Summer Australian Equities

Summer Australian Equities fund performance update as at 28 February 2017. 

Fund at a glance

Unit price (as at 28 February 2017): $1.0720

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 returns

 Total since inception1 Month3 Months
Fund 6.90% 5.28% 7.97%

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%). 

Fund objective and strategy

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

Manager's comments

The broader Australian equity market returned around 5% in February, assisted by the double tailwinds of positive company performance and a declining New Zealand dollar versus the Australian dollar.

In our view, around half of all reported company results were at or above consensus forecasts, a good result given the mixed state of the Australian economy.

Summer Australian Equities had a positive month delivering returns of 5.28%

After what has been a torrid few years for the resource sector, it is pleasing to note that benchmark stocks such as Rio Tinto and Bluescope Steel announced good results in February. In a sign of confidence, both companies announced share buy backs (A$500m and A$150m respectively).

Other portfolio exposures to post positive announcements this month included Transurban, Super Retail, Orora, CSL and ANZ. The last of these was much anticipated as it provided an excellent insight as to trading conditions in the bank sector. ANZ’s cash profits came in substantially above the wider market forecasts and it was particularly positive to note that revenue growth (+4%) exceeded costs (-1%) by a wide margin as well as a stabilisation in provisioning.

Commonwealth Bank and NAB also posted good results this month but ANZ was the comparative outperformer versus its major banking peers, in our view. Revenue growth in the sector is subdued at present, meaning that cost control is extremely important. NAB disappointed in this respect.

As tends to be the case not all company results were positive. On the downside, Brambles delivered a poor interim result in relation to our expectations and the fund’s exposure to this stock is under review.

James Hardie was another United States focused company to disappoint. The company missed earnings targets and lowered guidance with margin pressures noted as the major reason. 



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.