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 31 May 2026): $2.2176
Date the fund started: 19 September 2016
Fund returns
| PIR | 1 Month | 3 Month | 1 Year | 3 Years^ | Total since inception^ |
|---|---|---|---|---|---|
| 28% | 0.59% | -4.10% | 10.98% | 10.06% | 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 | 11.02% |
| 2 | Commonwealth Bank of Australia Limited | 6.70% |
| 3 | Westpac Banking Corporation | 4.08% |
| 4 | Australia and New Zealand Banking Group Limited | 3.83% |
| 5 | BNZ Transactional Account NZD | 3.14% |
| 6 | National Australia Bank Limited | 3.01% |
| 7 | Rio Tinto Limited | 2.91% |
| 8 | Macquarie Group Limited | 2.82% |
| 9 | Goodman Group | 2.45% |
| 10 | CSL Limited | 2.31% |
| Top 10 investments total | 42.27% | |
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 0.67% during May. For the 12 months to the end of May, the fund delivered a return after fees and before tax of 10.21%.
Key positive contributors were our underweight positions in Woodside Energy (WDS) and Commonwealth Bank (CBA). CBA fell in May after the Albanese government’s higher taxing, higher spending budget. Changes to capital gains tax and negative gearing targeted housing, making property investment significantly less attractive and reducing expected profit growth for CBA as the largest housing lender. WDS declined in May as conflict de-escalation and news of a potential Iran peace deal drove a ~20% correction in oil, lowering earnings expectations for the company.
The two key detractors to relative performance were our overweight position in Integral Diagnostics (IDX) and underweight position in Wesfarmers. Wesfarmers rebounded in May after falling more than 20% from the start of the Iran war. As a higher quality retail operator, investors continue to back management to trade through a tougher environment. IDX continued its downward slide in May with little stock specific news. The broader healthcare sector has derated significantly over 18 months, with IDX following it lower after delivering a sequence of softer results. Positively, Permira sold medical imaging group I-MED to a private equity buyer in early June, providing a valuation benchmark of 13x EBITDA, a significant premium to where IDX currently trades.
What happened in the markets that you invest in?
The Australian equity market rose 1.15% in May, with leadership shifting to Materials and Consumer Discretionary stocks up 10.51% and 4.74% respectively. Economic data remained firm through May, with headline inflation at 4.2% (YoY) and core inflation rising modestly. Unemployment ticked up to 4.5% in April with job creation coming in negative. The RBA again lifted the cash rate, to 4.35%.
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. Expectations are for interest rates to yet rise a little further.
The Iran war is likely to further exacerbate inflation pressures despite the higher interest rates, while draining disposable income from households. This was proving a manageable headwind to corporate earnings during the recently attended Macquarie Australasia Investment conference, with many companies remaining quite upbeat on the outlook.
The Australian Federal budget was also delivered in May. This was a high spending and higher taxing affair with multiple tax changes made including capitals gains, negative gearing and trust tax rates. There appears to have been a meaningful shift in risk sentiment over the last month as the market contemplates these factors.
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.