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 31 March 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 30 April 2026): $1.7972
Date the fund started: 19 September 2016
Fund returns
| PIR | 1 Month | 3 Month | 1 Year | 3 Years^ | Total since inception^ |
|---|---|---|---|---|---|
| 28% | 0.37% | -5.18% | 9.47% | 1.89% | 6.30% |
^ 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 | 14.22% |
| 2 | Auckland International Airport Limited | 8.03% |
| 3 | Infratil Limited | 7.73% |
| 4 | Contact Energy Limited | 5.24% |
| 5 | Ebos Group Limited | 4.76% |
| 6 | Meridian Energy Limited | 4.25% |
| 7 | Spark New Zealand Limited | 4.12% |
| 8 | Mainfreight Limited | 3.91% |
| 9 | The a2 Milk Company Limited | 3.35% |
| 10 | Mercury NZ Limited | 2.94% |
| Top 10 investments total | 58.55% | |
Portfolio Holdings
SummerNZE portfolio holdings data Sept2025
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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 0.36% during April. For the 12 months to the end of April, the fund delivered a return after fees and before tax of 10.49%.
Key positive contributors to performance in April came from our significant underweight in A2 Milk, and overweight in Genesis Energy. A2 Milk noted disruptions in supplying its key China market, leading to a 15% decline in the share price. Genesis upgraded earnings and announced a further investment in grid scale batteries.
Key detractors from performance in April were again concentrated in domestic cyclical names, Sky City Entertainment (SKC) and Kathmandu. Less discretionary spending due to higher fuel prices and higher interest rates are already impacting on these companies’ profits.
What happened in the markets you invest in?
Consumer and business confidence have fallen materially in the wake the Middle East hostilities. Hopes of a quick resolution are fading, with the risk increasing that we see escalation to try and force both parties to the negotiating table.
The market will continue to be dominated by global macro news flow in the short term. The economic recovery was only just beginning with the two key cushions to international headwinds – interest rate cuts and government spending – likely to be in short supply. Inflation was already at the top end of the RBNZ’s band, and despite it being an election year, the government is already carrying more debt that it would like.
The market has reacted in classical fashion to the deteriorating domestic outlook. Eight of the top ten worst performing stocks since the end of January are exposed to the domestic consumer and all those eight are down over 20%.
The outperformers have either been defensive stocks, like Chorus, Infratil and Mercury, or those exposed to strong commodity prices or a resilient US market, like Scales and Skellerup.
What are we thinking about the future?
As active managers we are always looking for opportunities where the market has mispriced risk. The current backdrop of heightened macro-economic risk often causes investors to extrapolate forward recent performance far into the future. We also see herding into sectors with defensive earnings, temporarily ignoring valuation in the pursuit of certainty.
All our stock positions are backed by valuations that are driven by medium term expectations of achievable earnings and returns. We then control for risk. Our position in Kathmandu is a good example of these risk controls. On reasonable medium-term earnings, the stock is trading at half of fair value – i.e. 100% share price upside. Our position is small, less than 0.5% of the portfolio, as we control for the risks in that valuation. Current earnings are negative, margins are under pressure, there is new management and a new board chair, and the balance sheet is still not pristine. As our confidence in our assumptions improve, the position size will get bigger. If we are proven wrong, we can exit at a low, but disappointing, cost to fund performance.