Summer Balanced Selection
Summer Balanced Selection fund performance summary as at 31 July 2024.
Fund at a glance
Unit price (as at 31 July 2024): $1.5547
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% | 5.27% | 2.68% | 3.12% | 7.92% | 2.18% |
| 17.50% | 5.57% | 2.74% | 3.33% | 8.46% | 2.39% |
| 10.50% | 5.77% | 2.79% | 3.48% | 8.82% | 2.53% |
^ 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 42.43% of the fund.
Manager's Commentary
What happened in the markets that you invest in?
Global and NZ Fixed Interest markets racked up a second month of very strong gains in July. Economic growth appears to be stalling and recent inflation numbers suggest many central banks will see inflation return into their target ranges by year end. Both of these outcomes support fixed interest market returns.
NZ and Australian equity markets outperformed their Global peers. In NZ’s case it was the signal of lower rates that will eventually stimulate an economic recovery that drove the market. In other markets, growth is currently stronger, but that strength appears to be falling.
The NZ listed property market also lifted strongly. A decline in market interest offers valuation support in the physical property market, and lowers the risk that some companies may need to undertake dilutive equity raisings.
The NZ dollar, relevant for our portfolios with unhedged foreign currency exposures, fell -2.5% against the US dollar, and –0.3% against the Australian dollar.
For further commentary on each asset class in the 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 2.85% for July.
For the 12 months to the end of July the fund delivered a return net of fees and before tax of 9.36%.
All the funds that make up the Balanced Selection, except the Global Equities fund, performed in line with or slightly ahead of their market indices.
We actively manage the fund’s foreign currency exposures. As of 31 July 2024, these exposures represented 37% of the value of the fund. After allowing for foreign currency hedges in place, approximately 16% of the value of the fund was unhedged and exposed to foreign currency risk.
What are we thinking about the future?
Of the global economists we subscribe to, all but one is predicting a gradual decline in economic growth for the US economy with falling inflation and a stable employment market. Recent data releases have supported the falling inflation story, but growth in manufacturing has disappointed and unemployment is rising faster than most expected. Should a recession eventuate, company profit expectations for global shares could fall materially. NZ was back in recession in the June quarter we think, but this has been reflected in earnings forecasts and market returns for some time.
The Investment Committee met in early August and reduced its allocation to fixed interest investments on the back of strong returns over the last three months. We used this money to add to the listed property sector, which whilst having low earnings growth, should deliver strong returns as interest rates fall and discounts to asset backing decline.
After these moves, the portfolios now have modest overweight positions in fixed interest and listed property, and modest underweights in global equities, relative to their long-term target allocations.
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.
