Kernel Wealth Review

Kernel Wealth Review

Kernel is a New Zealand fund manager built around a simple idea: a small number of index funds, a handful of membership tiers, and no brokerage on US share trades. It offers index funds, KiwiSaver, US shares and ETFs, and its pricing page lists three tiers — Core, Plus and Premium — with management fees from 0.25% to 0.50% per annum on Core, and 0.12% to 0.50% on the two paid tiers.

What makes Kernel unusual is where it makes its money. Brokerage on US shares and ETFs is $0 on every tier. The tier you pick changes your foreign exchange fee, not your trading cost: 1.50% on Core, 0.60% on Plus, 0.40% on Premium. That single design choice tells you most of what you need to know about who the platform is built for.

The membership fees are $5 a month or $50 a year for Plus, and $15 a month or $150 a year for Premium. Core is free. Transaction fees are $0 on all three tiers, and there are no minimums on funds.

How We Researched This Guide

We worked from Kernel's own pricing page and published fund information, then checked the surrounding figures against the original providers rather than any comparison table. The High Growth Fund's charge is a good example of why that matters: the fund update for the quarter ended 30 June 2026 records total fund charges of 0.25% for the year to 31 March 2026, made up of a 0.25% manager's basic fee and 0.00% other management and administration charges, inclusive of GST. We used that figure, not a rounded version of it.

For the tax section we went to Inland Revenue and to the bill itself. Budget 2026 proposed doubling the foreign investment fund de minimis from $50,000 to $100,000 of cost price, but that change sits in a bill introduced to Parliament on 10 September 2026 and has not been enacted. Until it passes, $50,000 remains the live threshold — the proposal is set out in full on legislation.govt.nz for anyone who wants to follow it through the House.

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Simplicity is a nonprofit KiwiSaver and investment fund manager charging 0.25% p.a. across all six KiwiSaver funds. 100% owned by the Simplicity Foundation, a registered charity. Over 190,000 members. Seven rounds of fee cuts since launch in 2016. 15% of management fees are donated to NZ charities. Founded by Sam Stubbs (ex-Tower Investments CEO, Goldman Sachs).

The Quick Summary (60-Second Version)

Here is the short version if you are deciding today.

• Core is free, with management fees of 0.25% to 0.50% per annum and no transaction fees.
• Plus costs $5 a month or $50 a year and cuts management fees to as low as 0.12%.
• Premium costs $15 a month or $150 a year, with the same fee range as Plus.
• US share and ETF brokerage is $0 on every tier, so the FX fee is the only trading cost.
• The FX fee drops from 1.50% on Core to 0.60% on Plus and 0.40% on Premium.
• KiwiSaver has no member fee at any tier, and management fees sit at 0.25% to 0.50%.

What Kernel Actually Costs You

The membership tier is the lever, and it works differently depending on what you hold. For someone using only New Zealand dollar index funds and never converting currency, the free Core tier is sufficient — you pay the fund management fee and nothing else. The Plus and Premium discounts apply to the investment funds and the FX rate, not to KiwiSaver.

For US share and ETF investors, the maths flips. Kernel charges no brokerage on those trades, so the tier changes your conversion cost rather than your trading cost. Moving from Core to Plus drops the FX fee from 1.50% to 0.60%, and the membership costs $50 a year. Whether that pays depends entirely on how much currency you convert.

The High Growth Fund in Detail

The Kernel High Growth Fund holds over 98% growth assets such as shares and listed property, is globally diversified, and is designed for a time horizon of at least 5 years. Total fund charges are 0.25% per annum of the fund's net asset value, all of which is the manager's basic fee, with zero other management and administration charges.

How Kernel Compares With Other Platforms

Kernel is a fund manager, not a full brokerage. You cannot buy individual New Zealand or Australian shares through it, so if you want to own a specific listed company directly, you need a separate account. That is the main structural limitation, and it is worth knowing before you commit.

Where Kernel sits relative to the alternatives depends on your order pattern. Sharesies charges 1.9% of the amount invested or sold, capped at $25 per NZX order, $15 AUD per Australian order and $5 USD per US order. That makes it a low-cost option for small and frequent orders, and the cap means the fee never exceeds $25 on an NZX order however large it is. There is no transaction fee on managed fund orders.

InvestNow charges no platform fee and no KiwiSaver administration fee, with the manager and fund fees the only cost. But its Foundation Series funds carry a 0.50% buy transaction fee and a 0.50% sell transaction fee, which applies to every contribution and every withdrawal. For money you contribute once and hold for years, the low annual fee dominates. For money you move in and out, that round trip can outweigh a year of savings.

If You Want US Shares Instead

Tax, Fees and the Part Nobody Explains

Most New Zealand managed funds are structured as portfolio investment entities. An unlisted managed fund is usually a multi-rate PIE, where tax is calculated at your own prescribed investor rate and the manager handles the calculation and payment to Inland Revenue. An NZX-listed ETF is usually a listed PIE, where the fund pays tax at a flat 28% inside the fund. Resident individual PIR rates are 10.5%, 17.5% and 28%.

If your marginal tax rate is 33% or 39%, a PIE caps your tax on investment income at 28%. Check your rate whenever your income circumstances change — Inland Revenue may square up overpaid or underpaid PIE tax after the year ends.

The Offshore Threshold

Offshore-domiciled ETFs and foreign shares bought through a platform sit outside the PIE regime. For natural persons, the FIF rules do not apply while the total cost of your offshore attributing interests is $50,000 or less, measured on what you paid for them regardless of current value. Above that, tax is generally calculated on a deemed return — under the fair dividend rate method, an individual is generally taxed on 5% of the opening market value, and dividends and capital gains are not usually taxed separately.

That $50,000 figure is the law in force. The proposed increase to $100,000 has not been enacted, so if your cost basis sits between the two numbers, watch how it moves through Parliament before changing anything.

Questions You Might Have

Is Kernel cheaper than Sharesies?

They do different jobs, so the answer depends on what you buy. Kernel charges no transaction fees on funds and no brokerage on US shares, with costs sitting in the management fee and FX rate. Sharesies charges 1.9% per transaction, capped at $25 on NZX orders. For small, frequent orders Sharesies is competitive; for ongoing fund investing, Kernel's structure is usually cheaper.

Do I need the Premium tier?

Only if you convert currency regularly. Premium drops the FX fee from 1.50% on Core to 0.40%, but it costs $150 a year. If you hold New Zealand dollar funds and never touch US shares, Core is free and sufficient. If you buy US ETFs in meaningful amounts, the FX saving can cover the subscription.

Can I buy New Zealand shares through Kernel?

No. Kernel is a fund platform with US share and ETF access, not a full brokerage. There is no way to buy individual NZX or ASX-listed companies directly. If you want to own a specific New Zealand company, you will need a separate account with an NZX firm.

Is my money safe with Kernel?

Kernel is a licensed New Zealand fund manager, which means it is authorised by the FMA and subject to a code requiring it to treat clients fairly and with integrity. You can check any provider on the Financial Service Providers Register, and it must belong to a dispute resolution scheme. Always check the FMA's warnings list before paying anyone.

What does the FIF threshold mean for me?

If the total cost of your offshore investments is $50,000 or less, the foreign investment fund rules do not apply to you as a natural person. Above that, tax is generally calculated on a deemed return rather than actual dividends and gains. The proposed increase to $100,000 has not been enacted, so $50,000 remains the live threshold.

What Matters Most

Kernel's pricing is genuinely simple, and that is its main selling point. A free tier, two paid tiers, no transaction fees, and no brokerage on US shares. The tier you choose changes your FX rate rather than your trading cost, which is an unusual structure and one that rewards investors who know how much currency they convert each year.

What matters more than the platform, though, is the pattern you invest in. The biggest determinant of a beginner's outcome is not platform choice or fund selection — it is the amount invested regularly over a long period and the fees paid. A low-cost diversified fund held for years with consistent contributions will usually beat a carefully picked share portfolio that is traded in and out of and charged brokerage on every move.

So if you are choosing between Kernel and something similar, look at your own behaviour first. If you contribute monthly and hold, the free Core tier may be all you need. If you convert currency often, do the FX maths before deciding the membership fee is not worth it.