Summer New Zealand Equities
Summary of investment objective and strategy
To achieve long-term returns (before fees, taxes and other expenses) greater than the S&P/NZX50 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 | 85.00% |
| Listed property | 10.00% |
| International equities | 0.00% |
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 December 2025): $1.9089
Fund returns
| PIR | Total since inception (annualised) | 1 Month | 3 Month | 1 Year | 3 Years^ |
|---|---|---|---|---|---|
| 10.5% | 7.82% | 0.76% | 3.81% | 5.51% | 5.93% |
| 17.5% | 7.58% | 0.75% | 3.80% | 5.27% | 5.68% |
| 28% | 7.23% | 0.73% | 3.78% | 4.90% | 5.30% |
^ 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 | 13.70% |
| 2 | Auckland International Airport Limited | 7.80% |
| 3 | Infratil Limited | 6.85% |
| 4 | Spark New Zealand Limited | 5.01% |
| 5 | Ebos Group Limited | 4.97% |
| 6 | Contact Energy Limited | 4.64% |
| 7 | Meridian Energy Limited | 4.27% |
| 8 | Mainfreight Limited | 4.20% |
| 9 | Ryman Healthcare Limited | 3.35% |
| 10 | The a2 Milk Company Limited | 3.02% |
| Top 10 investments total | 57.81% | |
Manager's Commentary
How did your portfolio perform?
The Summer New Zealand Equities Fund (the fund) delivered a return after fees and before tax of 0.77% during December. For the 12 months to the end of December, the fund delivered a return after fees and before tax of 5.87%
Positive performance was driven by the fund’s overweight in Sky City (SKC) and underweight positions in A2 Milk (A2M) and Gentrack (GTK). Our overweight in Sky Tv (SKT) and underweight in Auckland International Airport (AIA) dragged on relative performance.
SKC continues to recover from its August downgrade and equity raise, whilst A2M gave up some of its recent performance on slightly softer export data. GTK is proving very volatile at present, as it looks too assure investors of its growth rate in the face of customer wins by its key competitor.
SKT fell on the proposed merger between Netflix and Warner Brothers as access to content may become harder for the company. AIA rallied despite the High Court rejecting their application to review the pricing mechanism used by the regulator.
What happened in the markets you invest in?
December is a typically quiet month for company announcements and 2025 was no exception. Serko and Oceania Healthcare lead market performance, whilst GTK, Investore Property and SKT were the main laggards.
It is perhaps easier to understand the short term moves in Gentrack and SKT, than it is the upward moves in Oceania and Serko, where news flow has been particularly light. Announcements by key GTK competitor, Kraken, relating to valuation and client wins highlighted the competitiveness of the industry, which saw the GTK share price fell steeply. As noted above, for SKT, the proposed merger of Warner Brothers with either Netflix or Paramount creates uncertainty.
What are we thinking about the future?
Nothing in December changed our view that evidence is building in favour of a recovery in the NZ economy after a long recession.
Despite the expected sale of Warner Brothers to either Netflix or Paramount, we believe SKT will be able to obtain enough content to maintain its entertainment offer on both Sky and Neon. By far the majority of value in SKT rests with its rights to key local sports content.
We have increased our underweight positions in some of the most expensive, yet high quality, NZ businesses. Market prices seem to assume very positive earnings growth outcome for Chorus and A2 Milk, raising the bar for further outperformance from here. We see better valuations and earnings growth elsewhere.
Whilst we expect the economic backdrop to be supportive of cyclical businesses, we remain diversified with overweight positions in select stocks within the defensive sectors of property (Stride) and utilities (Genesis). We are also building a position in healthcare conglomerate Ebos.