Summer Global Equities

Summer Global Equities fund performance summary as at 31 January 2024.

Fund at a glance

Unit price (as at 31 January 2024): $1.8862

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% 8.31% 3.70% 12.96% 20.38% 4.13%
17.50% 8.66% 3.68% 13.33% 20.58% 4.32%
10.50% 8.90% 3.67% 13.57% 20.72% 4.45%

  ^ 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 Intermede Global Equity Fund 32.60%
2 ANZ transactional bank account 2.52%
3 Alphabet Inc. Class A 2.05%
4 Microsoft Corporation 1.98%
5 Visa Inc. Class A Shares 1.81%
6 The Proctor & Gamble Company 1.67%
7 Nestle S.A. 1.56%
8 Apple Inc. 1.52%
9 Inc. 1.46%
10 Siemens AG-Reg 1.33%

The top 10 investments make up 48.49% of the fund.

Manager's Commentary

What happened in the markets that you invest in?

Global stocks ended flat in January after a strong finish to 2023. The US market was again amongst the top performing regional markets on more optimism for a gentle deceleration in economic growth. Reports of better GDP growth and robust tech earnings further fuelled gains in the ‘Magnificent Seven’ stocks, which are traded in that market. Earnings season is in full swing, and we watch for revisions to future profit growth that which is currently forecast to be robust. 

Japan was the best performing major regional market. Their market index posted a 7.8% gain in the month, as supports from low interest rates and government stimulus aid growth. China’s economy has continued to grow at a reasonable headline pace, but consumer prices are falling, and economic confidence is low. The Chinese market was a very weak performer, falling 10.0% 

Eurozone equities delivered positive returns of 2.1% but UK stocks lagged their global peers. Manufacturing activity and business conditions have improved from a low base but cannot be described as buoyant. The European Central Bank (ECB) kept interest rates unchanged in January but continues to indicate that rate cuts are not likely in the very short term. 

How did your portfolio perform?

Summer Global Equities delivered a return net of fees and before tax of 3.66% in January. For the 12 months to 31 January the fund delivered a return net of fees and before tax of 20.92%. 

Growth and low volatility stocks performed well during the month whilst value stocks lagged. The thematic growth and Te Ahumairangi portfolios led gains against the market index, whilst Intermede, the ‘growth at a reasonable price’ manager we use in the fund didn’t match the market index return. 

Key positions driving outperformance were not owning Tesla and a large holding in ASML, a Dutch semiconductor lithography company which reported better-than-expected sales momentum into 2024 and 2025. The portfolio did not match the market index positions in Nvidia and Meta Platforms, both of whom performed strongly during the reporting season. 

On the currency front, our hedging overlay detracted value as New Zealand dollars reversed some of its gains against the US dollars. 

We actively manage the fund’s foreign currency exposures. As at 31 January 2024, these exposures represented 96.00% of the value of the fund. After allowing for foreign currency hedges in place, approximately 40.86% of the value of the fund was unhedged and exposed to foreign currency risk.

What are we thinking about the future?

There are vastly different economic and market valuation backdrops in the regions in which your fund invests. Our three global equity managers are tasked with finding the best risk-adjusted stocks using their complimentary and diversified investment styles, while staying very aware of the macroeconomic outlooks for the countries in which they operate.

The US economy continues to grow with the equity market expecting strong earnings growth. The current earnings season will shed some light on the start of the year. The UK and Europe have higher inflation and weaker economies, but their equity markets trade at more attractive valuation levels. China still has positive economic growth and on the face of it a cheap equity market, but uncertain Government regulation has created risk for investors.

In January 2023 economists expected a recession. Positively, that did not happen as job markets and consumer spending stayed stronger than expected. At the start of 2024, the consensus view is that the US economy will grow, and economic slowdowns elsewhere will be mild. We also think this is the base case but have not yet entirely ruled out the possibility of recession as the full impact of two years of interest rate increases on consumer demand has yet to fully play out.  

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.