Summer Global Equities

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Summer Global Equities fund performance summary as at 31 December 2017. 

Fund at a glance

Unit price (as at 31 December 2017): $1.2359

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

 Annualised total since inception1 Month3 Months1 Year
Fund 17.22% -2.10% 4.98% 20.12%

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 6.67%
2 NIKE, Inc. 4.47%
3 Facebook Inc.- A 4.02%
4 Starbucks Corporation 3.91%
5 Alphabet Inc Class A 3.80%
6 Shire plc 3.34%
7 Ping An Insurance (Group) Company of China, Limited 3.23%
8 Celgene Corporation 3.05%
9 Medtronic Inc. 2.92%
10 The Walt Disney Company 2.89%

The top 10 investments make up 38.30% of the fund.

Manager's comments

Fund performance

Summer Global Equities reported a loss of 2.10% for the month, but delivered returns of 4.98% for the three months to December and 20.12% for the year. 

Market Commentary

Following the disappointing returns reported in 2016, we outlined in our January 2017 commentary that our strategy was to “remain biased towards US listed global companies and towards key sectors that offer growth: Consumer, Healthcare, Technology/Media and Chinese equities”.  Pleasingly that strategy delivered well for the fund, mainly due to our exposures to the Technology/Media sector and Chinese equities. The fund held exposures to 49 stocks over 2017, of which there are presently 37 retained by the fund.

Over 2017 there were four Chinese exposures (Ping An, Tencent, Alibaba and Baidu) that were amongst the Top 15 contributors to the fund’s performance in 2017. 

Portfolio Positioning

Heading into 2018 the fund plans to maintain a strong position towards Chinese exposures and the Technology/Media sectors.  However, given the strong returns achieved by these two sectors in 2017, our plan is to rotate some of these gains through making the following changes to the portfolio.

Technology: we believe that it is unlikely that some of the global leaders (Apple, Amazon, Alphabet and Facebook) will be able to repeat the superb returns achieved in 2017.  Our strategy is to down-weight and broaden our technology company holdings to include emerging technology leaders and companies that offer new areas of innovation.  

Healthcare: 2017 was another challenging year for the healthcare sector.  Following two years of underperformance, we expect a positive re-rating from the sector and therefore we plan to lift our weighting in the sector (currently around 20%).

Consumer: in 2017 European global consumer stock exposures performed well relative to their US peers. We believe the strength in the Euro will benefit the US listed global consumer stock exposures (Nike and Starbucks), and the sector generally should benefit from the anticipated synchronised pick-up in global growth and consumer spending. 


The outlook for 2018 is equally as challenging as this time last year, but for different reasons.  Last year Global equities had favourable investment attributes but there was anxiety towards the global economy due to slowing growth in China,  the unknown impact from Brexit and the economic uncertainty that came with the  election of Donald Trump as the US President. Over the past 12 months investors have been handsomely rewarded for taking on this risk.

The low interest rate environment is positive for global equities, particularly for companies that are able to grow earnings by more than 7%p.a. However, the “elephant in the room” in 2018 is “Inflation” and in this regard we want to maintain exposures toward companies and sectors that can quickly manage the risk of rising inflation.

We are expecting more of the same creative disruption that technology was instrumental in causing during 2017. In particular, we expect developments in artificial intelligence, robotics, genetic engineering and social media to be key areas that will help to drive earnings growth in 2018.


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.