Summer Australian Equities
Summer Australian Equities fund performance summary as at 31 July 2024.
Fund at a glance
Unit price (as at 31 July 2024): $1.9848
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% | 8.19% | 4.35% | 5.31% | 13.76% | 8.63% |
| 17.50% | 8.57% | 4.35% | 5.38% | 14.17% | 9.04% |
| 10.50% | 8.82% | 4.34% | 5.42% | 14.45% | 9.32% |
^ 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
The top 10 investments make up 44.22% of the fund.
Manager's Commentary
What happened in the markets that you invest in?
The Australian equity market rose 4.19% in July, led by the Consumer Discretionary sector and Real Estate, which rose 9.09% and 6.83% respectively. The big macro news for the month was release of the June quarter CPI which came in at 3.8% YoY, which was in-line with market expectations. The RBAs preferred measure of ‘trimmed mean’ inflation came in a whisker below market expectations, which drove a strong reaction from interest rate markets as traders unwound bets of another RBA hike. The market now sees the current cash rate of 4.35% as the peak of the cycle.
How did your portfolio perform?
Summer Australian Equities delivered a return net of fees and before tax of 4.33% for the month ending 31 July 2024.
For the 12 months to the end of July the Summer Australian Equities fund delivered a return net of fees and before tax of 14.86%.
Key positive contributors to performance were our overweight positions in financial software company Iress and mining services provider Emeco Holdings. Iress provided a pre-earnings update with guidance well above analyst forecasts which drove earnings and valuation upgrades. Emeco Holdings performed well on little news; as a small cap stock its share price can be heavily influenced by the market’s risk sentiment which was positive in July.
Key negative contributors to performance were our overweight positions in diversified mining company South32 and private hospital operator Ramsay Healthcare. South 32 is materially exposed to Aluminium and Nickel, with both commodities seeing sharp price declines during the month. The company also announced a large $831m impairment of its Worsley Alumina project after a negative outcome from the Western Australian regulators environmental review. Ramsay Healthcare underperformed after its troublesome French business Ramsay Santé reported earnings slightly below analyst expectations.
We actively manage the fund’s foreign currency exposures. As of 31 July 2024, these exposures represented around 98% of the value of the fund. After allowing for foreign currency hedges in place, approximately 54% of the value of the fund was unhedged and exposed to foreign currency risk.
What are we thinking about the future?
Our view on the Australian consumer remains positive. With the chances of a rate hike now slim, continued low unemployment and meaningful tax cuts flowing through, the chances of a recession appear quite low compared with other countries. This suggests that sharp declines in discretionary spending and credit quality remain unlikely, which supports the outlook for earnings across consumer stocks and lenders heading into the August reporting season. Despite new stimulus efforts, economic activity in China has failed to gain momentum which will likely drag on commodity prices and profitability across the Australian mining sector.
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.
