Summer Global 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 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.
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% |
Minimum suggested investment timeframe
Fund at a glance
Unit price (as at 30 June 2026): $2.5986
Date the fund started: 19 September 2016
Fund returns
| PIR | 1 Month | 3 Month | 1 Year | 3 Years^ | Total since inception^ |
|---|---|---|---|---|---|
| 28% | 1.53% | 6.77% | 16.06% | 14.55% | 9.80% |
^ 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 | Microsoft Corp | 3.47% |
| 2 | Alphabet Inc-Cl A | 3.23% |
| 3 | Apple Inc | 2.52% |
| 4 | Nvidia Corp | 2.29% |
| 5 | Mastercard Inc. | 1.81% |
| 6 | Taiwan Semiconductor Manufacturing Co. Ltd (ADR) | 1.81% |
| 7 | BNP Paribas S.A. USD Cash Deposit | 1.78% |
| 8 | Uber Technologies Inc | 1.32% |
| 9 | Amazon.Com Inc | 1.30% |
| 10 | Broadcom Inc | 1.19% |
| Top 10 investments total | 20.72% | |
Portfolio Holdings
Summer Global Equities Portfolio Holdings
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Manager's Commentary
How did your portfolio perform?
The Summer Global Equities Fund (the fund) delivered a return after fees and before tax of 1.17% during June. For the 12 months to the end of June, the fund delivered a return after fees and before tax of 15.87%.
Global equity momentum reversed in June as the Software as a Service (SaaS) sector sold off further under the weight of AI disruption concerns. However, the June quarter still delivered one of the stronger quarterly returns in many years for Global Equities. Companies exposed to the AI supply chain - semiconductor and hardware equipment stocks - continued to lead gains. The Magnificent Seven lagged the broader market index, with stocks possessing defensives earnings outperforming.
These rotations favoured the Global Factor portfolio which modestly beat the benchmark index, led by its exposure to Biotech & Life Sciences and Consumer Services. Our low volatility and thematic growth portfolios both lagged, with softer returns driven by underperformance of value factor exposures, driving overall fund underperformance.
We actively manage the Fund’s foreign currency exposures. During the month, the New Zealand dollar fell against the US dollar and the Euro while flat against the Japanese yen. Active hedging detracted value to the overall portfolio performance for the month.
What happened in the markets you invest in?
Investors gained confidence in June, with risk sentiment improving on the back of a strong corporate earnings season and the ceasefire and 60-day peace deal in the Middle East war. Both developed and emerging markets rallied, with growth stocks outperforming value as the AI investment cycle continued. Commodity prices moved back towards pre-war levels, but in late June rose again after renewed Iranian attacks on shipping in the Strait of Hormuz and stronger rhetoric from the US President.
Global bond markets were mixed as investors assessed the impact of higher energy prices on inflation and growth. The front end of the yield curve rallied, while 10-year bond yields were little changed. US inflation data (from the CPI) rose 4.2% year-on-year, driven by higher gasoline prices. Labour market data remained resilient, and the Federal Reserve kept interest rates unchanged while maintaining a hawkish stance. Renewed tensions in the Middle East have brought inflation and growth risks back into focus late in the month.
What are we thinking about the future?
We increased the Fund's allocation to the Global Factor Portfolio to 40% in June, reducing exposure to the low volatility and the thematic growth portfolios to 40% and 20%, respectively. The Fund remains defensively positioned and well diversified across the three managers, with the low volatility strategy providing downside protection in a historically expensive equity market. The thematic growth portfolio maintains its recent defensive stance with a higher allocation to healthcare stocks.
The core Global Factor Portfolio became modestly more growth-oriented following our recent rebalance. We increased exposure to Taiwan Semiconductor, BE Semiconductor Industries and Micron Technology, bringing the portfolio's semiconductor and technology hardware exposure in-line with the benchmark. These additions were funded by reduced allocations to the materials and industrials sectors.
Improving earnings and the tech sector rally have strengthened the rankings of quality technology stocks. While valuations are not cheap, these companies remain attractive, supported by strong returns on equity, price momentum, free cash flow margins and positive earnings revisions.