Summer Balanced Selection

Summer Balanced Selection fund performance summary as at 31 December 2021. 

Fund at a glance

Unit price (as at 31 December 2021): $1.4607

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% 6.92% 2.19% 1.21% 4.58% 9.01%
17.50% 7.24% 2.22% 1.19% 4.65% 9.33%
10.50% 7.46% 2.24% 1.17% 4.69% 9.54%

 ^ 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 5.00%
New Zealand fixed interest 29.00%
International fixed interest 6.00%
Total income assets 40.00%
New Zealand equities 12.50%
Australian equities 15.50%
Listed property 5.00%
International equities 27.00%
Total growth assets 60.00%
Total 100.00%

We have chosen the above tactical asset allocation for Summer Balanced Selection as at 8 October 2021. 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 Vanguard ESG US Stock ETF                12.11%
2 Vanguard ESG International Stock ETF     8.15%
3 ANZ transactional bank account 4.16%
4 Housing New Zealand 3.36% 12/06/2025 1.66%
5 New Zealand Local Government Funding Agency Ltd 14/04/2033 3.50% 1.59%
6 Fisher & Paykel Healthcare Corporation Limited 1.54%
7 CSL Limited 1.29%
8 GMT Bond Issuer Limited 23/06/2022 5.00% 1.19%
9 New Zealand Local Government Funding Agency Ltd 15/04/2027 4.50% 1.13%
10 Housing New Zealand 2.97% 12/06/2023 1.07%

The top 10 investments make up 33.89% of the fund.

Manager's Commentary

Market Commentary

The December quarter saw positive returns from our Australian and Global equities components whilst New Zealand delivered a smaller positive return. Our exposure to listed property also delivered a positive return. The economic recovery from the depths of the pandemic continues, although volatility has risen given emergence of the Omicron variant, higher than expected inflation and central banks starting to return to neutral settings. Interest rates had been lowered to highly stimulatory levels to help offset the economic effects of the pandemic.

Fixed interest returns were hit as interest rates drifted higher, particularly late in the quarter and into the New Year. New Zealand yields pushed much higher than their global counterparts, hurting bond valuations here. In our view, New Zealand fixed interest continues to offer more attractive returns than global fixed interest, and that is reflected in the funds tactical asset allocation.

With strong returns from equity markets generally, our cash holdings dragged slightly on performance. The Reserve Bank of New Zealand raised the official cash rate to 0.75% during the quarter, but it is still below the level prevailing prior to the pandemic.

The New Zealand dollar, relevant for our portfolios with unhedged foreign currency exposures, fell modestly against both the Australian and United States dollars respectively. This is despite the much stronger interest rates now available in New Zealand.

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


The economic expansion continued over the December quarter, but markets were surprised by the strength and persistency of inflation reports.  As a result many central banks, including New Zealand, the United Kingdom and the United States, are bringing forward the timelines for unwinding the emergency interest rate settings used at the height of the pandemic. 

As interest rates reset higher, fixed income returns will struggle. The average interest rate earned on the fund gradually rises through such periods as a partial offset. As such, we retain a preference for growth assets over income assets, relative to our long term target weightings between the two asset types.  Eventually higher interest rates will become a drag on the valuation of equities, and this is a key discussion point for the investment committee at each of its meetings.  The Investment Committee met again in early January and concluded the Summer Balanced Selection asset allocation settings remain appropriate.

Apart from the higher than anticipated inflation reports, the other key risk to emerge was the discovery of the Omicron variant of Covid-19. Recent data suggests it is very contagious, but not any more dangerous than Delta to those who have been vaccinated. More evidence is needed to confirm these findings.

As discussed in the November monthly update, we have recently reviewed our international equities offer and believe we can improve both the quality, and lower the volatility, of the fund by adding the breadth of resources and strategies of highly experienced independent global equity managers to our current in-house process. The appointment process continues and we expect to have the fund invested with the new managers during February, allocating money currently invested in two market index tracking ETFs

We are comfortable with our level of foreign currency hedging currently, with the New Zealand dollar trading slightly below our long run views against the United States dollar, but expensive against the Australian dollar.

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 December 2021, these exposures represented 42.82% of the value of the fund. After allowing for foreign currency hedges in place, approximately 25.64% 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.