Summer Australian Equities

Summer Australian Equities fund performance update as at 30 April 2017. 

Fund at a glance

Unit price (as at 30 April 2017): $1.1514

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 Months
Fund 14.65% 1.71% 12.92% 17.45%

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 8.35%
2 Westpac Banking 8.12%
3 BHP Billiton 5.99%
4 ANZ Banking Group 5.59%
5 National Australia Bank 5.40%
6 ANZ Cash Deposit 4.63%
7 CSL 3.74%
8 Aristocrat Leisure 3.34%
9 Woolworths 3.21%
10 Boral 2.91%

The top 10 investments make up 51.28% of the fund.

Manager's comments

The recent recovery in the value of the Australian equity market, in general, continued over April. Summer Australian Equities delivered a positive return of 1.71%.

We believe investor sentiment has improved recently in response to better performing international equity markets, coupled with a respectable reporting season for Australian listed companies. That said, we caution of the potential for negative impacts associated with geopolitical events: North Korea, Russia et al.

We calculate much of the rise in the value of the Australian equity market over the past six months is due to the performance of major banking stocks. While the sector has been a major beneficiary of the rally in global equity markets, we also consider that the lift is based on improving fundamentals. Analysts are increasingly confident that major banks will not require much in the way of additional capital as Tier 1 requirements are now close to 90% complete.

In contrast to the banking sector, resource stocks remain less sought after, in our view. BHP reported a generally disappointing quarterly update in April. Part of this reflects one-off weather related problems. Nonetheless some analyst forecasts have been lowered.

South32 also reported a mixed production performance in the March quarter.

Medical device maker Resmed was another investment exposure to report a slightly below forecast result in April. However, we believe Resmed is well-run and that the company’s strong development pipeline remains very attractive.

CSL is an investment exposure in the fund which we assess to have a strong growth outlook and we note that a number of analysts have lifted profit forecasts for CSL; the stock closed April around record levels.

Qantas was another stock to improve noticeably this month. We think the airline is poised to make a capital return via a substantial share buy- back. Qantas has been a mixed proposition for the fund but for now we retain the exposure.

In other news this month, Bluescope Steel has agreed to sell its New Zealand iron sands division. The company is facilitating the sale through the provision of vendor finance. Bluescope Steel exposure has been a good contributor to the fund’s returns but given the inherently cyclical nature of earnings the position is now under review. 

Finally, as expected, the Reserve Bank of Australia (RBA) left the official cash rate at a record low of 1.5% at its April monetary policy announcement. Our reading of the RBA’s accompanying statement suggests to us that the regulator believes the housing sector is too strong to permit an easing whilst the broader economy is seen as too weak to absorb higher rates. The decision was widely expected by the market.



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.