Summer Australian Equities
Summary of investment objective and strategy
To achieve long-term returns (before fees, taxes and other expenses) greater than the S&P/ASX 200 Accumulation Index, 50% hedged to the New Zealand dollar.
These investments typically have very high levels of movement up and down in value.
Strategic investment mix
| Category | % |
|---|---|
| Cash and cash equivalents | 5.00% |
| New Zealand fixed interest | 0.00% |
| International fixed interest | 0.00% |
| Total income assets | 5% |
| Australasian equities | 85.00% |
| Listed property | 10.00% |
| International equities | 0.00% |
| Total growth assets | 95% |
| Total portfolio | 100% |
Risk indicator
The risk indicator is rated from 1 (low) to 7 (high). The rating reflects how much the value of the fund’s assets goes up and down (volatility). A higher risk generally means higher potential returns over time, but more ups and downs along the way.
* The composite benchmark for each multi-asset class fund is made up of the single asset class benchmarks weighted by the target asset allocation for the asset class.
Minimum suggested investment timeframe
At least five years
Fund at a glance
Unit price (as at 31 January 2026): $2.2336
Date the fund started: 18 October 2019
Fund returns
| PIR | Total since inception^ | 1 Month | 3 Month | 1 Year | 3 Years^ |
|---|---|---|---|---|---|
| 28% | 8.14% | 1.41% | 1.66% | 7.25% | 8.89% |
^ Annualised
Fund returns are calculated net of fund charges, trading expenses and accrued tax for a New Zealand resident individual paying tax at the Prescribed Investor Rate identified above.
Top 10 investments
| # | Asset name | % of fund net assets |
|---|---|---|
| 1 | BHP Group Limited | 9.32% |
| 2 | Commonwealth Bank of Australia Limited | 6.12% |
| 3 | Westpac Banking Corporation | 4.49% |
| 4 | CSL Limited | 4.28% |
| 5 | Australia and New Zealand Banking Group Limited | 3.81% |
| 6 | National Australia Bank Limited | 3.42% |
| 7 | Macquarie Group Limited | 2.65% |
| 8 | Rio Tinto Limited | 2.58% |
| 9 | Goodman Group | 2.47% |
| 10 | Telstra Group | 2.13% |
| Top 10 investments total | 41.27% | |
Manager's Commentary
How did your portfolio perform?
The Summer Australian Equities Fund (the fund) delivered a return after fees and before tax of 1.42% during January. For the 12 months to the end of January, the fund delivered a return after fees and before tax of 7.45%.
Key positive contributors to performance in January were our underweight position in Commonwealth Bank (CBA) and our overweight position in diversified mining company, South 32. CBA underperformed despite what looks like an increasingly positive macroeconomic backdrop for the lender. The company has experienced a valuation de-rating from lofty heights with this and other financials being used as a funding source to buy resources as commodities rally. South32 has benefited strongly from the rally across industrial metals.
Key detractors from performance in January were our overweight position in fuel retailer, Viva Energy (VEA) and our underweight position in gold miner, Evolution Mining. VEA sold off late in the month after providing an underwhelming quarterly update. This showed a material slowdown in their convenience sales (tobacco sales in particular have been negatively impacted by the illicit trade) and slightly softer retail fuel volumes. Evolution Mining continued a stellar run through January driven by a continued strength in the gold price, albeit the appointment of Kevin Warsh as governor of the US Federal Reserve did drive a selloff in the precious metal.
We actively manage the fund’s foreign currency exposures associated with Australian equities. During the month the NZD increased 0.13% against the Australian dollar (AUD).
What happened in the markets that you invest in?
The Australian equity market rose 1.78% in January, led higher by the Energy and Materials sectors with Real Estate the weakest sector during the month. Economic data showed the economy continued to run hot in January. The December monthly CPI accelerated to 3.8% y/y up from 3.4%, led by housing related costs. Labour market data remains robust, with the unemployment rate sitting at 4.1% and labour costs rising 3.4% y/y, ahead of the Reserve Bank of Australia’s CPI target.
What are we thinking about the future?
The technology sector has had a horror run over recent quarters and January saw a continuation of this weakness. A further sell-off was triggered across the sector as investors contemplate the risk of AI disruption to the software as a service (SaaS) based business model. The key concern is whether the seat-based licensing model can survive in a world where agentic AI changes the size and scope of the white-collar workforce.
Your fund has been adding to holdings in this space as the SaaS sell-off has been indiscriminate. We capitalised on this weakness, adding selected exposures where we expect revenue streams are stickier and more durable than the market is giving credit for. Furthermore, many of these companies have scope to benefit internally from AI induced productivity and related cost savings which will support operating margins.