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% |
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 December 2025): $2.2023
Fund returns
| PIR | Total since inception (annualised) | 1 Month | 3 Month | 1 Year | 3 Years^ |
|---|---|---|---|---|---|
| 10.5% | 8.62% | 1.24% | 0.68% | 9.79% | 11.33% |
| 17.5% | 8.39% | 1.30% | 0.72% | 9.74% | 11.14% |
| 28% | 8.04% | 1.40% | 0.80% | 9.66% | 10.85% |
^ 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 | 8.45% |
| 2 | Commonwealth Bank of Australia Limited | 6.29% |
| 3 | Westpac Banking Corporation | 4.71% |
| 4 | CSL Limited | 4.20% |
| 5 | Australia and New Zealand Banking Group Limited | 3.89% |
| 6 | ANZ transactional bank account | 3.48% |
| 7 | National Australia Bank Limited | 3.45% |
| 8 | Macquarie Group Limited | 2.61% |
| 9 | Rio Tinto Limited | 2.58% |
| 10 | Goodman Group | 2.57% |
| Top 10 investments total | 42.23% | |
Manager's Commentary
How did your portfolio perform?
The Summer Australian Equities Fund (the fund) delivered a return after fees and before tax of 1.15% during December. For the 12 months to the end of December, the fund delivered a return after fees and before tax of 9.86%.
Key positive contributors to performance in December were our overweight position in travel agency Flight Centre and our underweight position in healthcare technology company Pro Medicus.
Flight Centre rose strongly after announcing the acquisition of UK-based online cruise agency Iglu. This was well received from a strategic point of view and supports the company’s growth aspirations in the higher margin cruise segment. Shares in Pro Medicus fell sharply in December as investors rotated out of the market’s most expensive names in healthcare and technology. However, Pro Medicus still trades at an eyewatering valuation of 120x forward earnings.
Key detractors from performance in December were our underweight position in Commonwealth Bank (CBA) and a selection of overweight positions in the healthcare sector.
CBA recovered in December after it’s weakness in November. Recent share price underperformance in the second half of 2025 has seen its valuation premium to other major banks narrow, prompting renewed interest in the name. We now see better value in CBA.
The broader healthcare sector was weak during the month, with our overweight positions in Resmed, CSL and Telix all detracting from portfolio performance as the market shifted away from healthcare in favour of cyclicals.
We actively manage the fund’s foreign currency exposures associated with Australian equities. During the month the New Zealand dollar fell -1.49% against the Australian dollar.
What happened in the markets that you invest in?
The Australian equity market rose 1.30% in December, led higher by index heavyweights in the Materials and Financial sectors; only one other sector (Real Estate) delivered a positive return. Economic data was mixed, September quarter GDP came in at 0.4% for the quarter and 2.1% YoY. Unemployment remains low at 4.3% and weak productivity means the economy cannot grow much without generating inflation, the CPI has remained above the Reserve Banks of Australia’s (RBA) target for some time now.
What are we thinking about the future?
Last month we added to our holdings in Australian banks, which proved timely as the sector rebounded strongly in December following weakness during the November reporting season. Resilient household incomes, rising house prices and stronger-than-expected credit growth are lifting earnings expectations in the banking sector, which benefits when the economy runs hot. Many economists now expect the first RBA rate hikes in 2026 with inflation still above target. That would likely cool the housing market, household spending and business investment. We remain constructive for now, but took the opportunity this month to increase our exposure to the more defensive technology and healthcare sectors given their weakness over the quarter.