Summer Global Equities

Summer Global Equities fund performance update as at 31 March 2017. 

Fund at a glance

Unit price (as at 31 March 2017): $1.1087

Date the fund started: 19 September 2016

For information on fees, see our Fees page.

Further information can be found in the product disclosure statement

Fund objective and strategy

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

Fund returns

 Total since inception1 Month3 Months6 Months
Fund 10.35% 3.84% 8.49% 9.99%

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 ANZ Cash Deposit 7.20%
2 Nike 4.54%
3 Facebook 4.40%
4 Delphi Automotive 4.36%
5 Starbucks 4.02%
6 Apple 3.83%
7 Allergan 3.68%
8 Walt Disney 3.50%
9 Twenty-First Century Fox 3.48%
10 Medtronic 3.35%

The top 10 investments makes up 42.36% of the fund.

Manager's comments

The fund delivered a return of 3.84% for March, continuing to benefit from the positive re-rating of global equities enjoyed since the November 2016 United States election.

Fundamentally, there has been no change to the portfolio’s construction, which is weighted towards investment exposures that we believe have favourable ‘value-for-risk’ investment attributes. Our belief is that, over time, companies with above-average growth prospects are more likely to create shareholder wealth and are better placed to navigate through broad economic cycles.

Furthermore, over the course of the year we expect to see ‘growth’ outperform ‘cyclical’ stocks and this is how the fund’s exposures have been positioned. The fund’s exposures are biased towards global companies listed in the United States and favour key sectors that offer growth such as Consumer, Healthcare and Technology/Media, in addition to Chinese equities.

On a sector basis, the largest contributor to the fund’s performance over March were consumer discretionary exposures and in particular Delphi Automotive.

Other positive contributions came from the technology, financials and industrial sectors, while the largest drags on portfolio performance came from our exposures to property-related and energy sectors.

In reviewing the fundamental drivers of stock specific performance:

Delphi: which we believe exhibited further momentum over the month and received a number of favourable broker upgrades over March.

Facebook: product development such as new ‘snapchat-like’ features launched across its portfolio of applications; also benefitting from the diminished lustre of Google as an advertising channel due to  YouTube scrutiny.

ING: removal of the Dutch election overhang and the market reassessment of a more positive Europe, especially the financials sector.

Beijing Airport: Premier Li spoke at China’s National People’s Congress on tourism (re-allocating  China tourism spend back to the mainland); also the stock typically does well when the market does, essentially a proxy reflecting the economic performance of the wider Chinese economy.

Finally, we wish to flag some potential evolution to the portfolio over the quarter. Firstly, we expect to expand the number of investment exposures within the portfolio to more than 50 securities, whilst remaining consistent with our core philosophies. Secondly, the fund’s foreign currency exposure is likely to be partially hedged if and when the New Zealand dollar revisits its cycle lows of around 0.63 cents.


For more information on the Summer Global Equities fund, read the latest quarterly fund update.

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.