Summer Australian Equities

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Summer Australian Equities fund performance summary as at 31 October 2017. 

Fund at a glance

Unit price (as at 31 October 2017): $1.2075

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 Australian Equities page for the Summary of investment objective and strategy.

Fund returns

 Total since inception1 Month3 Months6 Months1 Year
Fund 19.72% 7.33% 9.08% 4.42% 22.64%

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 Commonwealth Bank of Australia Limited 7.81%
2 Westpac Banking Corporation  7.60%
3 BHP Billiton Limited 6.79%
4 ANZ Cash Deposit 5.65%
5 National Australia Bank Limited 4.64%
6 Australia and New Zealand Banking Group Limited 4.15%
7 Woolworths Limited 3.60%
8 Rio Tinto Limited 3.58%
9 Aristocrat Leisure Limited 3.25%
10 AGL Energy Limited 3.06%

The top 10 investments make up 50.13% of the fund.

Manager's comments

Summer Australian Equities delivered a return of 7.33% for October.

October was a positive month for the broader Australian equity market which rose 7.26% in New Zealand dollar terms. Global growth continues to impress us and exposures with leverage to this dynamic remain well sought after. The Australian economy is also showing signs of renewed momentum; the Westpac-Melbourne Institute consumer confidence index reached a 12-month high in October.

In company news this month, Rio Tinto is once again believed to be considering the sale of its European and Australian aluminium smelting divisions. The suggestion is far from new but divestment would be welcomed by us.

Divestment strategies were also a topic in the Australian banking sector this month. ANZ has announced the sale of its OnePath pension and investment business to IOOF Holdings for AU$975m. The deal is part of a move by ANZ to exit non-core activities and build capital provisions to accommodate higher regulatory requirements. ANZ also released its full-year 2017 result this month and numbers met most analyst forecasts. ANZ remains a solid investment exposure and the fund’s position is unchanged.

Macquarie Bank was another financial exposure of the fund to release a result this month. The company reported a set of numbers that exceeded our forecasts by circa 5%. In response the stock price moved sharply higher to finish October up 8.2%. The fund will retain its current exposure to the stock.

Transurban also released a profit result this month. The company announced that quarterly revenue was up 11.4% over the previous quarter and confirmed recent speculation regarding taking a stake in the WestConnex road project. We welcome the move as we are keen to see the company develop further growth options.

Rounding out a month for trading updates, Qantas announced that group revenue was 5% higher in the most recent quarter. However, looking further ahead the company expects tougher conditions due to rising fuel costs.  Qantas has been a great performer for the fund and the fund will remain exposed to the stock, at least in the short-term.


For more information on the Summer Australian 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.