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 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% |
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 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.
Minimum suggested investment timeframe
At least five years
Fund at a glance
Unit price (as at 31 January 2026): $1.8942
Date the fund started: 18 October 2019
Fund returns
| PIR | Total since inception^ | 1 Month | 3 Month | 1 Year | 3 Years^ |
|---|---|---|---|---|---|
| 28% | 7.08% | -0.75% | 0.07% | 5.35% | 3.70% |
^ 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 | 14.11% |
| 2 | Auckland International Airport Limited | 7.84% |
| 3 | Infratil Limited | 6.53% |
| 4 | Spark New Zealand Limited | 5.02% |
| 5 | Ebos Group Limited | 4.97% |
| 6 | Contact Energy Limited | 4.68% |
| 7 | Meridian Energy Limited | 4.43% |
| 8 | Mainfreight Limited | 4.23% |
| 9 | Ryman Healthcare Limited | 3.18% |
| 10 | The a2 Milk Company Limited | 3.10% |
| Top 10 investments total | 58.09% | |
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
–0.71% during January. For the 12 months to the end of January, the fund delivered a return after fees and before tax of 6.36%.
Key positive contributors to performance in January were overweight positions in Michael Hill International (MHJ), Tower and Sky City (SKC), along with underweights in A2Milk and the property sector. MHJ and SKC rallied on improved macro-economic prospects for consumers; Tower paid a ~12% gross dividend during the month. A2Milk reacted to weak birth numbers in China, whilst the property sector has quickly derated on the back of higher medium-term interest rates.
Key detractors from performance in January were an underweight in Fisher and Paykel Healthcare (FPH) and a modest overweight in Vista Group, which fell 28%. FPH rallied on a strong start to the Northern Hemisphere flu season, whilst Vista failed to confirm a large contract win pre-Christmas.
What happened in the markets you invest in?
January is a typically a quiet month for announcements. The most significant this month being that Fletcher Building has agreed to sell its highly volatile construction division, in-line with its announced strategy under new management. Later in the month, the listed retail sector updated the market on Christmas trading. Sales were generally better than we expected but were driven by greater discounting. Profit margins were therefore a little softer than anticipated.
Economic data generally came in on the positive side across business confidence, building consents and manufacturing production. Global prices for most of our agriculture and horticulture products continued to improve also.
What are we thinking about the future?
Evidence continues to build that a domestic economic recovery is getting underway. The February reporting season will be crucial with regards to company outlook statements. The reported period to December is unlikely to be stellar, but we would hope to see accelerating revenues into the next half. Encouragingly, there have been very few companies downgrading their expectations ahead of their result day.
Rising interest rates, driven by both stronger expected growth but also still sticky inflation, saw the aged care and property sectors struggle over the month. In property we see Stride Property and Vital Healthcare offering attractive risk adjusted returns relative to other defensive stocks, whilst we think aged care looks attractive, but earnings growth will be delivered over a longer timeframe.