Summer Global Equities

Summer Global Equities fund performance summary as at 30 April 2024.

Fund at a glance

Unit price (as at 30 April 2024): $1.9722

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% 8.71% -2.04% 4.87% 18.66% 3.71%
17.50% 9.04% -2.05% 4.79% 18.92% 3.84%
10.50% 9.26% -2.06% 4.73% 19.09% 3.93%

  ^ 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 Intermede Global Equity Fund 33.32%
2 Alphabet Inc. Class A 2.33%
3 ANZ transactional bank account 2.03%
4 Microsoft Corporation 1.99%
5 Visa Inc. Class A Shares 1.74%
6 The Proctor & Gamble Company 1.70%
7 Amazon.com Inc. 1.59%
8 Nestle S.A. 1.58%
9 The Walt Disney Company 1.50%
10 Apple Inc. 1.48%

The top 10 investments make up 49.26% of the fund.

Manager's Commentary

What happened in the markets that you invest in?

Global Equities gave back some of the gains from the March quarter on fears that monetary policy easing may not come quickly enough. Many global markets are seeing a jaggered fall in inflation, rather than a straight line down. US economic growth for the March quarter came in below forecast, but markets such as the UK and EU showed some improvement off low bases.

The European and UK regions outperformed the US and the global average. There are signs of an improving economic outlook in the Euro area as manufacturers are seeing some uptick in demand. The Japanese market gave back a chunk of its first quarter gains, whilst China continued to rebound on signs of stabilisation in economic growth. 

NZ dollar weakness against major currencies offset some of the equity market weakness in the fund. 

How did your portfolio perform?

Summer Global Equities delivered a return net of fees and before tax of -2.07% in April for the 12 months to the end of April the fund delivered a return net of fees and before tax of 19.34%.

In general terms, stocks with lower earnings volatility outperformed across the globe. The key holdings driving the fund’s outperformance were our positions in Google and AIA Group (an insurance company with a big position in China). Google’s share price rose after first quarter earnings and sales beat estimates while AIA recovered some prior month losses on strong first quarter sales numbers.

Stocks that detracted from relative performance were Uber, Equifax and Disney. Equifax missed revenue guidance expectations on the weaker mortgage market while Uber and Disney valuations were impacted by higher interest rates. Both companies are due to report quarterly earnings in May.

We actively manage the fund’s foreign currency exposures. As at 31 April 2024, these exposures represented 97.62% of the value of the fund. After allowing for foreign currency hedges in place, approximately 41.49% of the value of the fund was unhedged and exposed to foreign currency risk.

What are we thinking about the future?

The recent increase in interest rates challenged the valuation of equity markets, where the key US market has been rising faster than earnings have been growing. A weakening employment market and a consumer sector that is saving less than normal from their pay packets could put future earnings at risk in that market.

In other markets, demand is already weak, yet inflation is not falling fast enough for central banks to start cutting interest rates.

Geopolitical tensions remain high, with little progress on lasting solutions to the areas of active combat over the past few months. So far, a slightly firmer oil price and some freight disruptions have been the major economic impacts, but things can change rapidly.

Our current view is that slowing growth in the US and general economic weakness elsewhere will win the day, such that interest rate cuts will come before inflation is fully tamed. We believe that Central banks will not want to let a deep recession begin. 

 

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.