Summer Australian Equities
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 risk indicator is based on the returns data for the five years to 31 March 2026.
* 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.
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% |
Minimum suggested investment timeframe
Fund at a glance
Unit price (as at 30 April 2026): $2.2033
Date the fund started: 19 September 2016
Fund returns
| PIR | 1 Month | 3 Month | 1 Year | 3 Years^ | Total since inception^ |
|---|---|---|---|---|---|
| 28% | 2.32% | -1.05% | 13.79% | 9.22% | 7.80% |
^ 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 | 10.05% |
| 2 | Commonwealth Bank of Australia Limited | 7.06% |
| 3 | Westpac Banking Corporation | 4.45% |
| 4 | Australia and New Zealand Banking Group Limited | 4.17% |
| 5 | National Australia Bank Limited | 3.25% |
| 6 | CSL Limited | 3.11% |
| 7 | Macquarie Group Limited | 2.91% |
| 8 | Rio Tinto Limited | 2.75% |
| 9 | Goodman Group | 2.40% |
| 10 | Telstra Group | 2.16% |
| Top 10 investments total | 42.31% | |
Portfolio Holdings
SummerAE portfolio holdings data Sept2025
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Manager's Commentary
How did your portfolio perform?
The Summer Australian Equities Fund (the fund) delivered a return after fees and before tax of 2.22% during April. For the 12 months to the end of April, the fund delivered a return after fees and before tax of 13.01%.
The key positive contributors to performance in April were our overweight position in datacentre operator, NextDC along with holding no shares in medical device maker, Cochlear.
NextDC performed strongly during April after successfully completing a A$1.5bn equity raising. The funding was needed to support a significant increase in contracted capacity, now 60% higher than it was at the end of the calendar year, a sign of exceptional demand. The raising was completed at $12.70 a share with the stock closing the month at $14.24. Cochlear cut its FY26 earnings guidance by 30% at the midpoint with weaker demand, soft trading in the Middle East and gross margin compression among the factors called out by management. Your fund does not own Cochlear, preferring higher quality sector-peer Resmed in the medical device space.
The key detractors from performance were our overweight positions in two healthcare companies, CSL and Integral Diagnostics. Both stocks continued to drift lower during April. After delivering soft results in February, CSL and Integral Diagnostics both require higher earnings run rates in the second half to hit their FY26 guidance. Given an increasingly challenging operating backdrop, the market has shown less willingness to give them the benefit of the doubt.
We actively manage the fund’s foreign currency exposures associated with Australian equities. During the month, the NZD fell -1.68% against the Australian dollar (AUD).
What happened in the markets that you invest in?
The Australian equity market rose 2.18% in April, with a significant rebound from prior month losers in the Technology and Real Estate sectors. Real Estate rose 8.6% and Technology surged by 13.3% over the month.
Economic data released through April continued to point to an economy operating near its productive limits. The labour force data showed the unemployment rate remained flat at 4.3% with job creation still positive. Previous momentum in inflation stepped up yet again as early impacts of the current fuel shock showed up in the data, headline inflation was 4.6% for the year to 31 April.
What are we thinking about the future?
Rising interest rates, ongoing inflation pressure and potentially weaker economic growth bode poorly for activity levels in more cyclical parts of the Australian economy. Key sector exposures which are at greatest risk of EPS downgrades are concentrated in the consumer, retail and real estate space.
We are also wary of cost headwinds across some industrials, particularly related to fuel and other petrochemical related cost inputs. Those with limited pricing power and lagged cost recovery may see their margins suffer. Others with the right contractual structures should be able to pass this cost on.
Provided there is just a slowing (rather than collapse) in economic growth we continue to see a positive earnings backdrop for banks and insurers and have been adding to these positions.