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 31 March 2026): $1.7909
Date the fund started: 19 September 2016
Fund returns
| PIR | 1 Month | 3 Month | 1 Year | 3 Years^ | Total since inception^ |
|---|---|---|---|---|---|
| 28% | -6.57% | -6.24% | 5.46% | 2.08% | 6.32% |
^ 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 | 14.52% |
| 2 | Auckland International Airport Limited | 7.63% |
| 3 | Infratil Limited | 6.95% |
| 4 | Contact Energy Limited | 5.53% |
| 5 | Ebos Group Limited | 4.91% |
| 6 | Spark New Zealand Limited | 4.29% |
| 7 | Meridian Energy Limited | 4.27% |
| 8 | Mainfreight Limited | 3.95% |
| 9 | The a2 Milk Company Limited | 3.78% |
| 10 | Mercury NZ Limited | 2.71% |
| Top 10 investments total | 58.54% | |
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 –6.28% during March. For the 12 months to the end of March, the fund delivered a return after fees and before tax of 6.44%
Key positive contributors to performance in March came from overweight's in Tower and underweights in Auckland Airport and Freightways. Tower saw a new broker analyst initiate coverage with a target price >30% above the market price. Auckland Airport and Freightways have significant negative exposure to oil prices, which they will eventually look to pass on to end customers.
Key detractors from performance in March were concentrated in domestic cyclical and tourism stocks, Sky City Entertainment and Tourism Holdings. Less discretionary spending due to higher fuel prices and higher interest rates will hurt future revenues for these companies.
What happened in the markets you invest in?
The fragile recovery appearing in the NZ economy has been put on hold by the hostilities in Iran. Immediate effects in fuel, freight and interest rates are quickly being followed by prices rises in oil derivatives (such as plastic plumbing pipes) and interest rates as the inflationary outlook worsens.
Kathmandu is an example of how quickly conditions can change for those companies carrying significant debt. Despite a strong sales result and a reasonable outlook pre the Iran war, their bankers grew impatient with the rate of debt pay down and risks from the conflict. The bankers forced an equity raise at an inopportune time. Whilst a rights issue keeps most shareholders whole from a dilution of ownership perspective, raising equity at an implied cost above 15% (due to the low issue price) to pay back debt with an interest cost of 6% is not a way to create value for shareholders.
Stocks with defensive earnings performed strongly, led by Fonterra, Infratil, Channel, Vector, A2 Milk and Chorus.
What are we thinking about the future?
Some of the negative effects to earnings over the next six months are locked in. Even if the conflict ends in the next month, neither oil prices nor interest rates will likely fall quickly to the levels that applied in February. A quick resolution will however allow equity markets to look through these impacts, and a reasonable rebound in the NZ equity market could be expected.
If the war drags on with significant disruptions to fuel supplies however, then NZ growth will turn down materially at a time when inflation is high and the government has limited funds to offset pressures on consumers.
Whilst all our stock positions in the domestic cyclical sectors across retail, media, housing and gaming are supported by attractive valuations, negative earnings revisions will affect short term share price performance. With the risk of material earnings falls and an already strong exposure to an economic rebound in the portfolio, we will control risk and look to add to only those companies with strong balance sheets and the least impacted near-term earnings until we have greater clarity.