Summer Australian Equities

Summer Australian Equities fund performance summary as at 30 September 2018. 

Fund at a glance

Unit price (as at 30 September 2018): $1.2739

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 or the product disclosure statement

Fund objective and strategy

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

Fund returns

 Annualised total since inception1 Month3 Months1 Year
Fund 11.87% -0.94% -0.22% 12.30%

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 BHP Billiton Limited 9.79%
2 National Australia Bank Limited 5.99%
3 Commonwealth Bank of Australia Limited 5.86%
4 Telstra Corporation Limited 5.23%
5 ANZ Cash Deposit 5.14%
6 Woodside Petroleum Limited 4.97%
7 Macquarie Group Limited 4.71%
8 Australia and New Zealand Banking Group Limited 4.45%
9 Woolworths Limited 4.40%
10 Incitec Pivot Limited 4.26%

The top 10 investments make up 54.80% of the fund.

Manager's comments

Market Commentary

It has been a choppy quarter for mining stocks, one of the fund’s preferred sector exposures. Although we believe that global growth is robust, rising trade tensions have unsettled investors and stocks levered to international dynamics have suffered. More positively, late in the period, we saw investors appear to adopt a more relaxed view of the problem and this was positive for the fund's exposures to BHP Billiton and Rio Tinto. In contrast, investors appear less optimistic about Australian banking stocks. The release of a major inquiry into the sector has generated rather negative headlines and sentiment remains firmly against banking heavyweights Westpac and ANZ which are exposures the fund has. Nonetheless, it was notable to us that the banking sector, in general, rebounded following recent financial reporting results, a reflection of better-than-forecast dividends, in our opinion.    

Portfolio Positioning

For some time the Australian equity market has operated on two speeds: slow for domestically oriented companies and a slightly higher speed for those with offshore earnings; the fund has a small number of exposures to the former and a larger amount of exposure to companies with leverage to international dynamics. As long as the global economy remains healthy this preference will continue. At the same time, it is fortunate that the Australian economy is in reasonable shape, here we note constructive business and consumer sentiment surveys. In addition, the Australian Reserve Bank left interest rates unchanged at 1.5% in September, which was expected by us, as was the positive tone of the bank’s commentary, confirming our thinking to continue to hold the fund’s domestically orientated exposure to Telstra and Woolworths. Less optimistically, geopolitical uncertainties in the middle-east remain a concern to us. The fund’s exposures to Oil Search and Woodside are a hedge against heightened tensions in the area. Lastly, the fund retains a firmly underweight exposure the major banks but to a lesser degree than was the case in previous quarters.


Looking ahead to the forthcoming quarter, the fund’s investment exposures in mining and energy will remain in place. The US economy is performing extremely well and growth has driven US stock markets to all time high levels. Although we believe a correction is inevitable at some stage, for now we expect the golden weather to continue. 

We actively manage the fund’s foreign currency exposures. As at 30 September 2018, these exposures represented 94.86% of the value of the fund and were unhedged.


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.