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 31 May 2026): $2.5692
Date the fund started: 19 September 2016
Fund returns
| PIR | 1 Month | 3 Month | 1 Year | 3 Years^ | Total since inception^ |
|---|---|---|---|---|---|
| 28% | 1.18% | 1.38% | 15.69% | 15.02% | 9.72% |
^ 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 | 3.72% |
| 2 | Alphabet Inc-Cl A | 3.04% |
| 3 | Vanguard ESG US Stock ETF | 3.00% |
| 4 | Apple Inc | 2.39% |
| 5 | Nvidia Corp | 2.00% |
| 6 | Mastercard Inc. | 1.61% |
| 7 | Vanguard ESG International Stock ETF | 1.47% |
| 8 | Amazon.Com Inc | 1.41% |
| 9 | Uber Technologies Inc | 1.25% |
| 10 | Taiwan Semiconductor Manufacturing Co. Ltd (ADR) | 1.20% |
| Top 10 investments total | 21.09% | |
Portfolio Holdings
Summer Global Equities Portfolio Holdings
13 KB
Manager's Commentary
How did your portfolio perform?
The Summer Global Equities Fund (the fund) delivered a return after fees and before tax of 1.49% during May. For the 12 months to the end of May, the fund delivered a return after fees and before tax of 16.13%.
Global markets continued their rally into May on the back of a strong US earnings season and easing energy prices. The rally was driven by rotation back into AI-linked semiconductor and hardware stocks. Emerging markets also led gains as Asian memory chip manufacturers reported earnings beats. Growth factors returned 7.0% against just 2.3% for value stocks, reflecting continued risk-on appetite for AI capex-linked stocks.
All three managers underperformed due to defensive positioning and lower exposure to growth and momentum stocks. The key detractor was the absence of Micron, AMD, and Palo Alto Networks — which rose 84.6%, 43.2%, and 54.5% respectively during the month — materially detracting from relative performance.
We actively manage the Fund’s foreign currency exposures. During the month, the New Zealand dollar strengthened +0.9% against the US dollar, 1.70% against the Euro and 2.70% against Japanese yen. Active hedging added value to the overall portfolio performance for the month.
What happened in the markets you invest in?
Global equities recorded another positive month, with the US, Europe and the UK all posting gains. The developed markets index closed the month up 4.6%. Emerging markets also outperformed, led by extraordinary returns from Korea and Taiwan.
Oil prices fell sharply to $95 per barrel as investors continued to price in a de-escalation of the US/Israel–Iran conflict. Towards the end of May, a credible agreement was beginning to take shape, with a peace deal largely negotiated and expected to be announced shortly. Macro data pointed to continued resilience in the global economy, with the energy shock appearing broadly contained. The Fed held rates unchanged at its April FOMC meeting, though bond markets have priced in higher rates for longer as inflation ticked higher.
Strong equity markets have been supported by positive earnings surprises and upward revisions to corporate earnings in the US, Asia and Europe. The S&P 500 earnings rose 21% on 12% revenue growth, roughly double the pace of the economy. AI and technology companies remain the engines of compounding growth that have fuelled most of this year’s return.
What are we thinking about the future?
The widely held S&P500 index is approaching euphoria-level highs, last seen in the post-Covid bounce back. This may signal the early stages of a stock market bubble - characterised by an unsustainable rise in share prices relative to earnings. However, the market’s forward P/E (price to earnings) has declined to 20.4x from peak level of ~23x last year, driven by delivered profits and stronger earnings growth rather than multiple expansion. AI remains the key engine behind reducing costs ratios and improving profit margins.
That said, the real vulnerability lies with AI demand and growth assumptions. If these prove more aggressive than earnings can justify, today’s valuations could unwind quickly. We remain defensively positioned and diversified across our three managers.
Last month we began a tactical rebalance - reducing the WMP from 25% to 20% and Te Ahumiarangi from 45% to 40%, with the difference added to the Global Factor Portfolio. We’re targeting final allocations of 40% to the Global Factor Portfolio, 40% to Te Ahumiarangi and 20% to the WMP, with the final tranche completing in June.