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 moderate to high levels of movement up and down in value.
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.
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 July 2026): $1.9094
Date the fund started: 19 September 2016
Fund returns
| PIR | 1 Month | 3 Month | 1 Year | 3 Years^ | Total since inception^ |
|---|---|---|---|---|---|
| 28% | 1.18% | 6.25% | 6.80% | 3.73% | 6.79% |
^ 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 | 14.92% |
| 2 | Infratil Limited | 9.42% |
| 3 | Auckland International Airport Limited | 7.93% |
| 4 | Mainfreight Limited | 4.73% |
| 5 | Contact Energy Limited | 4.72% |
| 6 | Ebos Group Limited | 4.69% |
| 7 | Spark New Zealand Limited | 4.02% |
| 8 | Meridian Energy Limited | 3.98% |
| 9 | The a2 Milk Company Limited | 2.76% |
| 10 | Mercury NZ Limited | 2.72% |
| Top 10 investments total | 59.89% | |
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 1.23% for the month of July, comfortably outperforming its benchmark* return by 0.64%. For the 12 months to the end of July, the fund delivered a return after fees and before tax of 6.31% underperforming its benchmark* return by -1.25%.
The main positive contributors to performance in July were our overweight position in Sky City Entertainment (SKC) and our underweight positions in Chorus, A2 Milk (ATM) and Port of Tauranga (POT).
SKC continued to work through its operating and balance sheet issues, with conditional settlement of a regulatory fine for its Adelaide casino and confirmation of a property sale in Auckland. Chorus and POT provided updates in-line with expectations, but both are already seen as defensive, and a guidance miss would have been harshly treated. ATM continues to trade in a volatile range as the market tries to understand the longer-term impacts of its earlier infant formula product recall.
No individual stock detracted more 0.1% from performance, with Ryman being the worst performer as housing markets continued to struggle from both a price and volume perspective.
What happened in the markets you invest in?
The economic backdrop remained mixed with plenty of reasons for caution across the corporate sector. While business confidence improved during July, inflation came in higher than expected. Employment indicators remained weak, yet markets are currently pricing in two further Official Cash Rate (OCR) increases before year-end.
Despite the subdued economic environment, the top four performers in the market over July were companies that would be considered as economically sensitive. SKC and Fletcher Building benefited from progress on their self-help initiatives, whilst Mainfreight and Hallenstein Glassons continued to execute well in their core operations.
What are we thinking about the future?
Reporting season is now underway. Pre-announcements were broadly in line with previous years, while early results have generally been encouraging. This has exceeded our expectations and suggests companies have navigated a volatile June quarter reasonably well. We still expect management outlook statements to remain cautious, given the ongoing pressure on household budgets and consumer spending.
Although the NZ election is not until November, political parties are already positioning themselves with a range of headline-grabbing policy proposals, including aged-care reforms, potential changes to the structure of the electricity sector, and significant tax measures. While coalition governments typically result in more incremental policy change, heightened political uncertainty is generally viewed negatively by both companies and investors.
We maintain our current portfolio positioning. Quality and growth stocks continue to appear richly valued, while cyclical and value-oriented businesses offer more attractive valuations, provided they can demonstrate a credible path back to mid-cycle profit margins.
*The benchmark for the fund is the S&P/NZX50 Gross with Imputation Index.