Summer Balanced Selection
Summer Balanced Selection fund performance summary as at 30 September 2025.
Fund at a glance
Unit price (as at 30 September 2025): $1.7065
Date the fund started: 19 September 2016
For information on fees, see our Fees page.
For more information on the Summer Balanced Selection fund, read the latest quarterly fund update and the product disclosure statement.
For the current tactical asset allocation and date of most recent review, please go to the Summer Balanced Selection page.
Fund objective and strategy
See the Summer Balanced Selection 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% | 5.58% | 1.78% | 4.66% | 7.98% | 8.67% |
| 17.50% | 5.88% | 1.82% | 4.70% | 8.16% | 9.12% |
| 10.50% | 6.09% | 1.85% | 4.73% | 8.27% | 9.42% |
^ 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 37.44% of the fund.
Manager's Commentary
How did your portfolio perform?
The Summer Balanced Selection (the fund) delivered a return net of fees and before tax of 1.88% for the month of September. For the 12 months to the end of September, the fund delivered a return net of fees and before tax of 8.45%.
The New Zealand equities, New Zealand fixed interest and cash funds met or beat their respective benchmarks while other asset classes underperformed versus their benchmarks.
What happened in the markets that you invest in?
Broadly speaking, financial market activity was dominated by central banks in September. Global equities continued its series of incremental gains over the month as the US Federal Reserve (the FED) prioritised low unemployment over inflation. The FED’s 0.25% cut in September was a controversial affair with President Trump’s recent appointment to the FED dissenting and instead opting for a 0.50% cut. Notwithstanding the politics, the market is now comfortable that monetary settings are moving from tight to neutral. However, we caution that further moves lower are likely to be gradual as the FED Chair balances the dual mandate of employment and inflation, rather than being swayed by political imperative.
New Zealand’s June quarter GDP result was significant, showing a -0.90% drop that quickly recalibrated market expectations for more official cash rate (OCR) cuts before the year end. The RBNZ also re-forecast the terminal rate to around 2.25% to 2.50% by year-end. Not surprisingly, the interest rate sensitive New Zealand equity market, and in particular the listed property sector, responded with healthy positive returns for the month. In Australia, stronger than expected inflation data led to some market commentators suggesting that recent monetary policy easing may be over. Australian equity returns, while positive, were the weakest of the growth asset classes that we follow.
It was business-as-usual for international and New Zealand fixed interest, along with cash. All three asset classes continued to benefit from investment opportunities presented by current global monetary policy settings. Simply put, the recent run of delivering positive monthly performance continued over September.
For details on the Balanced Fund's single asset class funds, see the relevant fund commentary.
We actively manage the fund’s foreign currency exposures and hedge the international fixed interest segment of the fund. The New Zealand dollar fell –1.59% against the US dollar and fell –2.82% against the Australian dollar.
What are we thinking about the future?
Tactically, we continue the fund’s overweights to New Zealand equities and listed property, balanced by underweights to Global and Australian equities.
We continue to believe that New Zealand’s current monetary policy settings favour our domestic equity and listed property markets. We are also encouraged by companies’ balance sheet health, at the end of what we believe has been a very traumatic down cycle in economic performance. Renewed talk of the “rockstar” economy could be premature, but maybe, just maybe, the RBNZ’s GDP Nowcast predications of a 0.7% rebound in the September quarter GDP could be a sign of better times ahead!
This is in a contrast to our thinking on international and Australian equity markets. The widely expected US Government shutdown, adding yet another bout of uncertainty, and stretched US equity valuations validates our Global equities underweight. We also believe that the Reserve Bank of Australia is most likely done, or close to done, in cutting its official cash rate any further.
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.
