Kernel funds pay out a quarterly distribution to investors in April, July, October and December. This is based on the dividends received from the underlying companies in which the Kernel funds invest.
Last week, we paid out the July 2021 distribution to each investor based on their preference of cash payment or distribution reinvestment. Ultimately the unit value is reduced by the cash amount (because it is already part of the fund’s value), but it provides investors with the choice of benefits from compounding through reinvestment, rebalancing or using the cash for other purposes. It also helps us operate an efficient structure. The details of the distributions per fund are below.
The distributions reflect the investments made by the fund, as if an investor held the companies that make up the fund for the whole quarter. As a result, the distributions might comprise a significant amount of capital distribution if the fund has grown proportionally during the quarter. This is aligned to the general treatment of all Kernel funds as well as the FIF tax regime, which depends on an investor’s valuation not their income received. Tax credits are separately credited to investors based on dividends received to the fund on the days they are invested in the fund.
The figures below exclude any capital growth and the tax on the income allocated to you, which will need to be paid in April or when you sell out of the fund. This delayed tax payment is one of the benefits of our product design. It also excludes any change in the amount of dividends paid by companies in the fund.
We distribute capital as part of providing investors in the fund the equivalent return they would receive from owning the underlying companies directly.
Kernel NZ 20 Fund
The distribution amounts to 0.392% of the current value of the NZ 20 Fund. This is based on dividends received from 7 of the underlying 20 companies. Based on current valuations and historic dividends, the indicative annual dividend yield is 2.06%.
This distribution comprises 86% income received or accrued and 14% capital.
Kernel NZ Small & Mid Cap Opportunities Fund
The distribution amounts to 0.501% of the current value of the NZ Small & Mid Cap Opportunities Fund. 11 of the 42 companies in the fund paid out. Based on current valuations and historic dividends, the indicative annual dividend yield is 2.18%.
This distribution comprises 67% income received or accrued and 33% capital.
Kernel NZ Commercial Property Fund
The distribution amounts to 1.021% of the current value of the NZ Commercial Property Fund. Based on current valuations and historic dividends, the indicative annual dividend yield is 3.30%.
This distribution comprises 93% income received or accrued and 7% capital.
Kernel S&P Global 100 Fund
The distribution amounts to 0.492% of the current value of the Kernel S&P Global 100 Fund. The S&P Global 100 index is showing an indicative 12-month dividend of 1.87%. This distribution comprises 41% income received and 59% capital.
Kernel Global Infrastructure Fund
The distribution amounts to 0.636% of the current value of the Kernel Global Infrastructure Fund. The index as the benchmark is showing an indicative 12-month dividend of 3.35%. This distribution comprises 73% income received and 27% capital.
Kernel S&P Global Dividend Aristocrats Fund
The distribution amounts to 1.427% of the current value of the Kernel Global Dividend Aristocrats Fund. The index as a benchmark is showing an indicative 12-month dividend of 4.73%. This distribution comprises 76% income received and 24% capital.
Kernel S&P Kensho Moonshots Innovation Fund
This fund does not distribute income, with all dividends reinvested.
Kernel S&P Kensho Electric Vehicle Innovation Fund
This fund does not distribute income, with all dividends reinvested.
Should you have any questions, please let us know.