Summer Conservative Selection
Summer Conservative Selection fund performance summary as at 31 May 2025.
Fund at a glance
Unit price (as at 31 May 2025): $1.2149
Date the fund started: 8 April 2019
For information on fees, see our Fees page.
For more information on the Summer Conservative 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 Conservative Selection page.
Fund objective and strategy
See the Summer Conservative 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% | 2.73% | 1.16% | 0.03% | 5.26% | 3.83% |
| 17.50% | 3.00% | 1.15% | 0.10% | 5.75% | 4.22% |
| 10.50% | 3.17% | 1.15% | 0.14% | 6.07% | 4.47% |
^ 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
| Asset name | % of fund net assets | |
| 1 | Hunter Global Fixed interest Fund | 23.35% |
| 2 | ANZ transactional bank account | 6.09% |
| 3 | Intermede Global Equity Fund | 3.73% |
| 4 | New Zealand Government 4.50% 15/05/2030 | 2.61% |
| 5 | New Zealand Government 1.5% 15/05/2031 | 2.55% |
| 6 | New Zealand Government 15/05/2028 0.25% | 2.12% |
| 7 | New Zealand Government 14/04/2033 3.5% | 2.02% |
| 8 | New Zealand Government 3% 20/04/2029 | 1.91% |
| 9 | New Zealand Government 15/05/2032 2.00% | 1.85% |
| 10 | New Zealand Government 4.50% 15/04/2027 | 1.69% |
The top 10 investments make up 47.92% of the fund.
Manager's Commentary
How did your portfolio perform?
The Summer Conservative Selection (the fund) delivered a return net of fees and before tax of 1.14% for the month of May. For the 12 months to the end of May the fund delivered a return net of fees and before tax of 6.57%.
The NZ Equities fund, New Zealand and Global Fixed Interest funds and the Enhanced Cash fund performed in-line with or better than their benchmarks, whilst all others lagged. For details on the Conservative Fund's single asset class funds, see the relevant fund commentary.
We actively manage the fund’s foreign currency exposures associated with Global, Australasian and listed property equities and hedge the international fixed interest segment of the fund. The New Zealand dollar rose 0.61% against the US dollar and rose just 0.02% against the Australian dollar during the month.
What happened in the markets you invest in?
Tariff uncertainty persisted in May. China saw some relief through reduced and paused tariffs, while provisional trade deals were reached with countries like the UK and some new, product-specific tariffs were introduced on steel and aluminium. Legal challenges to these measures are unlikely to succeed, in our view, as the US government has multiple avenues for implementation. Trade tensions remain a key market driver, overshadowing the marginal progress in the Israel and Ukraine conflicts.
Economic data for April and May has been slightly stronger than expected. Corporate earnings have generally outperformed, and inflation has been more persistent, putting upward pressure on interest rates. In New Zealand, economic conditions remain weak, but inflation has levelled off, delaying the anticipated timing of further RBNZ rate cuts. Australia continues to use its strong fiscal position to cushion soft consumer demand and global trade pressures.
While sentiment indicators point to possible weakness in equities, actual economic growth remains steady. As a result, markets are treating cautious sentiment as a reflection of uncertainty rather than a sign of slowdown. In bond markets, rising concerns over the growing US fiscal deficit have lifted yields, as investors expect increased government issuance will require higher rates to attract demand.
What are we thinking about the future?
Equity markets approached year-to-date highs in May. From a broader perspective, the rebound from April lows appears disconnected from underlying fundamentals in our view. The shift away from global free trade, driven by escalating trade tensions, will have meaningful consequences for corporate earnings and inflation—risks that are not currently reflected in market valuations.
US equities, in particular, now price in annual earnings growth of 16% over the next five years. This is more optimistic than the post-GFC period, when earnings were rebounding from depressed levels, and even exceeds expectations during the peak of the Covid stimulus era, when interest rates were near zero.
We remain patient and committed to our portfolio positioning, favouring New Zealand equities and listed property over Australian equities based on relative valuations. In fixed interest, we retain a neutral stance as upward pressure from inflation is balanced by weaker growth prospects. We continue to underweight cash, given the ongoing decline in short-term New Zealand interest rates.
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.
