Summer Global Equities

Summer Global Equities fund performance update as at 30 June 2017. 

Fund at a glance

Unit price (as at 30 June 2017): $1.1064

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

 Total since inception1 Month3 Months6 Months
Fund 9.91% -1.53% -0.40% 8.06%

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 8.51%
2 NIKE Inc 3.90%
3 Delphi Automotive PLC 3.85%
4 Facebook Inc-A 3.79%
5 Starbucks Corp 3.26%
6 Allergan PLC 3.04%
7 Illumina Corporation 3.02%
8 Medtronic Inc. 3.00%
9 Alibaba Group Holding-Sp Adr 2.96%
10 Celgene Corp 2.92%

The top 10 investments makes up 38.25% of the fund.

Manager's comments

The fund delivered a loss of 1.53% for the month, as the value of global equities, in general, continued to consolidate after a strong start to the year. 

We reiterate our update from last month that the key source of positive performance for the fund over the past six months has been the fund’s exposure to Chinese stocks and Global Technology stocks:

Chinese stocks. The fund’s weighting in Chinese equites has increased to 19%. We have increased our allocation to Chinese stocks over the course of the year, based on their relative outperformance.  Impressively, nine out of the 13 Chinese stocks we own comfortably outperformed the broader market over the past six months. The top seven Chinese stocks in order of contribution to the fund’s outperformance were: Alibaba, Tencent, NetEase, Beijing Capital International Airport, Zhejiang Expressway, Ping An, and China Resources Power.

Global Technology stocks. The fund has a key exposure of around 25% to the Technology/Media sector, which has performed well over the past six months. In order of contribution to the fund’s performance they were: Facebook, Delphi Automotive, Amazon, Apple, Visa and Alphabet.

The core strategy for the fund over the past few months has been to rebalance the exposure to e-Commerce technology stocks within the fund. We have done this by taking profits in the exposures to some of our global technology companies that we believe look fully valued at current prices (Apple, Alphabet and Amazon) and reinvesting the proceeds into exposures to what we assess as their Chinese equivalent leaders (Tencent, Baidu and Alibaba). Our approximate combined weightings in the e-commerce world leaders are now:

Facebook and Tencent  7% and Alibaba   5%
Alphabet and Baidu  4%

Exposures to the Healthcare stocks have been the key laggards within the fund over the past six months.  Amongst the Healthcare positions only two have outperformed the broader market -  Illumina and Medtronic. Four Healthcare exposures have substantially underperformed the market - Gilead, Bristol Myers Squibb, Walgreen Boots and Shire Plc.  However, we maintain our confidence in the investment fundamentals of the Healthcare sector and on this basis expect to see the underperformance of the past six months partially reverse over the next six months.

Given the substantial outperformance from exposures to Chinese stocks, we plan to reduce the fund’s positioning to China from the current 19% to a targeted level of 15%. Tactically the fund will use the proceeds from this rebalancing to up-weight exposures to two key sectors that we believe are overdue a period of outperformance - Healthcare and Consumer. 


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.