Summer Australian Equities

Summer Australian Equities fund performance summary as at 30 June 2021. 

Fund at a glance

Unit price (as at 30 June 2021): $1.5069

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% 8.16% 2.56% 6.29% 23.25% 4.98%
17.50% 8.51% 2.53% 6.37% 23.56% 5.31%
10.50% 8.74% 2.50% 6.42% 23.76% 5.53%

 ^ Annualised

Fund returns are calculated net of fund charges, tradi8ng expenses and accrued tax for a New Zealand resident individual paying tax at the Prescribed Investor Rate identified above. 

Top 10 investments

  Asset name % of fund net assets
1 CSL Limited 7.52%
2 BHP Group Limited 5.57%
3 ANZ transactional bank account 5.29%
4 Westpac Banking Corporation Ltd 5.20%
5 Commonwealth Bank of Australia Limited 4.37%
6 Australia and New Zealand Banking Group Limited 3.12%
7 National Australia Bank Ltd 2.95%
8 Telstra Corp 2.62%
9 Rio Tinto Ltd 2.51%
10 Downer EDI Limited 2.38%

The top 10 investments make up 41.53% of the fund.

Manager's Commentary

Market Commentary

The Australian Equities market delivered very strong returns over the June quarter, with technology, telecommunication, and consumer discretionary stocks outperforming, and utility and energy stocks underperforming. Australia’s economic recovery has been quicker and stronger than previously expected and has outperformed most major advanced economies, driven in part by continuing elevated commodity prices.  The unemployment rate continues to fall and more people are in work than before the pandemic.  There are signs inflation is building (albeit likely to lag New Zealand).  Despite this, the RBA continues with its dovish tone sticking to its manta of “unlikely to raise interest rates until 2024”.  We remain cautious around the impact of rolling lockdowns on the economy due to COVID flare ups.

Portfolio Performance

Summer Australian Equities delivered a return of 6.29% for the June quarter. 

Key contributors to outperformance over the quarter were overweight exposures in Iress (up on takeover speculation), Viva Energy, Smartgroup, Altium (up on a takeover bid) and Senex Energy. Major detractors to performance included underweight exposures in Commonwealth Bank of Australia (our preferred exposure is Westpac), and Afterpay along with overweight exposures in a2 Milk (which has rebounded strongly in July) and Service Stream.


Broadly speaking we have positioned the Summer Australian Equities to take advantage of four key themes. The first is for inflation and higher interest rates.  Rates have likely bottomed this cycle, and we expect these to continue to rise over the medium term.  This supports being overweight financials and industrials, and underweight bond proxies and growth names with long-dated cashflows. 

Our second theme is for a continued V shaped economic recovery.  Unprecedented fiscal & monetary stimulus have delivered labour and housing outcomes far exceeding initial expectations. To capitalise on this momentum we have lifted allocations to housing, construction, civil and credit exposed names.

Our third theme is for sustained strong commodity prices.  We have seen a broad rally in global commodity prices, which supports our current positions.  Whilst current holdings have done well they are still cheap versus the market average and offer very attractive dividend yields.  Most resource stocks have rallied but mining services companies have lagged. We expect to see sector capital expenditure pipelines expand given improved earnings and project economics, supporting the outlook for mining services companies.

Our last theme is economic reopening.  Some COVID recovery plays have lagged the rally. The fund is positioned to benefit from their earnings recovery over the medium term.  However given uncertainty around international travel we maintain a partial barbell approach, continuing to hold COVID beneficiaries still presenting attractive value.

We actively manage the fund’s foreign currency exposures. As at 30 June 2021, the fund’s foreign currency exposures represented 94.71% of the value of the fund. After allowing for foreign currency hedges in place, approximately 63.82% 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.