Summer Listed Property
Date the fund started: 18 October 2019
Summary of investment objective and strategy
To achieve long-term returns (before fees, taxes and other expenses) greater than the S&P/NZX All Real Estate Gross with Imputation Index.
These investments typically have high levels of movement up and down in value.
Strategic investment mix
| Category | % |
|---|---|
| Cash and cash equivalents | 5.00% |
| New Zealand fixed interest | 0.00% |
| International fixed interest | 0.00% |
| Total income assets | 5% |
| Australasian equities | 20.00% |
| Listed property | 70.00% |
| International equities | 5.00% |
| Total growth assets | 95% |
| Total portfolio | 100% |
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 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.
Minimum suggested investment timeframe
At least five years
Fund at a glance
Unit price (as at 31 January 2026): $1.3549
Fund returns
| PIR | Total since inception^ | 1 Month | 3 Month | 1 Year | 3 Years^ |
|---|---|---|---|---|---|
| 28% | 3.42% | -3.63% | -6.75% | 5.94% | 2.33% |
^ 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 | Precinct Properties New Zealand Limited | 18.70% |
| 2 | Goodman Property Trust | 17.25% |
| 3 | Kiwi Property Group Limited | 14.64% |
| 4 | Property For Industry Limited | 8.57% |
| 5 | Vital Healthcare Property Trust | 8.56% |
| 6 | Argosy Property Limited | 7.94% |
| 7 | Stride Property Group | 7.21% |
| 8 | Investore Property Limited | 2.20% |
| 9 | ANZ transactional bank account | 1.99% |
| 10 | New Zealand Rural Land Company | 1.87% |
| Top 10 investments total | 88.93% | |
Manager's Commentary
How did your portfolio perform?
The Listed Property Fund (the fund) delivered a return after fees and before tax of –3.64% for January. For the 12 months to the end of January, the fund delivered a return after fees and before tax of 6.42%.
The were no material contributors or detractors to performance during January in what is a traditionally quiet month for news-flow. Argosy (ARG) underperformed a weak NZ property sector adding modest outperformance due to our underweight position. Our out of index position in Australian-listed Goodman Group (GMG) being the next largest contributor. The market continued to digest the previous months announcement that GMG has signed an AU$14bn European data centre partnership. The data centre opportunity is potentially very large but is long dated.
Vital Healthcare (VHP) fell only very modestly compared to a more material fall in the benchmark, resulting in its position as the largest detractor to performance due to our underweight position. VHP announced preliminary unaudited portfolio valuations, expecting to report an unrealised net property gain of ~NZ$36m for the six months ended 31 December 2025 reinforcing that cap rates have likely stabilised for the listed property sector for now. Our out of index positions in aged care names Oceania Healthcare and Summerset detracted from performance as the sector sold off after a very strong fourth quarter. The Reserve Bank of New Zealand (RBNZ) pivot from dovish to hawkish in late November has dampened expectations of a solid recovery in house prices with that sentiment filtering through to the sector.
We actively manage the fund’s foreign currency exposure from Australian equities. The NZ dollar rose 0.13% against the Australian dollar during the month.
What happened in the markets you invest in?
January is always a light month for company specific news. Following the hawkish RBNZ 0.25% rate cut (to 2.25%) in November the NZ 10yr Govt. bond increased to ~4.60% over the last three months, up materially from the sub-4% lows seen in October. This, along with a number of capital raises has seen the listed property sector sell off -7.7% from recent highs (including 3.6% in January).
What are we thinking about the future?
The core REIT sector is now trading on a -17% discount to net tangible assets (NTA), and a gross yield of 7.8% or +320bp spread over long dated bond rates. We expect February reporting season to highlight solid operational performance with stable vacancy, continued rent growth, and lower debt costs. As such, we believe the sector risk/reward still looks favourable vs other fixed income alternatives.
The aged care sector currently trades at material valuation discounts to own history and the core REITs sector. Aged care is fundamentally a higher growth business model through the use of resident financing, historic NTA growth per share ranges from 10-20% per annum over the last decade. We think an outlook prioritising cash flow, lower gearing and improved capital allocation should drive an upward re-rating in valuations.