Summer Conservative Selection
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
We aim to achieve long-term returns (before fees, taxes and other expenses) greater than a composite benchmark relating to the target investment mix.*
Investors can expect:
- moderate levels of movement up and down in value
- longer-term returns that are lower than those of the Summer Balanced Selection (but with less risk).
Strategic investment mix
| Category | % |
|---|---|
| Cash and cash equivalents | 15.00% |
| New Zealand fixed interest | 31.00% |
| International fixed interest | 24.00% |
| Total income assets | 70% |
| Australasian equities | 11.00% |
| Listed property | 4.00% |
| International equities | 15.00% |
| Total growth assets | 30% |
| Total portfolio | 100% |
Tactical asset allocation
| Category | % |
|---|---|
| Cash and cash equivalents | 12.00% |
| New Zealand fixed interest | 31.50% |
| International fixed interest | 23.00% |
| Total income assets | 66.5% |
| Australasian equities | 12.50% |
| Listed property | 6.00% |
| International equities | 15.00% |
| Total growth assets | 33.5% |
| Total portfolio | 100% |
Minimum suggested investment timeframe
Fund at a glance
Unit price (as at 31 March 2026): $1.2577
Date the fund started: 8 April 2019
Fund returns
| PIR | 1 Month | 3 Month | 1 Year | 3 Years^ | Total since inception^ |
|---|---|---|---|---|---|
| 28% | -2.62% | -1.93% | 4.37% | 4.70% | 2.88% |
^ 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 | Hunter Global Fixed Interest Fund | 23.03% |
| 2 | BNZ Transactional Account | 2.94% |
| 3 | New Zealand Government 1.5% 15/05/2031 | 2.94% |
| 4 | New Zealand Government 14/04/2033 3.5% | 2.27% |
| 5 | New Zealand Government 15/05/2032 2.00% | 1.63% |
| 6 | New Zealand Government 15/05/2028 0.25% | 1.60% |
| 7 | NZ Government 4.25% 15/05/2034 Green Bond | 1.57% |
| 8 | New Zealand Government 4.5% 15/05/2035 | 1.56% |
| 9 | New Zealand Government 4.25% 15/05/2036 | 1.45% |
| 10 | New Zealand Government 4.50% 15/05/2030 | 1.33% |
| Top 10 investments total | 40.32% | |
Portfolio Holdings
SummerCON portfolio holdings data Sept2025
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Manager's Commentary
How did your portfolio perform?
The Summer Conservative Selection (the fund) delivered a return after fees and before tax of –3.06% for the month of March. For the 12 months to the end of March, the fund delivered a return after fees and before tax of 4.92%.
In local currency terms, unhedged global equities delivered returns of -7.18%, AU equities delivered -7.15%, NZ Equities -5.76% and listed property-4.68%. Cash delivered positive returns, whilst both domestic and global fixed interest markets delivered negative returns as the outlook for inflation pushed interest rates higher (causing capital losses on existing bond holdings).
For details on the Conservative Fund's single asset class funds, see the relevant commentary.
We actively manage the fund’s foreign currency exposures and hedge the international fixed interest segment of the fund. The New Zealand dollar fell 4.93% against the US dollar and 1.08% against the Australian dollar.
What happened in the markets you invest in?
Returns in March were dominated by the US / Israel actions against Iran, and its retaliation – particularly the effective ceasing of energy flows using the Persian Gulf. A chunk of that has already been captured in equity and bond market returns over the March month.
Equity and bond markets performed poorly – due to lower growth and higher inflation expectations, respectively. Against that, earnings expectations in Australia have remained very robust. NZ has fared less well, largely due to a weaker economic starting position and heavy reliance on Middle Eastern Energy. At least some of these negative impacts have been captured in equity and bond market returns over the March month.
What are we thinking about the future?
The first order effects of the conflict are higher fuel prices taking more of the weekly budget. That quickly flows into freight prices for absolutely everything and higher direct costs for a wide range of products from fertilisers to plastic pipes. A short-term spike in inflation is unavoidable, in Octagons view.
The second order affects are more dramatic. Higher essentials prices and higher interest rates to fight inflation means less money for everything else. In a prolonged conflict scenario, global and local economic growth could fall meaningfully, raising the risk of recession. Recession means lower employment, lower profits and lower equity prices. For income assets classes, Interest rates are up now hurting prices, but if a recession were to play out, they would have to come back down.
We remain hopeful that the US uses its amassed troops to leverage a ceasefire or a complete end to hostilities in the near term, but all outcomes are still on the table, with the most negative reliant on a long and drawn-out period of hostilities or escalation.
Market prices have already adjusted somewhat, a quick end to hostilities would see at least a partial rebound in short order and the US economy in particular was in very solid shape heading into this conflict. As long-term investors, we are balancing more attractive valuations than we had two months ago, against a highly uncertain outcome that could see a decent economic slowdown. High uncertainty means we should not be deviating greatly from our Strategic Asset Allocation.