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 moderate to 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 30 June 2026): $1.8870
Date the fund started: 19 September 2016
Fund returns
| PIR | 1 Month | 3 Month | 1 Year | 3 Years^ | Total since inception^ |
|---|---|---|---|---|---|
| 28% | 2.52% | 5.41% | 7.49% | 3.79% | 6.73% |
^ 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 | 14.31% |
| 2 | Infratil Limited | 10.08% |
| 3 | Auckland International Airport Limited | 7.65% |
| 4 | Contact Energy Limited | 4.97% |
| 5 | Ebos Group Limited | 4.59% |
| 6 | Mainfreight Limited | 4.41% |
| 7 | Meridian Energy Limited | 4.16% |
| 8 | Spark New Zealand Limited | 3.89% |
| 9 | The a2 Milk Company Limited | 3.24% |
| 10 | Mercury NZ Limited | 2.92% |
| Top 10 investments total | 60.22% | |
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 1.19% during June. For the 12 months to the end of June, the fund delivered a return after fees and before tax of 6.95%.
The fund’s modest under-performance during June was driven by a dramatic bounce in A2 Milk. Concerns around additional fall-out from the US product recall abated over time, and no change to current year earnings guidance saw a strong share price bounce. The stock is still down 23% from its high in March. Performance was helped by SkyCity; it rallied 10% as it reached agreement with the South Australian regulator over historic compliance breeches, agreeing to pay an AU $21 million fine.
Stocks with defensive earnings generally outperformed those directly exposed to the economic cycle.
What happened in the markets you invest in?
There was a near 55% spread in stock returns over June. A2 Milk had a dramatic 40% bounce over the month, whilst Serko fell 15%. Whilst not strong, economic data largely came in slightly better than expected during the month. Coupled with the dramatic fall in oil prices as Iran and the US enter a 60-day ceasefire negotiation, market sentiment improved.
Given the global backdrop over the June quarter was very negative, there were relatively few companies downgrading earnings for the June period end. THL was a notable exception as ‘end of useful rental life’ vehicle sales continue to be depressed. The stock price was up in June however, as a new bidder for the business trumped the current offer price. The THL board is discussing due diligence terms, and we expect both parties to be given enough access to allow them to firm up their acquisition offers.
What are we thinking about the future?
Lower oil prices feed through to the underlying economy in many positive ways. From lower inflation pressures, reduced cost of living impacts to improved business and consumer confidence. Combined with relatively few recent profit warnings, we have upgraded our short-term outlook for the economy and domestically exposed companies.
We still expect net downgrades to market profit expectations for 2027 earnings. However, the economic recovery in train at the start of the year is likely to get back on track sooner than otherwise expected - provided the 60-day ceasefire negotiation holds and turns into a stable relationship.
July is a quiet month before the flood of earnings over August. Throw in a general election in November with polls indicating no clear winning coalition in the lead, we expect a muted and cautious market backdrop for the period immediately ahead. From a valuation standpoint, we continue to view recent market winners in the defensive earnings space as fully valued, whilst many domestic cyclicals have become even more attractively priced.