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.
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 30 June 2026.
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 31 July 2026): $2.5400
Date the fund started: 19 September 2016
Fund returns
| PIR | 1 Month | 3 Month | 1 Year | 3 Years^ | Total since inception^ |
|---|---|---|---|---|---|
| 28% | 1.47% | 4.43% | 10.68% | 9.63% | 7.89% |
^ 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 | 10.15% |
| 2 | Commonwealth Bank of Australia Limited | 7.20% |
| 3 | Australia and New Zealand Banking Group Limited | 4.20% |
| 4 | Westpac Banking Corporation | 3.92% |
| 5 | National Australia Bank Limited | 3.32% |
| 6 | BNZ Transactional Account NZD | 2.94% |
| 7 | Macquarie Group Limited | 2.88% |
| 8 | CSL Limited | 2.73% |
| 9 | Rio Tinto Limited | 2.57% |
| 10 | Goodman Group | 2.32% |
| Top 10 investments total | 42.23% | |
Portfolio Holdings
Summer Australian Equities Portfolio Holdings
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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 2.53% for the month of July, significantly outperforming its benchmark* return by 1.34%. For the 12 months to the end of July, the fund delivered a return after fees and before tax of 8.88% underperforming its benchmark* return by -1.38%.
Key positive contributors were our overweight positions in Viva Energy (VEA), South32 and AMP.
Viva Energy (VEA) outperformed following a strong second-quarter trading update, with EBITDA guidance approximately 10% above market expectations. The upgrade was driven by favourable hedging and supply arrangements within its Commercial & Industrial segment, alongside stronger refining margins. South32 announced the sale of its aluminum business (excluding Mozal) to Alcoa for US$5.6 billion. The market responded positively, viewing the transaction as a strategic step towards increasing the company's exposure to base metals, where it sees favourable long-term demand fundamentals. AMP released first-half FY26 guidance ahead of market expectations, driven by a stronger-than-anticipated contribution from its China partnerships.
The key detractors from performance were our overweight position in Next DC and our underweight positions in Commonwealth Bank of Australia (CBA) and Woodside Energy (WDS).
Next DC underperformed through July amid a sharp, AI-capex-driven sell-off, as investors once again questioned the returns on the large sums of cash being spent. Two key events stoked these fears: first, Meta's announcement that it planned to rent out surplus compute capacity; and second, Nvidia's partial guarantee of financing for OpenAI's 10GW data centre[JP1.1].
CBA had a strong month alongside the broader financials sector, benefiting from the inverse of this market reaction as investors rotated into the liquid, defensive banks listed on the ASX — this was despite rising concerns about the slowing Australian housing market and broader economic cycle. Woodside rallied in-line with the change in the oil price.
We actively manage the fund's foreign currency exposure associated with Australian equities. During the month, the NZ dollar rallied 1.89% against the Australian dollar.
What happened in the markets you invest in?
The Australian equity market rose in July, despite an escalation of the conflict in the Middle East and rising investor uncertainty regarding the massive AI-related capital expenditure cycle. Five out of eleven sectors finished higher in July, unsurprisingly led by Energy (up 12.3%) after worsening tensions in the Middle East. Financials and Healthcare also had a strong month, as investors rotated into more defensive sectors.
What are we thinking about the future?
Australian CPI for the June quarter came in at 3.8% year-on-year, down from 4.0% and below both market and Reserve Bank of Australia (RBA) expectations, while the trimmed mean (the RBA's preferred inflation measure) held steady at 3.6%.
The softer-than-expected inflation print reduced the near-term risk of a further RBA hike. The RBA’s commentary continues to cite upside risks to inflation, particularly given the volatility in oil prices tied to the unresolved conflict in the Middle East and the pass-through of these higher input costs.
The labour market also remains resilient, with Australian employment rising by 76,300 in June and unemployment steady at 4.4%, giving the RBA little reason to ease policy despite the inflation undershoot. This, combined with the recent ruling from the Fair Work Commission, is likely to place upward pressure on wage growth in the short term.
We continue to watch the housing market closely. The downturn in dwelling values is now broadening beyond the two largest cities, with national values falling 0.7% in July. This comes at a time when the capital gains tax and negative gearing reforms from the Federal budget are removing support for investor demand.
*The benchmark for the fund is the S&P/ASX 200 Accumulation Index, 50% hedged to the NZ dollar.