Summer Global Equities
Summary of investment objective and strategy
To achieve long-term returns (before fees, taxes and other expenses) greater than MSCI ACWI Net Total Return Index, 50% hedged to the New Zealand dollar.
These investments typically have high levels of movement up and down in value.
Minimum suggested investment timeframe
At least five years
Strategic investment mix
| Category | % |
|---|---|
| Cash and cash equivalents | 10.00% |
| New Zealand fixed interest | 0.00% |
| International fixed interest | 0.00% |
| Total income assets | 10% |
| Australasian equities | 0.00% |
| Listed property | 0.00% |
| International equities | 90.00% |
| Total growth assets | 90% |
| Total portfolio | 100% |
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 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.
Fund at a glance
Unit price (as at 28 February 2026): $2.5357
Date the fund started: 18 October 2019
Fund returns
| PIR | Total since inception^ | 1 Month | 3 Month | 1 Year | 3 Years^ |
|---|---|---|---|---|---|
| 28% | 9.83% | 1.92% | 2.67% | 12.60% | 17.12% |
^ 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 | Vanguard ESG US Stock ETF | 6.80% |
| 2 | Vanguard ESG International Stock ETF | 3.60% |
| 3 | Microsoft Corporation | 3.27% |
| 4 | Alphabet Inc. Class A | 1.90% |
| 5 | ANZ transactional bank account | 1.66% |
| 6 | Mastercard Inc. | 1.50% |
| 7 | Uber Technologies Inc | 1.40% |
| 8 | Salesforce.com, Inc. | 1.39% |
| 9 | Verizon Communications Inc | 1.32% |
| 10 | Veolia Environnement SA | 1.31% |
| Top 10 investments total | 24.15% | |
Manager's Commentary
How did your portfolio perform?
The Summer Global Equities Fund (the fund) delivered a return after fees and before tax of 2.01% during February. For the 12 months to the end of February, the fund delivered a return after fees and before tax of 13.14%.
Solid relative performance in February was driven by the minimum volatility manager, which benefited from a rotation into value and lower-risk stocks and away from mega-cap technology names. Being underweight to the “Magnificent Seven” contributed positively to returns. The Global Factor portfolio detracted modestly, reflecting a broad-based derating across software-as-a-service business models, partially offset by strength in Healthcare and Energy. The concentrated growth manager detracted more materially as market performance broadened across index constituents.
In January this year the fund switched to a core, global factor portfolio to enhance our multi-manager approach. The global factor portfolio builds stock positions based on strong cash-flow generation and robust earnings fundamentals. Combined with market-reaction factors, these positions are optimised to create a diversified portfolio with a clear focus on risk control. More detail about the new Octagon Global Factors Portfolio can be found on the GEF page: Global Equities Fund - Octagon Asset Management.
We actively manage the Fund’s foreign currency exposures. During the month, the New Zealand dollar weakened -0.79% against the US dollar and was broadly unchanged against the euro and Japanese yen. Active hedging detracted modestly from overall portfolio performance.
What happened in the markets you invest in?
Global equities have recently pulled back amid heightened uncertainty surrounding the conflict involving the US, Israel and Iran. Earlier in February, gains had broadened well beyond the US, with Japan, UK, Europe, developed Asia and emerging markets all posting positive returns. US equities were the exception, declining modestly as AI continued to be a source of market volatility. The rotation away from the software sector boosted value stocks.
Japanese equities surged following the Prime Minister’s landslide election victory — the largest since the Second World War — signalling the potential for fiscal expansion, tax cuts and food tax relief. The Japanese Topix rose 10.5% over the month. Economic data also improved, with February business surveys indicating continued broadening in global growth and moderating inflation pressures across the UK, US and Japan.
More recently, as tensions escalated and shipping through the Strait of Hormuz came under threat, Brent crude oil prices rose materially — from around US$80 per barrel early in the escalation to above US$110 at peak levels in March. Bond markets weakened as inflation expectations increased, with US 10-year Treasury yields moving back above 4%.
What are we thinking about the future?
Markets have remained volatile for much of this year. Earlier concerns around the return on investment in artificial intelligence (AI) meant that, despite a strong US earnings season, investors punished many of the companies lifting capital expenditure well ahead of revenue growth.
More recently, the war in Iran has influenced short-term market returns, with Energy outperforming due to the spike in oil prices. Software stocks have since rebounded, appearing relatively more macro-defensive than normal cyclical businesses in the face of higher oil prices.
History suggests that the financial market impacts of military conflicts are contained, provided escalation remains limited. Remaining diversified across the three managers, alongside a larger-than-normal allocation to the minimum volatility manager, remains central to managing risk and return.