Summer Growth Selection
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
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 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).
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 30 June 2026): $1.5995
Date the fund started: 19 September 2016
Fund returns
| PIR | 1 Month | 3 Month | 1 Year | 3 Years^ | Total since inception^ |
|---|---|---|---|---|---|
| 28% | 1.55% | 5.29% | 10.51% | 8.73% | 6.35% |
^ 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 | Hunter Global Fixed Interest Fund | 2.76% |
| 2 | Fisher & Paykel Healthcare Corporation Limited | 2.36% |
| 3 | Infratil Limited | 1.76% |
| 4 | Microsoft Corp | 1.76% |
| 5 | Precinct Properties New Zealand Limited | 1.68% |
| 6 | Alphabet Inc-Cl A | 1.64% |
| 7 | Goodman NZ Ltd & Goodman Property Services Ltd | 1.61% |
| 8 | Kiwi Property Group Limited | 1.32% |
| 9 | Apple Inc | 1.28% |
| 10 | Auckland International Airport Limited | 1.26% |
| Top 10 investments total | 17.43% | |
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 1.43% for the month of June. For the 12 months to the end of June, the fund delivered a return after fees and before tax of 10.67%.
NZ equities topped the returns table over June. However, once the significant decline in the NZ dollar is captured, Global equities delivered a strong positive return for both the month and quarter. All the asset classes making up the fund delivered positive returns (in NZD terms) 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 fell 5.02% against the US dollar and fell 1.34% against the Australian dollar.
What happened in the markets you invest in?
Progress in the Middle East war saw significant commodity price falls over the month, including oil and gold. If sustained, this will lower inflationary pressures around the world. Bond markets have generally been slow to reflect lower inflation risks, partly due to tight labour markets in some geographies.
NZ bonds performed strongly on oil price relief, but also expectations of lower domestic inflation due to weak domestic growth, spare capacity in the NZ economy and persistent unemployment.
Equity markets were mixed. The extraordinary strength in stocks exposed to the artificial intelligence trade unwound somewhat, particularly in Taiwan and South Korea. Australia is suffering from rising interest rates and a budget which indicates weaker returns for residential real estate investors. Meanwhile NZ equities performed well but still lagged global equity returns when exchanged back to NZ dollars as the economy absorbs the prior oil price spike into cost-of-living pressures.
What are we thinking about the future?
Oil price relief is welcome for returns generally, but each asset class also responds to its own dynamics. Real (adjusted for inflation) interest rates are high by recent standards, which should allow for respectable capital gains if inflation is truly under control. Of course, that resets the interest rate earned into the future lower. We currently prefer listed property to fixed interest. Listed property will benefit from lower rates but also can hold and grow their dividend yields.
In the equities space, lower oil prices reinforce our confidence in our overweight stance towards NZ where an economic recovery is now more likely. Australia looks more challenging, as higher interest rates and changes to the tax treatment of property investing is likely to see that economy slow down.
We made no changes to our asset allocation over June.