Summer Global Equities

Summer Global Equities fund performance summary as at 30 September 2018 

Fund at a glance

Unit price (as at 30 September 2018): $1.3779

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 or 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 16.22% -0.43% 4.83% 16.20%

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 9.88%
2 Johnson & Johnson 4.02%
3 NIKE, Inc. 3.94%
4 FedEx Corporation  3.89%
5 Comcast Corp Class A 3.74%
6 Medtronic Inc. 3.22%
7 Visa Inc.- Class A Shares 3.19%
8 Alphabet Inc Class A 3.12%
9 Facebook Inc.- A 3.03%
10 Ping An Insurance (Group) Company of China, Limited 2.77%

The top 10 investments make up 40.80% of the fund

Manager's comments

Market Commentary

While we still see healthy returns in global markets, the strong returns delivered over the past couple of years are making it harder for us to find value. This is a time to be cautious and to stay true to fundamental disciplines. We are resisting the trap of rotating investments into lesser quality cyclical investment exposures, where the perception of value can quickly be undone by earnings downgrades when economic conditions begin to slow. Our strategy is to target exposures with enduring growth across economic cycles, where we have assessed that the current fundamentals represent good value for risk.

Portfolio Positioning

Our starting point for identifying attractive stock exposures for our international equity portfolios is the sectors that are under-represented in the New Zealand and Australian markets: consumer, healthcare and technology. In addition we have chosen to back the Chinese industrial and technology leaders in order to have an emerging market exposure.

Healthcare stocks lift sharply. Our Healthcare exposures delivered the largest sector return over the September quarter. The best performers were: Illumina, Medtronic and Johnson & Johnson. We also made gains on several exposures that had been under pressure recently, namely Celgene and Gilead. We believe the Healthcare sector, in general, offers excellent value at current prices.

Information Technology stocks still look good value. The IT exposures in the fund collectively increased in the quarter, driven by the appreciation of Apple, Nvidia,, Visa, and Palo Alto Networks share prices. These positive returns were partly offset by the negative performance of three exposures: Flex, Travelsky, and Applied Materials. However, we increased the fund's exposures to Flex and Applied Materials over the quarter as we continue to see the technology sector as offering excellent value; hence, it remains a core sector exposure of the fund.

Consumer stocks benefit from synchronised economic growth. We see global consumer stocks performing well on the back of synchronised economic growth. Over the September quarter our consumer exposures return was driven by four key holdings: Amazon, Starbucks, Ferrari (driven – no pun intended!) and Nike.


Over the first nine months of 2018, Trump’s tax cuts and fiscal stimulus policies have gained market-wide support and equities globally have moved closer to fair value. We believe the risk is that these policies will eventually have negative consequences. The elephant in the room is the rising US budget deficit being forecast for 2019. In our view, this is a time to be wary and cautious. Rising costs are beginning to feature in management commentaries but with revenue growth outpacing cost inflation, a healthy medium-term earnings growth is being forecast.

The fund’s investment exposures are tilted towards growth and we have maintained a bias in favour of sectors that can deliver above average growth over the medium-term, in our view. Preferences here are Technology, Consumer growth, Healthcare and companies exposed directly or indirectly to China.

We actively manage the fund’s foreign currency exposures. As at 30 September 2018, these exposures represented 90.12% of the value of the fund and were unhedged.


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.