Summer New Zealand 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 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% |
| Total growth assets | 95% |
| Total portfolio | 100% |
Minimum suggested investment timeframe
Fund at a glance
Unit price (as at 31 May 2026): $1.8407
Date the fund started: 19 September 2016
Fund returns
| PIR | 1 Month | 3 Month | 1 Year | 3 Years^ | Total since inception^ |
|---|---|---|---|---|---|
| 28% | 2.44% | -3.94% | 7.49% | 3.29% | 6.52% |
^ 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 | 14.26% |
| 2 | Infratil Limited | 10.13% |
| 3 | Auckland International Airport Limited | 7.73% |
| 4 | Contact Energy Limited | 5.24% |
| 5 | Meridian Energy Limited | 4.33% |
| 6 | Ebos Group Limited | 4.30% |
| 7 | Mainfreight Limited | 4.14% |
| 8 | Spark New Zealand Limited | 3.98% |
| 9 | Mercury NZ Limited | 3.06% |
| 10 | Sky Network Television Limited | 2.80% |
| Top 10 investments total | 59.97% | |
Portfolio Holdings
Summer New Zealand Equities Portfolio Holdings
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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 2.42% during May. For the 12 months to the end of May, the fund delivered a return after fees and before tax of 8.49%.
May saw some very material price moves within the portfolio. On the positive side, Tourism Holdings received a revised takeover bid, Kathmandu delivered a positive trading update and Vista benefited from contract wins and a solid start to the year for US cinema attendance.
Against these ‘wins’ for the portfolio, performance was negatively impacted by our underweight position in Infratil (IFT), where a very material data centre contract win saw the price go up 26%. Tower (TWR) delivered an in-line result, but the market didn’t like the revenue slowdown and Sky City fell to new lows on general economic malaise.
What happened in the markets you invest in?
May, along with November, is one to the two ‘minor’ reporting seasons for NZ equities – minor by number of companies, but important as it includes large names like Fisher and Paykel Healthcare (FPH), Mainfreight and Ryman.
From our perspective the reporting season was modestly disappointing. We forecast weakness and uncertainty in company outlook statements, but on average they were slightly worse than what we had expected.
From a market reaction standpoint, FPH and TWR were a good illustration of how market sentiment impacts short term returns vs dispassionate interpretation of the results. FPH’s share price had been weak going into its earnings announcement on fears of tariffs, fuel and plastic costs, and a benign flu season. The result was in-line as was guidance, yet the share price rebounded nearly 11% over the next few days. TWR had been strong into the result, with domestic insurance being seen as relatively immune from the Iran war. The result was in-line and full year guidance confirmed, yet the share price fell 9% over the next few days.
What are we thinking about the future?
Information on the domestic economy is coming in fractionally weaker than most forecasters expected, driven by the uncertainty and cost of living impacts of the Iranian war. This is a short-term headwind for our positions exposed to the domestic economy.
Whilst we are always testing our investment thesis on new information, the new takeover bid for THL reminds us that valuation dominates in the long run, overwhelming short-term profit announcements and sentiment. Whilst we have used price falls in FPH and A2Milk to add defensive quality to the portfolio, we remain heavily overweight valuation metrics, and right now, the most attractive valuations are in the domestic cyclical sectors.