Kernel

Global real asset classes, such as Listed Real Estate Investment Trusts (REITs) and Listed Infrastructure, are compelling additions to any diversified portfolio. Here's why.👇 As we navigate an evolving economic environment marked by easing monetary policy, investors are looking for assets offering stability, growth and income. These asset classes not only provide attractive dividend yields and inflation protection but also offer unique benefits that can enhance portfolio performance during periods of monetary easing. The 2022-2023 interest rate hike cycle has been one of the steepest in decades for various central banks. Throughout this period, the Global Listed REITs market, represented by the Dow Jones Global Select ESG REIT Index (NZD), has faced significant challenges, declining sharply by approximately 16.5% from its peak at the start of the rate hike cycle in March 2022 through to the trough in October 2023 - as shown below. Although there has been some recovery since the trough, the performance of REITs has remained subdued compared to Listed Infrastructure and broader global equities, reflecting the impact of tighter monetary conditions on the sector. In contrast, Listed Infrastructure has consistently demonstrated resilience over the same period, supported by stable cash flows and inflation-linked revenue streams, as highlighted in our research on global listed infrastructure. As we move into the last quarter of 2024, the global economy is at a turning point. After a challenging period of high interest rates aimed at controlling inflation, several central banks have already kicked off their easing cycles. Notably, the US Federal Reserve made a significant move in its first easing by cutting its benchmark rate by 50bps in response to slowing growth and cooling inflation. Read more in our latest blog in the comments below written by Kernel Research Analyst, Quynh Chi Nguyen. Figure 1: Global listed infrastructure, Global listed REITs vs. Global Equities (3 years to 31 August 2024)

It's not every day you get to see Luke Kemeys (CA) from Keep The Change in person, so the team made sure to jump at the opportunity 👀 Last week, our Marketing and Customer Success teams had the chance to meet one of their favourite Kiwi personal finance creators. It was inspiring to witness how Luke’s hard work has built such a motivated and dedicated community. Here are a few key takeaways from the evening: 📕 The stories we tell ourselves are powerful—make sure your internal narrative is working for you, not against you. 🎁 Keep delivering value to your audience and trust the process. 💭 Don't be afraid to dream big and think beyond your ingrained beliefs or narratives 😉 And of course, don’t forget to check in on your KiwiSaver. A big shoutout to everyone involved in organizing the event! Luke Kemeys (CA), you weren’t kidding—Jehan Casinader truly was an amazing speaker. The takeaways from his keynote were outstanding. We're looking forward to seeing how your next event goes! #personalfinance #investing #business #kiwisaver

Money Month may be over, but that doesn’t mean you should forget about supporting your staff’s financial well-being. Last month, in honor of Te Ara Ahunga Ora Retirement Commission’s Money Month, we hosted a series of financial well-being sessions at several businesses, led by Dean Anderson, Founder and CE of Kernel. It was great to see such a great turnout, with many people eager to improve their financial literacy and make the most of their money. If you’d like to support your staff’s financial well-being, we invite you to get in touch via the link in the comments below for a free financial well-being session. A special shoutout to Generator New Zealand, Adminis, KPMG New Zealand, New World NZ, PwC New Zealand, and BDO in New Zealand for having us! #FinancialWellbeing #MoneyMonth #Sorted #Kernel #FinancialLiteracy #Wellness #InvestInYourself

After two years of writing our monthly newsletter, The Seed, some of you may be wondering who 🪴Tim @ Kernel is. So, here’s his story. Opting to auto-invest and chill, Tim is on a mission to grow his wealth in the laziest and most consistent way possible, aiming to make his money work while he makes the most of his time. Read Tim’s story through the link in the comments below👇

Kernel platform 🤝 Beautiful design One of the things our customers (and we) love about Kernel so much is our interface - it's simple, intuitive and easy to use. What's not to love? #design #userexperience #platform #customerjourney #personalfinance #kernel

At Kernel, we just don't launch funds for the sake of it. We’re intentional about those we choose to bring to market. We do our homework to ensure funds will provide value and consider all the details - fees, tax, diversification and more.    Our latest range of fixed-interest funds are no exception, and in particular our two target maturity date bond funds.    Fixed Interest Portfolio Manager, Matthew Winton, explains in our latest blog the benefits of target maturity bond funds instead of holding bonds directly. These include: 💡 Access - these funds provide moderate diversification and exposure to wholesale bonds typically inaccessible to retail investors.    💡 Tax treatment - These funds are subject to PIE tax treatment, which can present favourable tax characteristics for investors in the top tax rate - as shown in the image below. With the trust tax rate increasing to 39% investors across the board are seeking out the benefits of the PIE regime, with tax capped at 28%.   💡 Liquidity - Invest in bonds through a fund with as little as $1; these funds are accessible for a range of investors. Read the full blog via the link in the comments.👇 *Fair assumption that the fund can maintain the same yield as its hypothetical proxy. Due to the ongoing optimisation of the portfolio, it might be possible to achieve a higher running yield. This example has been simplified to illustrate a point. Other personal or investment factors have not been considered.

Introducing our new business page - now live over on the Kernel website! Whether you sit on an Investment Committee and are interested in our funds, or would like to enable your employees to grow their wealth through group solutions, we can help. Find out more about partnering with Kernel via our new page: https://lnkd.in/gY-UCzDh #business #partnerwithkernel #website #brand

Last month the Kernel KiwiSaver Plan hit 5,000 members, just 16 months since launch. 🥂🥂 We're thrilled and very grateful to all the Kiwis who have chosen to grow their nest egg with Kernel. To say a big thank you to the team behind it, for all the hard work that goes into reaching this milestone, last week we hosted a mid-winter team lunch. Naturally, this included new branded Kernel merch and corresponding 'merch store', recycled secret Santa and a Kernel-themed quiz. 👏 As we approach our 5th birthday this month, we're excited to continue growing our offering and platform capabilities to support great financial outcomes for Kiwis. #celebrate #fifthbirthday #midwinterchristmas #merch #kiwisaver #personalfinance

👀 The OCR may be down, but our boosted Smart Saver rate isn’t! Earlier this week, the Reserve Bank of New Zealand (RBNZ) decided to reduce the Official Cash Rate (OCR) by 0.25% from 5.50% to 5.25%.    How does this impact you? The OCR influences all interest rates in New Zealand. Therefore a reduction may lead to lower rates on your savings accounts. On the flip side, mortgage rates may start to come down - something we have already seen occur in the rates offered by major banks over the past week or so. BUT, we’re excited to tell you that despite the OCR decrease, we’re continuing our boosted Smart Saver rate of 5.25% p.a* until further notice. So, you can keep making the most of your savings during Sorted's (Te Ara Ahunga Ora Retirement Commission) Money Month! Even better is that you don't need to do anything special to receive the boosted rate. The rate will be automatically applied when using a Kernel Smart Saver account. Learn more about Smart Saver through the link in the comments. 👇 #saving #personalfinance #moneymonth #save #ocr

The average first home buyer withdrawing money from their KiwiSaver is 37 years old. Many Kiwis are laser-focused on using their KiwiSaver to secure a first home deposit. In fact, 36% of Kernel’s KiwiSaver Plan withdrawals in 2024 so far, have been for this very reason. But does using your KiwiSaver balance for your first home potentially overshadowing your long-term financial security? It’s clear that KiwiSaver is seen as serving two distinct purposes: 🏡 Getting into the property market 💰 Securing your retirement But with rising property prices and stagnant wages, the average age of home ownership is creeping higher. This delay pushes the focus on building up KiwiSaver balances for retirement further down the track. The challenge? How do you balance the financial push to own your first home without compromising your future retirement savings? Kernel Head of Customer Strategy, Catherine Emerson, explains more in Interest.co.nz' recent article in the comments below. #KiwiSaver #PersonalFinance #FirstHome #RetirementPlanning #NZFinance