Summer Australian Equities

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Summer Australian Equities fund performance summary as at 31 December 2017. 

Fund at a glance

Unit price (as at 31 December 2017): $1.2227

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

 Annualised total since inception1 Month3 Months1 Year
Fund 16.38% 1.44% 8.53% 18.24%

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 8.51%
2 BHP Billiton Limited 7.99%
3 Westpac Banking Corporation  7.88%
4 Rio Tinto Limited 4.00%
5 ANZ Cash Deposit 3.95%
6 National Australia Bank Limited 3.93%
7 Woolworths Limited 3.90%
8 Australia and New Zealand Banking Group Limited 3.73%
9 AGL Energy Limited 3.57%
10 Macquarie Group Limited 3.47%

The top 10 investments make up 50.93% of the fund.

Manager's comments

Fund Performance

Summer Australian Equities delivered returns of 1.44% for the month, 8.53% for the three months to December and 18.24% for the year.

Market Commentary

The December quarter was a positive one for the Australian equity market. The S&P/ ASX200 (Gross Index) delivered a return of 8.99% in New Zealand dollar terms, lifting the 2017 calendar return for the market to 18.32%. 2017 was clearly a much improved year for the Australian equity market which finished at a five-year high in local currency terms. Although we believe that the Australian economy continues to display mixed messages, a number of large equity market sectors recovered strongly. Most importantly, the banking and resource sectors rebounded.

2017 was also notable for the fact that Australian economic growth is now less reliant on the Chinese economy. China remains a very important market for Australian resources but domestic infrastructure investment and the services sector have become relatively more important contributors to growth. At the same time, the Australian dollar has also declined. This has benefitted listed companies with offshore earnings. Given this, it is understandable that the Energy and Materials sectors were amongst the best performers in 2017.

Portfolio Positioning

The fund strategy in the past year has been to lift exposure to resource and energy companies – businesses with good leverage to global activity levels. The international economy has not seen a period of co-ordinated growth since prior to the Global Financial Crisis and this should give investors a great deal of confidence. For example, the price of copper, one of the most widely used industrial metals, finished 2017 at a four-year high. At the same time, oil prices remain well supported with demand growth expected to outstrip supply growth in 2018. Exposure to companies such as BHP Billiton, RIO Tinto, Oil Search and Woodside Petroleum remain important components of the portfolio on account of their leverage to global growth. Finally, the fund has also added industrial exposures with offshore earnings. Although we believe that the Australian economy continues to perform reasonably well, growth in offshore economies has generally been higher, a dynamic that a number of locally listed stocks are exposed to.   


Looking ahead, we believe that investors should be optimistic that the present momentum will continue into 2018. That said, we expect that interest rates in the United States will rise this year and liquidity support will fall as central banks take a long awaited chance to normalise monetary policy. Doing so will raise the chance of a miscalculation. The outlook for 2018 looks good but a correction late in the year seems a plausible outcome. For now the current strategy will remain in place but towards the middle of this year, a more defensive approach seems likely to be implemented.    


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.