Summer Balanced Selection fund performance summary as at 31 December 2024.
Unit price (as at 31 December 2024): $1.5959
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.
See the Summer Balanced Selection page for the Summary of investment objective and strategy.
PIR | Total since inception (annualised) | 1 Month | 3 Month | 1 Year | 3 Years^ |
28% | 5.31% | -0.10% | 1.50% | 8.58% | 2.56% |
17.50% | 5.61% | -0.17% | 1.40% | 8.87% | 2.80% |
10.50% | 5.80% | -0.21% | 1.32% | 9.07% | 2.96% |
^ 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.
The top 10 investments make up 40.24% of the fund.
The Summer Balanced Selection (the fund) delivered a return net of fees and before tax of -0.28% for the month of December. For the 12 months to the end of December the fund delivered a return net of fees and before tax of 9.36%.
Of the funds utilised within the fund, all except the Global Equities Fund outperformed their asset class benchmarks. For more information on portfolio components refer to the relevant single asset class fund commentary.
Foreign currency exposure for global and Australian equities is actively managed, while global bonds are fully hedged. At year-end, foreign currency exposure made up about 35% of the fund. After accounting for hedges, approximately 14% of the fund remained unhedged and subject to foreign currency risk. During December, the New Zealand dollar fell 5.29% against the US dollar and fell 0.35% against the Australian dollar.
US equity markets struggled in December while other regions showed mixed performance. New Zealand, Japan, and Europe posted gains, but the Australian market fell (in local currency terms). A weaker New Zealand dollar improved global returns when converted to local currency. The US Federal Reserve cut short-term interest rates by 0.25% but reduced expectations for future cuts. Although the US economy remains strong, high earnings expectations and rising interest rates could challenge company performance.
Higher US long-term interest rates did not flow through to the local market, with NZ interest rates moving lower over the month due to persistent economic weakness here. The Reserve Bank of New Zealand (RBNZ) now has more scope to keep cutting interest rates.
Upcoming political developments in the US, including potential trade tariffs, could affect markets. Political uncertainty is also notable in France, Canada, and South Korea.
Our outlook for the various asset classes remains unchanged. We anticipate decent returns in listed property and New Zealand equities but expect lower-than-average returns from international equities. Slower than expected economic growth in NZ has been offset by falling interest rates, which could support an eventual economic recovery here. While the US economy remains robust, current valuations already reflect this strength, in our view.
The divergence seen in local versus global bond markets supports our recent move to increase exposure to NZ fixed interest over global bonds.
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.