Summer Australian Equities
Summer Australian Equities fund performance summary as at 31 July 2025.
Fund at a glance
Unit price (as at 31 July 2025): $2.1203
Date the fund started: 19 September 2016
For information on fees, see our Fees page.
For more information on the Summer Australian Equities fund, read the latest quarterly fund update and the product disclosure statement.
Fund objective and strategy
See the Australian 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% | 7.92% | 3.58% | 8.70% | 5.83% | 9.51% |
| 17.50% | 8.30% | 3.55% | 8.70% | 6.23% | 9.99% |
| 10.50% | 8.56% | 3.53% | 8.70% | 6.49% | 10.32% |
^ 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
The top 10 investments make up 41.44% of the fund.
Manager's Commentary
How did your portfolio perform?
The Summer Australian Equities Fund (the fund) delivered a return net of fees and before tax of 3.49% during July. For the 12 months to date, the fund delivered a return net of fees and before tax of 6.89%.
Key positive contributors to performance in July were our overweight position in Biotech firm CSL and our underweight position in the Commonwealth Bank of Australia (CBA). CSL shares rallied after the company announced plans to reduce costs within its R&D division. This was further supported by positive broker research highlighting the current valuation as attractive relative to historical norms. CBA shares finally underperformed in July as investors rotated our of financials into the resources and healthcare sectors. CBA’s valuation remains full with little prospect of material earnings growth in the near term.
Key detractors from performance were our underweight positions in oil and gas company, Woodside Energy Group (WDS) and Healthcare technology firm, Pro Medicus (PME). WDS shares rose after releasing a positive update in July. The company raised its guidance for production volume whilst lowering expected production costs which drove earnings forecast upgrades. PME shares rallied after announcing a material contract win with UC Health delivering ~$170m in revenue over 10 years, alongside a smaller contract worth $20m over five years.
We actively manage the fund’s foreign currency exposures associated with Australian equities. During the month the NZD fell -1.01% against the Australian dollar.
What happened in the markets that you invest in?
The Australian equity market rose 2.36% in July, led by the Healthcare and Energy sectors. In terms of macroeconomic data, Australian home prices hit record highs in July, while job ads dipped ~1% and unemployment held steady at around 4.3%. Consumer sentiment improved slightly, despite the Reserve Bank of Australia (RBA) holding the cash rate at 3.85%, defying rate cut expectations. Strong housing and labour data supported market resilience, though markets are now anticipate easing in August given the softer economic activity and moderating core inflation.
What are we thinking about the future?
The greatest risk to the Australian equity market over the next year is a potential US recession or broader global slowdown. Such an environment typically puts pressure on corporate profit margins and dampens investor risk appetite—particularly concerning given the market is currently trading at historically high valuation multiples.
That being said, this is not our base case. In recent weeks, global growth forecasts for 2025 and 2026 have been revised modestly higher, and despite weaker US employment data in early August, the odds of a sharp US slowdown appear to be fading.
The Australian macro backdrop remains supportive, with employment holding firm, inflation continuing to ease, and the RBA expected to deliver further rate cuts. Heading into the August reporting season, we remain overweight quality defensives (particularly Healthcare), where we see scope for margin recovery. We’ve also added to our Real Estate and long-duration Technology holdings, which we see benefiting from lower rates and improving sentiment.
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.
