Summer Global Equities

Summer Global Equities fund performance summary as at 31 May 2022.

Fund at a glance

Unit price (as at 31 May 2022): $1.5678

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% 7.41% -1.15% -6.78% -10.28% 5.74%
17.50% 7.81% -1.08% -6.76% -10.19% 6.13%
10.50% 8.07% -1.03% -6.74% -10.13% 6.38%

  ^ 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 S&P500 E-Mini Future Jun22 16.66%
2 Vanguard ESG US Stock ETF 13.73%
3 Intermede Global Equity Fund 11.53%
4 Vanguard ESG International Stock ETF 9.83%
5 ANZ transactional bank account 7.90%
6 STOXX EUROPE 600 Jun22 5.21%
7 Jarden USD Margin Account 2.46%
8 NIKKEI 225 (SGX) Fut Jun22 1.81%
9 Te Ahumairangi Global Equity Fund 1.59%
10 Siemens AG-Reg 1.46%

The top 10 investments make up 72.18% of the fund.

Manager's Commentary

Market Commentary

May saw a continuation of themes from April. Inflation repeatedly surprised to the upside and saw central banks rapidly move towards raising short term interest rates. The Ukrainian crisis appears far from resolved, with Russia’s European neighbours escalating the sanctions they have imposed on her. Chinese growth has been hit hard by the Omicron wave and related economic shut downs. The government there has announced stimulus to boost the economy, but it is expected to take some months to show up in economic activity.

Portfolio Performance

Summer Global Equities delivered a return of -1.15% during May and for the 12 month period to date delivered a return of -10.28%.

Outlook

We have all heard the expression “Death by a thousand cuts”. That seems to be the current process in global equity markets right now. Each month we are seeing global growth revised lower, interest rate expectations higher and an extension of the time period for inflation to fall. Equity markets have reacted very strongly to this trend, with double digit falls in many markets on a year to date basis

Those falls have seen some of the highest valuations removed from the market, and in some cases a return to longer term average multiples, such as the price to earnings ratio. However, a report from Empirical Research Partners recently reviewed the March quarter company reporting round and found the first evidence of profit margin falls and rising capital expenditure, despite still robust revenue growth. A fall in profit margins and a slowing revenue line, caused by lower economic growth, would be a further headwind to valuations, and we remain cautious on the outlook.

The funding of our two new global equity managers to create a multi manager product (combined with our current portfolio) is well advanced and will be completed in June. The addition of new manager styles will create a more diversified portfolio.

We actively manage the fund’s foreign currency exposures. As at 31 May 2022, the fund’s foreign currency exposures represented 78.97% of the value of the fund. After allowing for foreign currency hedges in place, approximately 13.55% of the value of the fund was unhedged and exposed.

 

 

 

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.