Summer Global Equities
Summer Global Equities fund performance summary as at 30 June 2021.
Fund at a glance
Unit price (as at 30 June 2021): $1.8087
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% | 12.29% | 3.81% | 3.83% | 15.64% | 10.40% |
| 17.50% | 12.74% | 3.72% | 3.92% | 16.28% | 10.84% |
| 10.50% | 13.04% | 3.67% | 3.98% | 16.71% | 11.12% |
^ 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 | ANZ transactional bank account | 5.41% |
| 2 | Amazon.com, Inc. | 5.30% |
| 3 | Visa Inc.- Class A Shares | 4.96% |
| 4 | Alibaba Group Holding-Sp Adr | 4.00% |
| 5 | Salesforce.com, Inc. | 3.67% |
| 6 | Microsoft Corporation | 3.65% |
| 7 | Citigroup Inc | 3.14% |
| 8 | Takeda Pharmaceutical Co Limited | 3.09% |
| 9 | Mondelez International Inc | 2.98% |
| 10 | Baxter International Inc. | 2.66% |
The top 10 investments make up 38.86% of the fund.
Manager's Commentary
Market Commentary and Performance
For the quarter ending 30 June 2021, the Global Equities fund delivered positive returns.
However, the strong re-rating of global cyclical “value” companies relative to “growth” companies together with the appreciation in the New Zealand dollar, meant the fund underperformed in relation to its market index.
Summer Global Equities delivered a return of 3.83% for the June quarter.
The best performing stock exposures in the portfolio over the June quarter were: Alphabet, Amazon, Kering (which we have sold), Nike, Stellantis, Mondelez, Salesforce and Visa.
The worst performing exposures in the fund over the quarter were: Royal Phillips, Takeda, Siemens Energy and Ping An.
The main cause for the relative underperformance was the fund’s underweight exposures to equities within the value sectors (energy, financials, industrials and materials).
Portfolio Positioning and Outlook
Looking ahead, we believe the home-oriented companies that have benefitted from nesting and working remotely will begin to underperform more internationally-oriented growth companies as economies re-open their borders and workers re-locate back to the workplace.
In other words, a shift in spending away from the suburbs and regions and back to the main cities and provincial capitals. Against this backdrop, we see better value for risk in growth companies, although we note that this rotation back to growth may still be several months away.
Over the June quarter the Summer Global Equities trimmed exposures that have performed well and had become more expensive (Alphabet, Fortinet, Fiserv, NVIDA, Kering, LVMH and Comcast) in our view.
The main areas in which we increased exposures were:
- Industrials, by buying Siemens Energy and the automotive companies Porsche, (which owns a 53% stake in Volkswagen) and Stellantis (whose key brands include Peugeot, Citroen, Fiat, Chrysler, Jeep, Maserati and Alfa Romeo);
- Energy (Australian listed Oil Search), based on our belief that LNG prices (indexed to oil prices) will strengthen over the next 12 months, and
- China, by adding to our Alibaba holding and introducing JD.com and Baidu to the fund. In our opinion these stocks have been oversold on the back of recent intervention by Chinese regulators and offer attractive value
We actively manage the fund’s foreign currency exposures. As at 30 June 2021, the fund’s foreign currency exposures represented 94.59% of the value of the fund. After allowing for foreign currency hedges in place, approximately 66.72% 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.
