Summer Growth Selection
Summary of investment objective and strategy
We aim to achieve long-term returns (before fees, taxes and other expenses) greater than a composite benchmark relating to the target investment mix.*
Investors can expect:
- moderate to high levels of movement up and down in value
- longer-term returns that are higher than those of the Summer Balanced Selection (but with more risk).
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.
Strategic investment mix
| Category | % |
|---|---|
| Cash and cash equivalents | 4.00% |
| New Zealand fixed interest | 10.00% |
| International fixed interest | 6.00% |
| Total income assets | 20% |
| Australasian equities | 25.00% |
| Listed property | 5.00% |
| International equities | 50.00% |
| Total growth assets | 80% |
| Total portfolio | 100% |
Tactical asset allocation
| Category | % |
|---|---|
| Cash and cash equivalents | 3.00% |
| New Zealand fixed interest | 10.00% |
| International fixed interest | 2.75% |
| Total income assets | 15.75% |
| Australasian equities | 26.25% |
| Listed property | 8.00% |
| International equities | 50.00% |
| Total growth assets | 84.25% |
| Total portfolio | 100% |
Minimum suggested investment timeframe
Fund at a glance
Unit price (as at 31 August 2026): $1.6470
Date the fund started: 8 April 2019
Fund returns
| PIR | 1 Month | 3 Month | 1 Year | 3 Years^ | Total since inception^ |
|---|---|---|---|---|---|
| 28% | 1.11% | 4.11% | 9.35% | 9.47% | 6.55% |
^ 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 | Fisher & Paykel Healthcare Corporation Limited | 2.73% |
| 2 | Hunter Global Fixed Interest Fund | 2.69% |
| 3 | Nvidia Corp | 1.67% |
| 4 | Apple Inc | 1.60% |
| 5 | Goodman NZ Ltd & Goodman Property Services Ltd | 1.58% |
| 6 | Infratil Limited | 1.58% |
| 7 | Precinct Properties New Zealand Limited | 1.57% |
| 8 | Microsoft Corp | 1.48% |
| 9 | Alphabet Inc-Cl A | 1.41% |
| 10 | Auckland International Airport Limited | 1.36% |
| Top 10 investments total | 17.67% | |
Portfolio Holdings
Summer Growth Selection Portfolio Holdings
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Manager's Commentary
How did your portfolio perform?
The Summer Growth Selection (the Fund) delivered a return after fees and before tax of 1.44% for the month of August, fractionally underperforming its benchmark return of 1.51%. For the 12 months to the end of August, the Fund delivered a return after fees and before tax of 10.17% underperforming its benchmark return of 12.36%.
Investment market returns were generally positive over August, with trans-Tasman equity markets, fixed interest and cash all delivering positive results. Global Equities and Fixed Interest were also positive for the month. Listed property was an outlier as interest rate trends and low dividend growth saw that market deliver a modestly negative return. Other than in Global Equities, our portfolio managers outperformed their benchmarks over the month.
For details on the Growth Fund's single asset class funds, see the relevant commentary.
We actively manage the Fund’s foreign currency exposures and hedge the international fixed interest segment of the fund. The New Zealand dollar rose 0.64% against the US dollar and fell -1.35% against the Australian dollar.
What happened in the markets you invest in?
Longer-term interest rates rose to cycle highs in August, driven by persistent inflation, government deficits and AI-related investment. Central banks maintained an anti-inflation stance, but policy tightening remained measured. Longer-term inflation expectations have remained reasonable, giving rate setters time to assess new information before acting.
Earnings growth across local and global equity markets remained strong over the past two months, partly reflecting easier comparatives from the 2025 tariff shock. Revenue growth and margin expansion were broad-based, led by companies exposed to AI infrastructure spend. Earnings revisions were generally positive, and demand indicators remained resilient.
What are we thinking about the future?
Strong global earnings growth has exceeded share price gains, reducing headline market valuations from approximately 23x to 20x forward earnings. Higher interest rates also tend to temper equity valuations.
We remain at strategic asset allocation weight in global equities, balancing strong earnings momentum against historically elevated profit margins. Demand remains resilient, but competitive pressure should limit margin expansion over time. AI may provide a productivity tailwind, but we do not assume current competitive advantages are enduring for all.
The listed property overweight continues to detract from relative performance. Recent reporting supports our view that weakness is primarily rate-driven, while sector fundamentals and valuation support remain intact. We therefore retain the overweight.
Geopolitical risks remain elevated but have not triggered a material rotation into safe-haven bonds. Gold has recovered from recent weakness, while oil prices remain below levels likely to materially affect global growth or inflation.
* The Growth Selection's composite benchmark is made up of the single asset class benchmarks weighted by the target asset allocation for the asset class. The single asset class benchmarks are the same as the benchmarks for the single asset class funds, and the benchmark for international fixed interest is the Bloomberg Global Aggregate Total Return Index, 100% hedged to the New Zealand Dollar.