ESG screens |
| Non-KiwiSaver platform | Yes (Kernel Wealth) |
Who Is Kernel?
Kernel was founded in 2019 by Dean Anderson, with a focus on making low-cost index investing accessible to everyday New Zealanders. The company operates two main products: Kernel Wealth (a managed funds platform outside KiwiSaver) and Kernel KiwiSaver.
Kernel states its approach as transparency: fee disclosure, fund descriptions, and plain-English communication.
Fee Structure: Percentage Only, No Admin Fee
Kernel’s fee model is simple and, as of this review, has no flat component at all:
- Annual management fee: 0.25% to 0.45% a year depending on the fund
- Annual account/membership fee: $0
With no flat dollar fee, what you pay is the percentage fee on the funds you hold, proportional from the first dollar:
| Balance | 0.25% core fund | 0.45% specialty fund |
|---|---|---|
| $10,000 | $25 | $45 |
| $30,000 | $75 | $135 |
| $50,000 | $125 | $225 |
| $100,000 | $250 | $500 |
| $200,000 | $500 | $1,000 |
Because fees run from 0.25% to 0.45% depending on the fund, the mix of funds you choose sets your cost. Other providers’ fees are in KiwiSaver fund fees compared.
Fund Range
Kernel offers a range of index funds that members can combine into a personalised portfolio:
| Fund | Focus | Fee |
|---|---|---|
| NZ 20 | NZ top 20 companies | 0.25% |
| Global 100 | Top 100 global companies | 0.25% |
| S&P 500 (NZD Hedged) | US 500 largest companies | 0.25% |
| Global Property | Global listed property | 0.25% |
| Global Infrastructure | Global listed infrastructure | 0.25% |
| Global ESG | ESG-screened global shares | 0.25% |
| Cash Plus | Short-term NZ fixed interest (active) | 0.25% |
| Balanced | Diversified balanced portfolio (active) | 0.25% |
| High Growth | Diversified growth portfolio (core index fund) | 0.25% |
| S&P Global Clean Energy | Specialty thematic (clean energy) | 0.45% |
Kernel offers a wider range again (NZ Commercial Property, NZ Small & Mid Cap Opportunities, and others) beyond this core selection — check kernelwealth.co.nz for the full current list and fees.
Kernel’s multi-fund approach lets members build their own allocation from these funds.
Performance
Kernel’s index funds are passive and track their underlying indices minus fees. The Kernel KiwiSaver Plan is still young — its funds launched in April 2022 — so no fund has a published 5-year return yet, and any “5-year” comparison you see for Kernel should be treated with caution until that history exists.
Returns:
- Kernel has not published a return history long enough to judge: no fund has a 5-year return yet.
Kernel’s international equity index funds have tracked the broader run in global share markets. Any multi-year average for Kernel is an estimate until the scheme has an actual 5-year track record, expected from 2027.
Currency exposure: The S&P 500 and Global 100 funds offer unhedged (or partially hedged) exposure to global markets. When the NZD weakens, unhedged international funds benefit, a feature not always available within traditional KiwiSaver growth fund structures.
Digital Experience
Kernel’s platform features:
- Web platform and app: fund performance display
- Portfolio customisation: Members allocate across Kernel’s fund range
- Fee disclosure: in dollar terms per fund
- Non-KiwiSaver integration: Members who also use Kernel Wealth can see both portfolios in one place
Features and Limitations
Features:
- Members choose their own allocation across 10+ funds
- No flat fee, so cost is proportional from the first dollar
- Direct exposure to specific indices (S&P 500, Global 100)
- Unified platform with Kernel Wealth for investing outside KiwiSaver
Limitations:
- Members build their own allocation rather than choosing from a few presets
- No established long-term track record: KiwiSaver funds launched in 2022, so no 5-year return yet
- Active funds (Balanced, Cash Plus) are new, with no multi-year record
- Some funds cost more (the specialty index funds charge 0.45%)
Kernel and Simplicity
Kernel and Simplicity both run low-cost index-based KiwiSaver funds with no flat member fee; Kernel offers more individual funds to combine, while Simplicity offers a handful of preset funds and has run KiwiSaver since 2016. Simplicity’s fees, funds and structure are set out in the Simplicity KiwiSaver review.
Where to check the latest data
Rates, fees and returns change often. Before deciding, check current figures yourself:
- Sorted Smart Investor: compares fees, returns and risk levels of KiwiSaver and managed funds.
- Disclose register: holds each fund's product disclosure statement and quarterly fund updates.
- The provider's latest fund update: gives the fund's current fees, returns and holdings.
Frequently Asked Questions
What are Kernel’s main features? Index investing with fund customisation. Kernel charges no member fee, so its cost is purely the 0.25% to 0.45% management fee on the funds you hold.
What are Kernel KiwiSaver’s fees? A management fee of 0.25% to 0.45% a year depending on the fund, and no flat dollar fee. Check Kernel’s current PDS for exact rates; other providers’ fees are in KiwiSaver fund fees compared.
Can I hold the S&P 500 fund inside KiwiSaver with Kernel? Yes. Kernel’s KiwiSaver allows allocation to its S&P 500 and Global 100 index funds, giving members targeted US and global equity exposure.
Is Kernel regulated? Kernel’s KiwiSaver Plan is a KiwiSaver scheme, and IRD notes that the Financial Markets Authority regulates KiwiSaver schemes in a similar way to other registered superannuation schemes. Kernel’s PDS names the scheme’s supervisor.
What to Read Next
- KiwiSaver Providers Compared: full provider comparison
- KiwiSaver Fees Comparison: fees across providers
- KiwiSaver Fund Returns NZ: 5-year after-fee returns
- Switching KiwiSaver Providers: how to move to Kernel
- Bank vs Independent KiwiSaver NZ: the wider provider landscape