Summer Global Equities
Summer Global Equities fund performance summary as at 30 June 2024.
Fund at a glance
Unit price (as at 30 June 2024): $2.0282
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% | 8.82% | 2.82% | 0.11% | 16.40% | 3.53% |
| 17.50% | 9.17% | 2.82% | 0.35% | 16.86% | 3.76% |
| 10.50% | 9.41% | 2.83% | 0.51% | 17.16% | 3.90% |
^ 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 48.50% of the fund.
Manager's Commentary
What happened in the markets that you invest in?
The global equity market continued to rally in June. Regional markets performed well including the US, Asia and Japanese markets with emerging markets generally solid also. European and UK markets posted declines of more than -1%.
US-listed stocks, led by Nvidia and the continued excitement around Artificial Intelligence (AI), continued to push higher on solid economic momentum and positive earnings revisions. Value stocks outperformed growth stocks in Europe, Japan, and the UK but disappointed in the US.
European equities were impacted by concerns around the French snap-election, although any change of government is not expected to have a significant impact on financial markets.
Asian markets were robust in June with Taiwan leading the regional performance. China was weaker due to subdued consumer spending and continued weakness in the real estate market.
How did your portfolio perform?
Summer Global Equities delivered a return net of fees and before tax of 2.84% in June, and for the 12 months to the end of June the fund delivered a return net of fees and before tax of 17.62%.
It was a mixed performance for the three managers that make up Summer Global Equities. Our Growth at a Reasonable Price (GARP) manager performed well whilst our diversified, minimum volatility manager, and our conviction growth manager, both struggled.
The ‘Magnificent 7’ continued their strong run in June, contributing two-thirds of the total index return. Our positions in Amazon and Alphabet added to performance, as did positions in Adobe, HDFC Bank and Uber. Not holding enough Nvidia and Apple detracted value with our underweight holdings based on the managers’ views of already stretched valuations for those companies.
On the currency front, our hedging overlay reversed some of last month’s gains as the NZ dollar weakened against the US dollar.
We actively manage the fund’s foreign currency exposures. As at 30 June 2024, these exposures represented about 98% of the value of the fund. After allowing for foreign currency hedges in place, around 44% of the value of the fund was unhedged and exposed to foreign currency risk.
What are we thinking about the future?
With just seven or eight extremely large stocks dominating market performance (in a market of thousands of stocks), forming views on the appropriate price to pay for these technology and market leaders will continue to drive short term performance.
Although global equity markets continue to deliver attractive returns, our managers see risks around the valuation of these market leaders. All three managers continue to identify attractive companies to invest in with strong expectations for future returns. However, over the last twelve months the combination of these stocks has failed to keep up with the small group of market leaders.
We expect solid results out of the coming reporting season, particularly out of the US. However, we will pay particular attention to the outlook statements as global economies are growing below long-term averages after adjusting for population growth and inflation.
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.
