Summer Global Equities
Summer Global Equities fund performance summary as at 31 May 2025.
Fund at a glance
Unit price (as at 31 May 2025): $2.2181
Date the fund started: 19 September 2016
For information on fees, see our Fees page.
For more information on the Summer Global Equities fund, read the latest quarterly fund update and the product disclosure statement.
Fund objective and strategy
See the Global Equities page for the Summary of investment objective and strategy.
Fund returns
| PIR | Total since inception (annualised) | 1 Month | 3 Month | 1 Year | 3 Years^ |
| 28% | 9.04% | 3.19% | -1.33% | 13.06% | 12.19% |
| 17.50% | 9.34% | 3.26% | -1.27% | 12.93% | 12.32% |
| 10.50% | 9.54% | 3.30% | -1.23% | 12.85% | 12.40% |
^ 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
The top 10 investments make up 46.75% of the fund.
Manager's Commentary
How did your portfolio perform?
Summer Global Equities (the fund) delivered a return net of fees and before tax of 3.37% for the month of May. For the 12 months to the end of May the fund delivered a return net of fees and before tax of 12.72%.
A very rapid rebound from trade war induced weakness in April has seen narrow market leadership resume with the fund’s significant underweight in the ‘Magnificent 7’ U.S. large-cap stocks hurting performance relative to the index. The fund does not own Tesla and is underweight Nvidia—both stocks rose around 20%. Despite the trade war deescalating, we think the rebound underestimates current market risks.
As expected, with risk appetite returning, our low-volatility manager underperformed whilst our GARP and thematic growth managers underperformed due to not owning Tesla and Nvidia. The fund’s underweight in Eli Lilly and UnitedHealth helped performance, but overweight positions in Thermo Fisher, Alcon, and Baxter detracted, as healthcare was repriced lower due to tariff-driven cost pressures, despite strong long-term fundamentals.
Currency hedging contributed positively to performance, as the NZ dollar appreciated against the U.S. dollar over the month.
What happened in the markets that you invest in?
Global equity markets rebounded from year-to-date lows, narrowly avoiding a bear market. Progress in US trade negotiations with both the European Union and China helped ease recession fears and supported broad-based gains across all major regions. While the final shape of global trade remains uncertain—including the impact on trade flows, corporate margins, inflation, and interest rates—the recent tariff adjustments are notably less disruptive than the original proposals from the US administration.
Developed market equities rose 6.0% over the period, with US stocks leading performance. Growth stocks outpaced value, and emerging markets also performed well, aided by a weaker US dollar. Meanwhile, global bond markets reflected rising concerns, with longer-term interest rates increasing. This shift was driven not only by trade-related risks but also by questions around the sustainability of fiscal deficits used to support economic growth.
What are we thinking about the future?
Investor sentiment has turned more optimistic, with the S&P 500 now trading at 21.5x forward earnings—elevated, though not extreme. While not signalling an imminent correction, such valuations leave equities vulnerable to negative surprises in economic data or policy developments, as evidenced by market volatility in April. This rally has occurred alongside weakening earnings expectations and rising interest rates, a combination that typically weighs on equity performance.
The Global Equities Fund remains underweight US equities and overweight Europe and Japan. Despite the US comprising over 60% of the global equity index, we see stronger relative value in non-US markets. Our managers continue to adjust portfolio positioning in response to evolving fundamentals and valuation dynamics.
This is not a recommendation to buy or sell any financial product and does not take your personal circumstances into account. All opinions reflect our judgement on the date of communication and may change without notice. Past performance is not a reliable guide to future performance. We recommend you take financial advice before making investment decisions. We have prepared this web page in good faith based on information obtained from other sources, but we do not guarantee the accuracy of that information. We do not make any representation or warranty (express or implied) that this web page is accurate, complete, or current and to the maximum extent permitted by law disclaim any liability for loss which may be incurred by any person relying on this web page.
