Summer Balanced Selection
Summer Balanced Selection fund performance summary as at 30 June 2024.
Fund at a glance
Unit price (as at 30 June 2024): $1.5118
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% | 4.97% | 0.82% | -0.84% | 6.26% | 1.19% |
| 17.50% | 5.26% | 0.86% | -0.74% | 6.76% | 1.39% |
| 10.50% | 5.46% | 0.89% | -0.68% | 7.10% | 1.52% |
^ 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 38.96% of the fund.
Manager's Commentary
What happened in the markets that you invest in?
June was a strong month for fixed interest returns. After three or four months of higher than expected inflation numbers, May and June saw many countries report falling inflation and weaker growth expectations.
Global equity markets were driven higher once again by the US, and particularly the technology sector. Other regional markets were more mixed. France fell heavily on the news of an unexpected snap election; Australia performed solidly whilst New Zealand fell on yet more signs of economic weakness.
The NZ listed property market, which normally performs well when interest rates fall, had a poor month. Rental growth rates are slowing with the weakening economy and dividend growth has stalled as higher interest costs and new taxes impact earnings.
The NZ dollar, relevant for our portfolios with unhedged foreign currency exposures, fell -0.8% against the US dollar, and -1.2% against the Australian dollar.
For further commentary on each asset class in the Summer Balanced Selection, refer to the relevant single-asset class funds.
How did your portfolio perform?
The Summer Balanced selection delivered a return net of fees and before tax of 0.93% for June. For the 12 months to the end of June the fund delivered a return net of fees and before tax of 7.60%.
Our Listed Property and Global Equities Managers bettered their market indices during the month, whilst cash, Australian equities and fixed interest performed in line. Our NZ equities fund lagged its market index during the month.
We actively manage the fund’s foreign currency exposures. As at 30 June 2024, these exposures represented about 37% of the value of the fund. After allowing for foreign currency hedges in place, around 19% of the value of the fund was unhedged and exposed to foreign currency risk.
What are we thinking about the future?
Inflation is falling and slowing economic growth should support the portfolio’s current position of holding more than its usual share of fixed interest investments. We continue to see fixed interest as attractively valued, both in its own right and relative to the value of most equity markets.
Global equity markets continue to deliver attractive returns, dominated by robust returns from the huge technology leaders in the US. Your portfolio, however, remains modestly underweight global equities as we see risks around valuation in the US. Earnings growth forecasts are running well ahead of expected economic growth. The next earnings season starts in July, and we expect solid results, but more cautious outlook statements from the companies reporting.
We think New Zealand remains a laggard as high interest rates have stalled the growth in our economy.
In early July we completed the move to our new long-term asset allocations. As we communicated to you in April, we have increased our exposure to global equities and fixed interest, funded by lowering our allocation to NZ and Australian asset classes. While we continue to tactically underweight global equities, we think long-term prospects remain positive, and are attracted to the diversification and liquidity on offer in those markets.
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.
