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 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
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 31 March 2026): $2.4279
Date the fund started: 19 September 2016
Fund returns
| PIR | 1 Month | 3 Month | 1 Year | 3 Years^ | Total since inception^ |
|---|---|---|---|---|---|
| 28% | -3.60% | -1.57% | 12.15% | 14.84% | 9.31% |
^ 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 | 5.99% |
| 2 | Microsoft Corporation | 3.38% |
| 3 | Vanguard ESG International Stock ETF | 3.06% |
| 4 | Alphabet Inc. Class A | 2.78% |
| 5 | Apple Inc. | 1.90% |
| 6 | Amazon.com Inc. | 1.81% |
| 7 | Uber Technologies Inc | 1.62% |
| 8 | Mastercard Inc. | 1.56% |
| 9 | Nestle S.A. | 1.45% |
| 10 | Salesforce.com, Inc. | 1.41% |
| Top 10 investments total | 24.96% | |
Portfolio Holdings
SummerGE portfolio holdings data Sept2025
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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 –4.21% during March. For the 12 months to the end of March, the fund delivered a return after fees and before tax of 11.97%.
Solid outperformance from our managers stock picking was largely offset by losses from having a greater than normal level of NZD currency hedging against the US dollar.
Our global factor portfolio led the gains, our minimum volatility manager slightly outperformed, whilst our concentrated thematic growth manager lagged.
Due to the war in the Middle East, shares in the energy sector (i.e. oil & gas), and producers of other commodities led performance across the broader market. Technology hardware, semiconductors and SaaS, which were sold off in February, partially rebounded, supported by strong balance sheets and lower sensitivity to rising interest rates.
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 -4.93% against the US dollar, fell 1.88% against Japanese yen and 2.03% against the Euro. Active hedging detracted from overall portfolio performance.
What happened in the markets you invest in?
The broad-based sell-off in global equity markets was driven by Iran’s retaliatory actions against the US and Israel. Disruptions to energy flows and shipping through the Strait of Hormuz drove a significant oil supply shock. The developed country equity markets returned -6.3% and emerging markets posted -13% in USD terms.
The US held up better than most currencies, given its relative insulation from the spike in energy prices as net energy exporter. In contrast, Europe and developed Asia – as predominantly energy importers - led the losses over the month.
What are we thinking about the future?
A ceasefire has been reached, with negotiations now underway.
A slight positive delta in traffic through the Strait of Hormuz means the bias in equities is to the upside. However, supply chains and price effects are likely to remain elevated due to stockpiling demand, making it unlikely that oil and gas prices will quickly revert to pre-conflict levels. This is likely to spill over into many components of the CPI basket of goods and services. A short-term spike in inflation is unavoidable, in Octagon’s view. Higher prices and higher interest rates to fight inflation means less money in the economy for everything else. Over time, this could take a toll on global economic growth and increase the risk of recession.
Our global market reaction factors are not yet positioned against consumer cyclicals. For the US market, using both valuation and fundamentals, home builders, travel and restaurants are attractive. Wage income growth remains supportive, tax refunds are above last year, and US unemployment is generally stable.
Stock selection within the global factor portfolio remains disciplined and systematic, focusing on companies with strong cash flow generation, healthy margins, and consistent growth, supported by price trends. Alongside this, the inclusion of minimum volatility and growth managers provides diversification across styles and sectors amid an uncertain investment backdrop.