Summer Global Equities
Summer Global Equities fund performance summary as at 30 June 2025.
Fund at a glance
Unit price (as at 30 June 2025): $2.2490
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% | 9.10% | 1.20% | 3.18% | 11.29% | 14.43% |
| 17.50% | 9.41% | 1.28% | 3.31% | 11.24% | 14.71% |
| 10.50% | 9.62% | 1.33% | 3.40% | 11.20% | 14.90% |
^ 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 47.52% 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 1.40% for the month of June. For the 12 months to the end of June the fund delivered a return net of fees and before tax of 11.15%.
Equity market returns have broadened across all sectors and regions since last year’s ‘Magnificent 7’ rally. However, in June the Magnificent 6 (the Mag-7 ex-Tesla) re-asserted itself and drove markets higher as Technology and Artificial Intelligence names regained momentum. Growth stocks drove markets higher whilst defensive sectors and value stocks underperformed.
All three of our managers are significantly underweight the Magnificent 7 on valuation grounds, so whilst Tesla’s 14% decline helped performance, Nvidia was a drag on relative performance as it approached new all-time highs. As expected, with risk appetite returning, our low-volatility manager underperformed whilst the conviction positions of our two growth managers did not keep up with the market leaders.
We actively manage the fund’s foreign currency exposures. Our active currency hedging made a marginal contribution as the New Zealand dollar rose 1.67% against the US dollar over the month.
What happened in the markets that you invest in?
Global equity markets continued last month’s gains as the negative sentiment from trade tensions abated. The impact of tariffs on corporate margins looks to be less than feared, but it is still early days. Following modest earnings downgrades in April and May, on the back of the tariff announcements, analysts have started upgrading again, assisted by a weaker US dollar. The US direct entry into the Iran/Israel conflict saw a spike in oil prices and equity market volatility, but much of that unwound with a ceasefire and ongoing diplomatic talks.
Developed markets rose 4% over the period with US and Asia (ex-Japan) outperforming while growth stocks outpaced value, and emerging markets also performed well.
US interest rates fell during the month, supporting equity markets, but US dollar weakness and increasing US government debt remain risks to that market. In our view, current pricing in fixed interest and currency markets reflect a balance of risks, whilst equity markets are pricing in very favourable outcomes.
What are we thinking about the future?
We continue to believe the risks to global equity market are greater than what is currently priced in. Despite persistent tariff tensions, budget risks and global conflicts, investors appear overly optimistic about future earnings prospects. Following the market's rebound, sentiment in the US is once again at euphoric levels, on the measures we use.
Global earnings revisions have only been modestly negative, and markets are taking the view that whatever risks arise, governments and central banks will underwrite equity market returns. We are more cautious, and our managers are tilted away from the most expensive regions.
The Global Equities Fund remains underweight US equities and overweight Europe and Japan. In aggregate, we remain underweight the Magnificent 7. Our managers continue to adjust portfolio positions 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.
