Summer Australian Equities

Summer Australian Equities fund performance summary as at 31 December 2024.

Fund at a glance

Unit price (as at 31 December 2024): $2.0060

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% 7.85% -2.62% -1.07% 11.38% 7.62%
17.50% 8.23% -2.63% -1.09% 11.71% 8.03%
10.50% 8.48% -2.65% -1.10% 11.93% 8.30%

    ^ 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 BHP Group Limited 7.54%
2 CSL Limited 7.03%
3 Commonwealth Bank of Australia Limited 6.36%
4 Westpac Banking Corporation  4.60%
5 National Australia Bank Limited 3.79%
6 Australia and New Zealand Banking Group Limited 3.10%
7 Macquarie Group Limited 3.08%
8 Telstra Group 2.60%
9 Rio Tinto Limited 2.51%
10 Santos Limited 2.44%

The top 10 investments make up 43.08% of the fund.

Manager's Commentary

How did your portfolio perform?

Summer Australian Equities (the fund) delivered a return net of fees and before tax of -2.67% during December. For the 12 months to the end of December the fund delivered a return net of fees and before tax of 12.25%.

Key positive contributors to performance in December were our overweight positions in Santos and CSL. Santos benefited from higher oil prices and a long-term supply agreement with Shizuoka Gas.

Our long-standing overweight position in Biotech firm CSL also added to portfolio performance with the share price stable amidst a sharp market sell-off. CSL announced progress with both the US and European regulators on its new treatment, Garadacimab, during the month.

Key detractors from performance were our overweight positions in steel producer, Bluescope and private hospital operator, Ramsay Healthcare. Bluescope underperformed on the back of a contraction in US steel spreads which indicate the margin between steel producers input costs and output prices. These are now at levels suggesting a possible downgrade to earnings guidance. 

Ramsay Healthcare shares declined with a submission from a private hospital industry group suggesting the sector is in a funding crisis. The submission notes one third of private hospitals are making an operating loss under current funding settings and are calling on emergency government support. The company’s debt levels also remain a concern for the market given current earnings pressures.  

We actively manage your fund’s foreign currency exposures. As at 31 December 2024, these exposures represented around 98% of the value of the fund. After allowing for foreign currency hedges in place, approximately 57% of the value of the fund was unhedged and exposed to foreign currency risk. During December, the New Zealand dollar fell 0.35% against the Australian dollar.

What happened in the markets that you invest in?

The broader Australian equity market fell in December, led by declines in the Real Estate and Materials sectors. September quarter GDP grew by 0.3%, which was below market expectations. Growth was driven by record-high public sector demand, now representing 28.8% of the Australian economy, while household consumption and business investment remained weak.

What are we thinking about the future?

December was a weak month for Australian equities, with most market segments delivering negative returns. Pleasingly, after increasing the fund’s exposure to the energy sector last month, these names boosted portfolio performance in December. Despite a correction from the lofty oil prices of mid-2024, our favoured energy stocks remain highly profitable at current oil prices, and we will continue to add to these positions on further share price weakness.

Core inflation is easing toward the Reserve Bank of Australia’s target, suggesting potential future rate cuts despite a strong labour market. After its soft finish to the year, we are warming to the real estate sector which will benefit from lower interest rates.




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.