Summer Australian Equities fund performance summary as at 31 December 2019.
Unit price (as at 31 December 2019): $1.2869
Date the fund started: 19 September 2016
For information on fees, see our Fees page.
See the Australian Equities page for the Summary of investment objective and strategy.
|Annualised total since inception||1 Month||3 Months||1 Year||3 Years|
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%).
|Asset name||% of fund net assets|
|2||BHP Group Limited||10.10%|
|3||Commonwealth Bank of Australia Limited||8.37%|
|4||Westpac Banking Corporation Ltd||7.21%|
|5||National Australia Bank Limited||5.33%|
|6||Australia and New Zealand Banking Group Limited||4.10%|
|9||ANZ transactional bank account||3.83%|
|10||Telstra Corporation Limited||3.69%|
The top 10 investments make up 61.14% of the fund.
Summer Australian Equities posted a return of -3.26% for the quarter, mostly a consequence of an appreciating New Zealand Dollar, which increased in value by close to 3.5% in relation to the Australian dollar. The fund delivered a return of 14.63% for the 12 months to 31 December 2019.
Summer Australian Equities disappointingly underperformed the S&P/ASX200 Accumulation Index (50% hedged to the NZD) in the quarter under review. However, over half this underperformance was due to running a 15-20% hedged currency position versus a benchmark of 50% hedged as the NZD/AUD appreciated from .9279 to .9599. As the portfolio transitioned from the retiring portfolio manager (Malcolm Davie) to the new portfolio manager (Jason Lindsay) we elected to approximate the portfolio’s investments to that of the S&P/ASX20 Index. This was a short-term transition only, which performed largely as expected however the ASX20 Index did underperform the ASX200 index modestly (0.87%) during the quarter under review. By year end we had reverted to our active strategy with the key themes being underweight banks, overweight resources, good exposure to a number of defensive names (Atlas Arteria, Goodman Group, Scentre Group, Transurban, Telstra, Viva Energy, Wesfarmers, and Woolworths) and a healthy smattering of growth stock exposures (including Aristocrat Leisure, Altium, a2 Milk, CSL, NEXTDC, REA, Resmed, Treasury Wines, and Webjet).
The key investment decision over the next quarter will involve the strength of the global economy and the likelihood of a successful resolution to the trade war between the US and China plus managing tensions in the Middle East. A positive outcome would be the catalyst for a sharp recovery in resource stocks and equities exposed to global growth in our view. The Australian market continues to offer options in this regard and this strategy underpins the fund’s current composition.
We actively manage the fund’s foreign currency exposures. As at 31 December 2019 these exposures represented 96.17% of the value of the fund; the remainder of the fund was held as New Zealand dollar cash or cash equivalents. After allowing for foreign currency hedges in place, 82.27% of the value of the fund was unhedged and exposed to foreign currency risk.
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.