Search

Kernel KiwiSaver Plan Review

We review the Kernel KiwiSaver Plan, which offers exposure to international and local markets for New Zealanders looking to invest in a low-fee, index fund-based KiwiSaver scheme. We look at this innovative KiwiSaver plan's funds, fees, and pros and cons.
Updated 1 September 2026

Important: This review was relaunched in September 2026. Every fee and fund figure was checked against Kernel's, Simplicity's and SuperLife's published fee schedules and fund lists. Providers can change these at any time, so confirm the details on the provider's site before you switch. Report an error on this page - no name or email needed.
Kernel KiwiSaver Plan in a nutshell:
  • A wide selection of funds: Kernel promotes its High Growth Fund as its flagship KiwiSaver fund. It also allows investors the option to invest in any of the 23 Kernel funds available in the Plan - New Zealand, Australian, US, global, emerging markets, property, infrastructure, ESG-tilted and clean energy funds (Kernel's four bond funds and its Total World Fund are not offered in KiwiSaver).
  • If you want less risk than the High Growth Fund, the Balanced, Conservative and Cash Plus Funds step down from there.
  • Option to choose between Kernel’s diversified funds or customise using a mix of Kernel funds: Depending on your preference, one of the four ready-made funds (High Growth, Balanced, Conservative or Cash Plus) might be all you need. But if you would like to choose the exact make up of your KiwiSaver balance you can mix and match as you please. That lets you add a sustainability lens (Global ESG, NZ 50 ESG Tilted, S&P Global Clean Energy) or a regional tilt (Australia 100, Emerging Markets, World ex-US) without going "all in" on one sector or theme.
  • Low fees: No annual member fee. A 0.25% p.a. management fee on 21 of the 23 funds in the Plan, including all four ready-made funds; the two specialty funds (S&P Global Clean Energy and Emerging Markets) charge 0.45% p.a. There are no membership, transaction, switching or withdrawal fees.
  • Tax advantage: All Kernel funds are registered as PIEs, which means tax is paid inside the fund at your prescribed investor rate, capped at 28%. Most Kernel funds hold the shares in their index directly rather than through an offshore ETF, which avoids the extra layer of tax leakage a fund-of-ETFs structure carries.

This guide outlines what the Kernel KiwiSaver Plan is, what it offers and how it differs from other KiwiSaver providers. We cover:
Please note: MoneyHub is not a Financial Adviser, and this guide has been published to explain the investment fundamentals and outline the pros and cons of Kernel as a KiwiSaver provider.​

Why does this page link to Kernel?
  • Kernel is a MoneyHub commercial partner: it pays a flat monthly fee to sponsor some of our guides. It doesn't pay for this review, and it doesn't pay per click or sign-up from the links on this page.
  • The fee doesn't set the figures - they come from each provider's published terms - and it doesn't change our view that Simplicity is slightly cheaper on diversified funds, or that anyone who wants a manager picking shares (active management) should look elsewhere.

The Specs of Kernel's KiwiSaver Funds

The Kernel KiwiSaver Plan offers four ready-made diversified funds, with the option to customise your plan instead using any mix of the 23 Kernel funds available in KiwiSaver (Kernel runs 28 funds in total; its four bond funds and the Total World Fund are not available in the Plan). In addition, you can see up-to-date performance data for each fund here.

Diversified funds:
  1. The Kernel High Growth Fund holds over 98% growth assets (shares and listed property). It is Kernel's flagship and where most members' money sits.
  2. The Kernel Balanced Fund - 60% shares, 40% cash and bonds.
  3. The Kernel Conservative Fund - 30% shares, 70% cash and bonds. Kernel's newest ready-made fund; it does not yet have a one-year track record.
  4. The Kernel Cash Plus Fund - short-term interest-bearing assets, NZ fixed income and floating rate notes. No shares.

The other 19 funds you can use to customise your KiwiSaver Plan (all 0.25% p.a. unless noted):
  • Kernel NZ 20 Fund - 20 of the largest NZX-listed companies (e.g. Spark and Fisher & Paykel Healthcare).
  • Kernel NZ 50 ESG Tilted Fund - the S&P/NZX 50 companies, re-weighted on sustainability scores.
  • Kernel NZ Small & Mid Cap Opportunities Fund - NZX companies outside the NZ 20 valued between $100 million and $1 billion (e.g. Briscoes, Hallenstein Glasson and NZX).
  • Kernel NZ Commercial Property Fund - the listed NZ property companies (Goodman Property, Kiwi Property, Precinct Properties and others): office buildings, industrial estates and shopping malls.
  • Kernel Australia 100 Fund - the 100 largest companies on the ASX, including the big banks and miners.
  • Kernel Global 100 Fund and Global 100 (NZD Hedged) Fund - 100 blue-chip companies across major markets (e.g. Apple, Microsoft and Nestlé); the hedged version removes most of the NZ dollar effect.
  • Kernel S&P 500 (Unhedged) Fund and S&P 500 (NZD Hedged) Fund - the 500 largest US-listed companies, with or without currency hedging.
  • Kernel World ex-US Fund and World ex-US (NZD Hedged) Fund - developed markets outside the United States.
  • Kernel Emerging Markets Fund (0.45% p.a.) - companies in emerging economies including China, India and Taiwan.
  • Kernel Global ESG Fund and Global ESG (NZD Hedged) Fund - a global portfolio re-weighted on S&P Global ESG scores and Paris Agreement alignment.
  • Kernel S&P Global Dividend Aristocrats Fund - companies with at least ten years of stable or rising dividends; about 60% US, then Canada and the UK, weighted to financials, utilities and property.
  • Kernel Global Infrastructure Fund and Global Infrastructure (NZD Hedged) Fund - utilities, storage, transport and telecommunications infrastructure: energy producers, airports and water companies.
  • Kernel Global Property (NZD Hedged) Fund (formerly Global Green Property) - global real estate companies, weighted towards sustainable practices.
  • Kernel S&P Global Clean Energy Fund (0.45% p.a.) - wind, solar and hydro generators and renewable manufacturers worldwide.

Bonus: Unlike many other KiwiSaver funds that retain 5% or 10% in cash, even in growth funds, Kernel's single-sector share funds are close to fully invested in their index (typically 99%+), so you are not paying a share-fund fee on money sitting in cash.

Know This: Kernel's cheapest fund isn't in KiwiSaver. The Total World Fund (0.12% p.a., launched 2026) is only available on Kernel's paid Plus and Premium investing plans, and Kernel says there are no plans to add it to KiwiSaver.

How can I find more information about the funds and their performance?

Recent returns, fees, holdings and a factsheet are published for every fund on Kernel's fund page, and the KiwiSaver Plan's quarterly fund updates are on its resources page. You can also download the latest Statement of Investment Policy and Objectives (SIPO), which outlines the Plan's philosophy and strategy via the Kernel KiwiSaver Plan website.

Know This - Kernel also offers portfolio-based investing, so your KiwiSaver performance won't align with any one fund

  • Kernel offers 23 funds inside the Plan to build a personalised portfolio, so your KiwiSaver money will be split up into the Kernel funds based on your selection and apportionment.
  • For example, an investor may decide to invest 25% of their money into the Global Infrastructure Fund, 50% into the Global 100 Fund and 25% into the S&P Global Clean Energy Fund. Investors can alter this allocation at any time.
  • Investing in a custom portfolio of funds is optional - Kernel's High Growth, Balanced, Conservative and Cash Plus Funds are all diversified funds, so investors are diversified even if they invest in only one fund.

Who is the Kernel KiwiSaver Plan Suited to?

  • Best for: KiwiSaver members with short, medium or long-term horizons who want index funds at 0.25% p.a. with no membership fee, and the option to pick their own mix. 
  • Also suitable for: Anyone wanting more than a standard 'Growth' fund - a 98%+ shares option, or a specific slice of the world (the US, Australia, emerging markets, NZ property).
  • Unlike many KiwiSaver options currently in the market, the Kernel High Growth Fund holds 98%+ in growth assets. Comparatively, most other providers have 20-25% of their growth funds in non-growth assets such as bonds and/or cash. Being primarily growth assets, the Kernel High Growth Fund can be more susceptible to short-term fluctuations yet have greater long-term growth potential.
  • Not suitable for: KiwiSaver participants looking for active funds that aim to beat the markets year on year.

Standout Features:
  1. The Kernel KiwiSaver Plan offers the ability to customise your portfolio and invest in some funds that are not offered by most KiwiSaver schemes. These include funds for clean energy, sustainably weighted global property, ESG-tilted global and NZ shares, emerging markets and NZ small and mid caps. They sit alongside the core Kernel funds covering the S&P 500, global infrastructure, the NZX, the ASX and the 100 largest companies listed across the globe.
  2. Kernel's fees are among the lowest in KiwiSaver. Its 0.25% p.a. (0.45% for the Clean Energy and Emerging Markets funds) is one basis point above Simplicity's 0.24% on diversified funds, and well under the roughly 1% p.a. average for a growth fund. Where Kernel stands alone is choice at that price: SuperLife, the other index scheme that lets you pick single-sector funds, charges 0.49% to 0.73% plus $30 a year.
  3. Kernel doesn't charge a member or account fee for any KiwiSaver member. While some schemes are eliminating this annual fee, some still charge it.
  4. Where Simplicity comes out ahead: 0.24% against 0.25% on diversified funds; ethical exclusions applied across every fund rather than offered as options; and scale - over $12 billion and 200,000 members across its KiwiSaver and investment funds (July 2026) against Kernel's $4.8 billion and 70,000. SuperLife's edge is Age Steps, which shifts your mix automatically as you age.

Kernel KiwiSaver Plan - Frequently Asked Questions

Kernel is an easy KiwiSaver scheme to understand, but we've listed some common queries and helpful answers below to bring to attention what we feel is important and useful to know:

Who invests my money?

Kernel manages its funds by buying shares in companies to match their weight in the respective index the fund tracks. We address the safety and regulation of Kernel in the 'is it safe for me to invest?' question below.

If I invest with Kernel, is my money going into the sharemarket?

Mostly. The High Growth Fund and all the single-sector share funds are invested in shares; the Balanced and Conservative Funds hold 60% and 30% in shares with the rest in cash and bonds; the Cash Plus Fund holds no shares at all. Every fund holds many companies, so one or two getting into trouble has a small effect. It does not protect you from a fall across the whole market.

How big is Kernel?

Kernel's website puts total money under management at over $4.8 billion for more than 70,000 customers (September 2026). The KiwiSaver Plan, launched in May 2022, is growing but for now remains one of the smaller schemes; the funds inside it are the same ones Kernel runs on its investing platform.

The Kernel KiwiSaver Plan started in 2022 - can I trust it, and is it safe for me to invest?

  • Yes - all KiwiSaver providers must comply with many strict rules to ensure the funds of their clients (i.e. what KiwiSaver investors put in) are kept completely separate from the funds used to run their schemes (i.e. money to pay the staff and run the business).
  • Trustees Executors Limited is the Plan's supervisor and the legal owner of the fund assets; administration, custody and unit pricing are provided by Adminis NZ and MUFG Pension & Market Services (NZ).
  • Kernel is also licensed by the Financial Markets Authority. 
  • ​Should Kernel close down, your funds would transfer to another provider under the KiwiSaver rules. With regards to whether it’s safe to invest, no fund performance is guaranteed, but the risk profile indicates where your money will be invested. This is the case with any KiwiSaver scheme and not unique to Kernel.
  • For example, if a Kernel fund went ‘bad’ and dropped significantly in value, your investment value would drop. If you've invested in other funds, this may lower the overall decrease (if the other funds have performed better). Each fund has specific risks. Many Kernel funds have performed well to date, but there are always risks. 
  • Kernel says most members start with one of its ready-made diversified funds; High Growth is its flagship and held over 60% of the Plan's money at 31 March 2026.

The KiwiSaver Index Fund Competition - Kernel vs Simplicity vs SuperLife

Kernel is most closely rivalled by Simplicity and SuperLife, which also offer KiwiSaver growth-focused index funds and compete on fees.

The specifics (as at 1 September 2026):
  • Kernel: 23 funds in the Plan - 0.25% p.a. on 21 of them (including the four ready-made funds), 0.45% p.a. on the two specialty funds. No membership fee.
  • Simplicity: six diversified funds, from Defensive to High Growth, all 0.24% p.a. No membership fee. (Simplicity's 0.10% to 0.15% funds are in its separate Investment Funds range and are not available in KiwiSaver.)
  • SuperLife: around 50 investment options; its index funds carry fund charges of 0.49% to 0.73% p.a. (High Growth 0.63%), plus a $30 a year administration fee unless all your money is in its Default Fund (0.20%).

Let's calculate the annual fees on a $10,000 balance in each scheme's High Growth fund:
  • Kernel = $10,000 x 0.25% = $25
  • Simplicity = $10,000 x 0.24% = $24
  • SuperLife = $10,000 x 0.63% + $30 = $93

And on a $50,000 balance:
  • Kernel = $50,000 x 0.25% = $125
  • Simplicity = $50,000 x 0.24% = $120
  • SuperLife = $50,000 x 0.63% + $30 = $345

Why we don't name a best: The price difference between Kernel and Simplicity is small, and not a reason to pick either. The real differences are choice (Kernel's 23 funds against Simplicity's six) and what the funds hold (Simplicity applies ethical exclusions across every fund; Kernel offers ESG-tilted funds as options alongside unscreened ones).

The Bottom Line:

  • The Kernel KiwiSaver Plan is, in a nutshell, low-fee, innovative and offers diversification.
  • Similar to most other KiwiSaver schemes, Kernel offers KiwiSaver funds suitable for investors with short, medium and long-term investment time horizons. Specifically, Kernel offers High Growth, Balanced, Conservative and Cash Plus Funds, and the option to build your own mix from the 23 funds in the Plan.
  • Kernel offers its investing platform to any KiwiSaver member. This gives KiwiSaver members the ability to manage their savings, investments and KiwiSaver online with one login.
  • This approach (multiple fund choices and mixing allocations) is similar to that of SuperLife and InvestNow KiwiSaver.
  • The Kernel KiwiSaver Plan delivers a friendly user experience; your dashboard breaks down your total fund invested into components, including returns since you joined. Unit prices are updated every business day (each price is at least two business days old).
  • The Kernel KiwiSaver Plan is suitable for those with a short, medium or long-term time horizon. It offers low fees and the choice to customise with 23 Kernel funds, or pick one of four ready-made diversified funds.

Be aware:

  • Kernel KiwiSaver won't be for everyone. If you want a manager picking shares and trying to beat the market, look at actively managed schemes like Milford KiwiSaver or Fisher Funds KiwiSaver instead - Kernel's funds track their index and will never beat it.

Must-Know Facts about the Kernel KiwiSaver Plan

Your KiwiSaver balance will be largely based on the rise and fall of sharemarkets

Depending on the performance of the underlying Kernel funds you're invested in, the movements in New Zealand, Australian and overseas share prices will affect the value of your investment.

We believe long-term investment growth is essential to deliver a worthwhile retirement. What's important is not to look at the day-to-day, but the year-on-year return, which Kernel makes widely available in its fund performance table. Of course, markets are volatile, and individual shares are more so. Over long periods share indices have risen despite regular falls along the way, but that is history, not a guarantee.​

Kernel's KiwiSaver fees are some of the lowest in New Zealand

Within the Kernel KiwiSaver Plan, 21 of the 23 funds charge 0.25% p.a., including all four ready-made funds. Simplicity's diversified funds are one basis point cheaper at 0.24%; SuperLife, the other index scheme with single-sector choice, charges 0.49% to 0.73% plus $30 a year.

Kernel offers a proven investment model by investing in index funds

Most actively managed funds fail to beat their index over long periods. S&P's SPIVA scorecard for 2025 found 79% of active large-cap US funds underperformed the S&P 500 that year, and 90% did over 15 years per our SPIVA guide. Index funds give you the market's return minus a small fee; they don't reduce the market's ups and downs.

Kernel takes a flexible approach to KiwiSaver

Traditional KiwiSaver schemes put you in one fund, be that 'growth', 'conservative' or 'balanced'. Kernel allows you to choose between doing this, or investing 100% of your KiwiSaver in any of its funds. These cover everything from New Zealand property to global infrastructure assets. Kernel also has ESG-tilted and clean energy funds. In summary, the Kernel KiwiSaver Plan is low-cost, wide-ranging and flexible.​

Kernel isn't the only index fund on the market

Within KiwiSaver, Simplicity and SuperLife are two of a handful of index-based KiwiSaver schemes. On fees, Simplicity's diversified funds (0.24%) edge Kernel's (0.25%) by one basis point; Kernel is the cheaper of the two schemes that let you pick single-sector index funds (SuperLife's start at 0.49% plus $30 a year).

How does Kernel compare with other options?