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% |
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 31 December 2025): $2.4736
Fund returns
| PIR | Total since inception (annualised) | 1 Month | 3 Month | 1 Year | 3 Years^ |
|---|---|---|---|---|---|
| 10.5% | 10.22% | 0.59% | 4.12% | 14.78% | 19.08% |
| 17.5% | 10.03% | 0.57% | 4.09% | 14.69% | 19.00% |
| 28% | 9.75% | 0.55% | 4.05% | 14.57% | 18.87% |
^ 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 | 19.28% |
| 2 | Vanguard ESG International Stock ETF | 9.73% |
| 3 | Microsoft Corp | 1.83% |
| 4 | ANZ transactional bank account | 1.71% |
| 5 | Salesforce.com, Inc. | 1.53% |
| 6 | Mastercard Inc. | 1.44% |
| 7 | Verizon Communications Inc | 1.39% |
| 8 | Uber Technologies Inc | 1.37% |
| 9 | Amazon.com Inc. | 1.34% |
| 10 | Nestle S.A. | 1.23% |
| Top 10 investments total | 40.85% | |
Manager's Commentary
How did your portfolio perform?
The Summer Global Equities Fund (the fund) delivered a return after fees and before tax of 0.61% during December. For the 12 months to the end of December, the fund delivered a return after fees and before tax of 14.90%.
Our two active managers marginally underperformed the index over the month. The biggest positive contributors to the fund’s relative performance were our overweight position in Salesforce (SFDC) and the underweight position in Broadcom. SFDC rallied over the month, yet the stock remains well below its earlier 2025 highs. AI giant Nvidia was the biggest relative detractor due to the fund’s underweight position, with the stock rising 5.2%.
Market returns were strongest in the Financials and Materials sectors and weakest in Utilities. The December year-end saw a rotation of capital as investors repositioned into financial stocks that had lagged earlier in the year during strong technology-led rallies. This rotation was funded by selling utility stocks, after their recent strong performance, which in turn had been driven by expectations that AI-driven data-centre growth would boost electricity demand.
We actively manage the fund’s foreign currency exposures. During the month, the New Zealand dollar was broadly flat against the US dollar and the Euro and appreciated against the Japanese Yen.
What happened in the markets you invest in?
Global equities were mixed in December. US stocks oscillated to a flat close, while Japan, the UK, and Europe posted gains. China and Hong Kong lagged.
European equities benefitted as a lower-valuation alternative to the US, supported by expectations of monetary policy easing by the European Central Bank as Eurozone inflation moderated towards target. Fund manager flows during December shifted toward Europe and the UK, and away from the more highly valued US market.
Japan equities delivered solid gains relative to Asian regional peers. Ongoing corporate governance improvements and a weaker Yen supported exporters’ earnings outlook. Chinese equities were weaker in December, but for the year they performed well, supported by advances in domestic AI technology.
What are we thinking about the future?
US economic activity softened slightly over the month. Global manufacturing orders and freight activity deteriorated slightly, while weaker services PMI readings reinforce a more cautious growth outlook. Inflation remained largely unchanged. Although the decline in the unemployment rate is a positive sign for labour market resilience, weakening consumer sentiment and rising long-term bond yields and slower credit growth weighed on the US market.
Our bottom-up managers continue to identify more attractive opportunities outside the US, particularly in Europe, Japan and developed Asia, where valuations are more reasonable. US reporting season kicks off in mid-January, and we expect high single-digit earnings growth.
We actively manage the risk exposure of the fund. Over January, we increased allocations to active stock positions while reducing exposure to the broader global equity market. Stock selection is focused on companies with higher free cash flow yields, more disciplined capital allocation and quality earnings greater than the broader market. Active risk remains within the target range.