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 30 June 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 June 2026): $2.2500
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 | 10.53% |
| 2 | Commonwealth Bank of Australia Limited | 6.70% |
| 3 | Westpac Banking Corporation | 3.90% |
| 4 | Australia and New Zealand Banking Group Limited | 3.85% |
| 5 | National Australia Bank Limited | 3.06% |
| 6 | Macquarie Group Limited | 2.97% |
| 7 | CSL Limited | 2.75% |
| 8 | Rio Tinto Limited | 2.71% |
| 9 | Goodman Group | 2.41% |
| 10 | Wesfarmers Limited | 2.26% |
| Top 10 investments total | 41.14% | |
Portfolio Holdings
Summer Australian Equities Portfolio Holdings
5 KB
Manager's Commentary
How did your portfolio perform?
The Summer Australian Equities Fund (the fund) delivered a return after fees and before tax of 1.46% during June. For the 12 months to the end of June, the fund delivered a return after fees and before tax of 9.91%.
Key positive contributors were our underweight positions in Woodside Energy and Commonwealth Bank along with an overweight position in Flight Centre. (FLT). FLT shares outperformed in June as the market disregarded a downgraded FY26 profit warning, viewing the cause as a temporary geopolitical blip rather than a structural issue. Investors remained confident due to strong core corporate travel volumes and a robust balance sheet, choosing to overlook the downward revision caused by Middle East travel disruptions.
The two key detractors to relative performance were Pro Medicus (PME; not owned) and our underweight position in Wesfarmers. PME outperformed in June, surging around 40%, primarily driven by a flurry of major US contract wins and renewals worth millions of dollars. The announcements strongly reinforced market confidence in the company's high customer retention and technology dominance, triggering an aggressive rebound after a previous sector-wide pullback.
What happened in the markets you invest in?
The Australian equity market rose in June, with strong performances from the previously under pressure healthcare sector (up 13.3%) and Consumer Staples and Consumer Discretionary stocks up 13.0% and 12.2% respectively. Unsurprisingly, Energy fell 8.9% on the news of Iran and the US entering a 60-day ceasefire negotiation and Materials fell 6.7%. Australia's economic data in June highlighted slowing growth, easing inflationary pressures, and persistent caution among both consumers and businesses. The Reserve Bank of Australia (RBA) kept the cash rate steady at 4.35% in June, though it maintained a hawkish stance following three rate hikes earlier in the year to combat global energy shocks.
What are we thinking about the future?
After a prolonged period of high and rising inflation, the RBA started to take action by raising interest rates earlier this year. They’ve since raised the cash rate two more times, with the latest in early May. With a hawkish hold in June there is a chance of one further hike in the next few months. Trimmed mean inflation rose to 3.6%, amongst the highest in the OECD. Economists expect inflation to stay high through 2026 before cooling to the RBA’s target band by late 2027.
There appears to have been a meaningful shift in risk sentiment over the last month as the market contemplates higher inflation, higher interest rates and tax changes from the Australian Federal budget. In particular we highlight the risk to housing which has seen a sharp fall in demand, with lower auction clearance and housing loan applications. Housing has been a key source of economic activity in Australia in recent years, whether via financing, construction, transactional activity or the substantial impact on consumer demand created by wealth effects. We are watching closely for signs of an economic slowdown and have de-risked the portfolio accordingly.