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 December 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 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 0.48% of the current value of the NZ 20 Fund. This is based on dividends received from 9 of the underlying 20 companies. Based on current valuations and historic dividends, the indicative annual dividend yield is 2.45%.
This distribution comprises 98% income received or accrued and 2% capital.
Kernel NZ Small & Mid Cap Opportunities Fund
The distribution amounts to 0.78% 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 2.80%.
This distribution comprises 100% income received or accrued.
Kernel NZ Commercial Property Fund
The distribution amounts to 1.08% of the current value of the NZ Commercial Property Fund. All 8 companies in the fund paid out during the quarter. Based on current valuations and historic dividends, the indicative annual dividend yield is 3.52%.
This distribution comprises 97% income received or accrued and 3% capital.
Kernel S&P NZ 50 ESG Tilted Fund
The distribution amounts to 0.80% of the current value of the Kernel S&P NZ 50 ESG Tilted Fund. 24 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 2.69%. This distribution comprises 41% income received and 59% capital
Kernel S&P Global 100 Fund
The distribution amounts to 0.40% 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 1.56%.
This distribution comprises 70% income received and 30% capital.
Kernel Global Infrastructure Fund
The distribution amounts to 0.55% of the current value of the Kernel Global Infrastructure Fund. 60 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 3.34%.
This distribution comprises 79% income received and 21% capital.
Kernel S&P Global Dividend Aristocrats Fund
The distribution amounts to 0.86% of the current value of the Kernel Global Dividend Aristocrats Fund. 67 of the 92 companies in the fund paid out during the quarter. Based on current valuations and historic dividends, the indicative annual dividend yield is 4.11%. This distribution comprises 79% income received and 21% capital.
Kernel S&P Global Clean Energy Fund
The distribution amounts to 0.10% of the current value of the Kernel S&P Global Clean Energy Fund. 13 of the 75 companies in the fund paid out during the quarter. The index as the benchmark is showing an indicative 12-month dividend of 1.46%. This distribution comprises 81% income received and 19% capital.
Kernel Global Green Property Fund
The distribution amounts to 0.53% of the current value of the Kernel Global Dividend Aristocrats Fund. 179 of the 251 companies in the fund paid out during the quarter. The index as the benchmark is showing an indicative 12-month dividend of 2.97%. This distribution comprises 45% income received and 55% 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.