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.
This week, we have paid out the October 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 reflects the investments made by the fund as if an investor held the companies comprising the fund for the whole quarter, and as a result, 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 and aligned to the FIF tax regime which depends on an investor’s valuation, not their income received. Tax credits are separately credited to investors who are invested on the day the fund receives the dividend.
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. The details for each fund are as follows:
Kernel NZ 20 Fund
The distribution amounts to 0.82% of the current value of the NZ 20 Fund. This is based on dividends received from 12 of the underlying 20 companies. Based on current valuations and historic dividends, the indicative annual dividend yield is 2.10%.
This distribution comprises 89% of income received or accrued and 11% of capital.
Kernel NZ Small & Mid Cap Opportunities Fund
The distribution amounts to 0.69% of the current value of the NZ Small & Mid Cap Opportunities Fund. Just 13 of the 43 companies in the fund paid out during the quarter. Based on current valuations and historic dividends, the indicative annual dividend yield is 2.26%.
This distribution comprises 73% of income received or accrued and 27% of capital.
Kernel NZ Commercial Property Fund
The distribution amounts to 0.69% of the current value of the NZ Commercial Property Fund. 7 of the 8 companies in the fund paid out during the quarter. Based on current valuations and historic dividends, the indicative annual dividend yield is 3.40%.
This distribution comprises 93% of income received or accrued and 7% of capital.
Kernel S&P NZ 50 ESG Tilted Fund
The distribution amounts to 0.66% of the current value of the Kernel S&P NZ 50 ESG Tilted Fund. 20 of the 50 companies in the fund paid out during the quarter. The index as the benchmark is showing an indicative 12-month dividend of 2.56%. This distribution comprises 46% income received and 54% capital
Kernel S&P Global 100 Fund
The distribution amounts to 0.38% of the current value of the Kernel S&P Global 100 Fund. 52 of the 101 companies in the fund paid out during the quarter. Based on current valuations and historic dividends, the indicative annual dividend yield is 1.53%.
This distribution comprises 62% income received and 38% capital.
Kernel Global Infrastructure Fund
The distribution amounts to 1.42% of the current value of the Kernel Global Infrastructure Fund. 64 of the 104 companies in the fund paid out during the quarter. Based on current valuations and historic dividends, the indicative annual dividend yield is 3.41%.
This distribution comprises 59% income received and 41% capital.
Kernel S&P Global Dividend Aristocrats Fund
The distribution amounts to 0.92% of the current value of the Kernel Global Dividend Aristocrats Fund. 68 of the 89 companies in the fund paid out during the quarter. Based on current valuations and historic dividends, the indicative annual dividend yield is 3.99%. This distribution comprises 82% income received and 18% capital.
Kernel S&P Global Clean Energy Fund
The distribution amounts to 0.33% of the current value of the Kernel S&P Global Clean Energy Fund. 20 of the 81 companies in the fund paid out during the quarter. The index as the benchmark is showing an indicative 12-month dividend of 1.64%. This distribution comprises 60% income received and 40% capital.
Kernel Global Green Property Fund
The distribution amounts to 0.92% of the current value of the Kernel Global Dividend Aristocrats Fund. 145 of the 240 companies in the fund were paid out during the quarter. The index as the benchmark is showing an indicative 12-month dividend of 3.08%. This distribution comprises 74% income received and 26% 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.