Summer Australian Equities

Summer Australian Equities fund performance update as at 31 August 2017. 

Fund at a glance

Unit price (as at 31 August 2017): $1.1444

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 13.60% 3.50% 5.69% 6.27%

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 Limited 8.48%
2 Westpac Banking Corporation  8.01%
3 BHP Billiton Limited 7.39%
4 National Australia Bank Limited 4.77%
5 Australia and New Zealand Banking Group Limited 4.53%
6 Woolworths Limited 3.38%
7 Aristocrat Leisure Limited 3.25%
8 Rio Tinto Limited 3.15%
9 Brambles Limited 2.98%
10 Boral Limited 2.84%

The top 10 investments make up 48.78% of the fund.

Manager's comments

Summer Australian Equities delivered a return of 3.50% for August.

August was a month dominated by profit reports.

The results posted by Lendlease, Transurban, ANZ and National Australia Bank were in line with our expectations, while AGL Energy, Woolworths, Janus Henderson and Qantas delivered better results than we expected.

Exposure to James Hardie provided the fund’s most disappointing result. As a rule, the resource sector delivered results that were better than forecast, a reflection of stronger global growth, while insurance and telecommunications were the most disappointing sectors, in our view.

Global growth continues to deliver upside surprises and we consider stocks such as BHP and Rio Tinto to be well placed to benefit.

August was also a busy month for corporate news. Commonwealth Bank of Australia was marked down sharply following an announcement by the Australian government that it will be investigated regarding possible breaches of money laundering legislation. The company’s CEO has also announced he will be leaving the company. Neither of these developments are positive and the stock price has been marked down sharply in recent weeks. 

In a more positive announcement, Aristocrat Leisure has announced a US$500m acquisition of social gaming company, Plarium Global. The purchase, which will provide the company with a new growth option, was generally well received by investors. Aristocrat has been a positive exposure for the fund; we expect further upside.  

Origin Energy was also in the news this month. The company posted what we see as a respectable operating result for full-year 2017. However, the company announced a very heavy write-down in the value of the APLNG gas project which drove the company to a full year loss of AU$2.2 billion. The reappraisal reflects lower long-term oil price assumptions.

Finally, the Australian equity market continues to reverberate to concerns regarding the intention of Amazon. There seems little doubt the internet giant will soon appear in Australia but investors remain uncertain as to the long-term impact this will have. The fund has relatively little exposure to areas in which Amazon is interested but we will monitor the issue closely.


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.