Summer Balanced Selection

Summer Balanced Selection fund performance summary as at 31 May 2022. 

Fund at a glance

Unit price (as at 31 May 2022): $1.3549

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

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% 5.06% -1.49% -2.93% -4.00% 3.44%
17.50% 5.34% -1.45% -3.00% -4.08% 3.63%
10.50% 5.53% -1.43% -3.04% -4.14% 3.76%

 ^ 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. 

Tactical asset allocation

Summer Balanced Selection Allocated %
New Zealand cash 6.50%
New Zealand fixed interest 29.00%
International fixed interest 7.50%
Total income assets 43.00%
New Zealand equities 12.50%
Australian equities 14.50%
Listed property 5.00%
International equities 25.00%
Total growth assets 57.00%
Total 100.00%

We have chosen the above tactical asset allocation for Summer Balanced Selection as at 6 May 2022. This can move in line with market movements and we review the portfolio and adjust asset allocation accordingly. For the current tactical asset allocation and date of most recent review, please go to the Summer Balanced Selection page.

Top 10 investments 

  Asset name % of fund net assets
1 S&P500 E-Mini Future Jun22 4.32%
2 Vanguard ESG US Stock ETF                3.56%
3 Intermede Global Equity Fund 2.99%
4 ANZ transactional bank account 2.91%
5 Vanguard ESG International Stock ETF     2.55%
6 NZ Govt Inflation Ind Bond 20/09/25 1.69%
7 New Zealand Local Government Funding Agency Ltd 14/04/2033 3.50% 1.54%
8 Housing New Zealand 3.36% 12/06/2025 1.53%
9 STOXX EUROPE 600 Jun22 1.35%
10 Genesis Energy Limited Bonds 09/06/2047 5.70% 1.26%

The top 10 investments make up 23.70% of the fund.

Manager's Commentary

Market Commentary

The continued headwinds to economic growth from rising interest rates and cost inflation saw equity markets generally deliver negative returns over May.

As global growth faces headwinds from inflation and central banks raising short term rates, the market is increasingly thinking about the risk of a recession. If a recession does occur, longer term interest rates would probably need to fall, and hence the fixed interest market is now in a “tug of war” between high inflation and increased recession risk.

These continued headwinds to economic growth saw equity markets generally deliver negative returns over May. Our fixed interest and cash holdings were helpful to total returns but all the other asset classes delivered negative returns over the month.

The New Zealand dollar, relevant for our portfolios with unhedged foreign currency exposures, rose against the US dollar but fell against the Australian dollar.

For further commentary on each of the asset classes within the Summer Balanced Selection, please refer to the commentaries for each of the relevant single-asset class funds.

Portfolio Performance

Summer Balanced Selection delivered a return of -1.49% during May and for the 12 month period to date delivered a return of -4.00%.


The Ukrainian crisis appears far from resolved, with Russia’s European neighbours escalating the sanctions they have imposed on her. Chinese growth has been hit hard by the Omicron wave and related shut downs. The government there has announced stimulus to boost the economy, but it is expected to take some months to show up in economic activity.

Strong employment markets and some stored savings are the last two clear positives for economic growth. Consumer surveys, housing market activity, mortgage interest rates and inflation all point to an ebbing in economic growth, and eventually the profit growth of companies.

In early June our Asset Allocation committee met to discuss the recent moves in asset prices. At that meeting we lowered our expectations for near term economic growth as the headwinds discussed above continue to grow. Whilst none of the leading indicators we watch to warn of a recession are flashing red, they are mostly deteriorating towards that outcome. As a result we have moved the Summer Balanced Selections weightings between income and growth assets to neutral, having previously had a modest overweight to growth assets.

As announced in March, we are now well advanced in the process of funding the two new portfolio managers who are joining our existing global equities strategy. The objective is to improve the risk and return characteristics of the Summer Global Equities portfolio which is a component of Summer Balanced Selection. The transition will be completed in June.

Foreign currency exposures associated with international fixed interest are hedged to the New Zealand dollar. We actively manage the fund’s currency exposures associated with international and Australian equities, and listed property. As at 31 May 2022, these exposures represented 35.79% of the value of the fund. After allowing for foreign currency hedges in place, approximately 13.46% 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.