Summer Global Equities

Summer Global Equities fund performance summary as at 31 March 2019.

Fund at a glance

Unit price (as at 31 March 2019): $1.3004

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 or the product disclosure statement

Fund objective and strategy

See the Global Equities page for the Summary of investment objective and strategy.

Fund returns

 Annualised total since inception1 Month3 Months1 Year
Fund 10.07% 1.59% 13.24% 5.77%

Fund returns are calculated net of fund charges, trading expenses and accrued tax for a New Zealand resident individual paying tax at the highest Prescribed Investor Rate (28%)


Top 10 investments

  Asset name % of fund net assets
1 Comcast Corp Class A 4.39%
2 ANZ Cash Deposit 4.23%
3 FedEx Corporation  3.85%
4 Visa Inc.- Class A Shares 3.85%
5 ING Group N.V. 3.83%
6 Siemens AG-Reg 3.78%
7, Inc. 3.68%
8 Alphabet Inc Class A 3.54%
9 Apple Inc. 3.46%
10 Celgene Corporation 3.44%

The top 10 investments make up 38.05% of the fund

Manager's comments

Market Commentary

Global markets staged a solid recovery over the March 2019 quarter, reversing most of the losses of the December quarter. The fund’s strategy in November 2018 was to re-weight into our favoured high conviction stock exposures and this has worked well. We are currently reviewing our portfolio holdings with a view to broadening the number of stock exposures and to include: i) Company exposures that should benefit from a Brexit rally once the UK’s withdrawal from the EU is resolved; and ii) Global defensive consumer staples that remain undervalued.

Portfolio Positioning

We believe international stocks are offering comparatively good value. Below we discuss four key market concerns and how the fund will be positioned given these risks.

Political rhetoric normally presents a good investment opportunity. When you look at the long-term chart of a global equity index (e.g. MSCI ACWI Net Total Return), you will see very few periods in which political rhetoric has had any lasting detrimental impact on the equity market. Our observation is that great companies tend to benefit from politics; they are expert at dealing with politics. Therefore corrections driven by political noise tend to present investment opportunities across the global leaders, which is how we repositioned the portfolio last quarter.

We continue to have exposure to China. China is still growing and while the growth rate is down on prior years it still represents a key source of substantial growth for world economies. We believe a resolution in the USA/China trade negotiations would likely be positively received by the market.  Chinese companies appear undervalued, which is why we have a 15% exposure to Chinese companies.

Watch out for the Brexit rally. We expect almost any of the likely Brexit outcomes to result in positive returns from UK equities. We are currently researching a Brexit investment to introduce into the fund on the basis that we expect the UK market to have a relief rally following any resolution.

Low interest rates are here for longer. Growth becomes more valuable than defensive yield in a low interest rate environment. Therefore our primary holdings continue to target companies with above average growth prospects over the medium-term and where we have conviction in business models that will enable effective navigation of the current backdrop of a slowing global growth, political disruption and trade tensions. We are also looking for undervalued consumer staples stocks to invest in.

We actively manage the fund’s foreign currency exposures. As at 31 March 2019, these exposures represented 95.77% of the value of the fund; the remainder of the fund was invested as New Zealand dollar cash. After allowing for foreign currency hedges in place, 81.01% of the value of the fund was unhedged and exposed to foreign currency risk.


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.