Summer Conservative Selection
Summer Conservative Selection fund performance summary as at 30 June 2024.
Fund at a glance
Unit price (as at 30 June): $1.1503
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% | 2.33% | 0.61% | -0.32% | 4.75% | 0.53% |
| 17.50% | 2.56% | 0.67% | -0.24% | 5.31% | 0.68% |
| 10.50% | 2.71% | 0.72% | -0.18% | 5.68% | 0.79% |
^ 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 | 24.82% |
| 2 | ANZ transactional bank account | 3.99% |
| 3 | Intermede Global Equity Fund | 3.92% |
| 4 | New Zealand Government 3% 20/04/2029 | 2.68% |
| 5 | New Zealand Government 4.50% 15/04/2027 | 2.25% |
| 6 | New Zealand Government 15/05/2028 0.25% | 2.09% |
| 7 | New Zealand Government 14/04/2033 3.5% | 2.07% |
| 8 | New Zealand Government 4.50% 15/05/2030 | 2.02% |
| 9 | Westpac New Zealand 1.439% 24/02/2026 | 1.99% |
| 10 | New Zealand Government 1.5% 15/05/2031 | 1.47% |
The top 10 investments make up 47.30% of the fund.
Manager's Commentary
What happened in the markets 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. The Australian equity market 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 international fixed interest segment of the Conservative selection is hedged to the NZ dollar. The fund’s currency exposure comes from investing in Australian equities, either directly or via the Australian Equities and the Listed Property funds. The NZ dollar fell -1.2% against the Australian dollar during June.
For further commentary on each asset class in the Conservative selection, refer to the relevant single-asset class funds.
How did your portfolio perform?
The Summer Conservative selection delivered a return net of fees and before tax of 0.78% for June. For the 12 months to the end of June, the fund delivered a return net of fees and before tax of 6.25%.
Of the assets classes within the Summer Conservative Selection the Listed Property Fund beat its market index while all other assets classes met or were below their market index.
Almost 40% of the fund is invested in directly held Australasian equities. Holdings in IAG Group and Macquarie Group added to performance. IAG rallied strongly after securing a favourable reinsurance deal with Berkshire Hathaway. Holdings in KMD Brands, Sky City, and Viva Energy detracted from performance. Viva Energy sold-off on the back of weaker margin expectations for their refining operations and potentially softer convenience store sales as consumers tighten their belts.
We actively manage the fund’s foreign currency exposures. As at 30 June 2024, these exposures represented about 18% of the value of the fund. After allowing for foreign currency hedges in place, around 9% of the value of the fund was unhedged and exposed to foreign currency risk.
We calculate the running yield of the securities held within the Conservative selection as currently 5.27%. We recently adjusted our distribution to account for this lower running yield driven by fixed interest capital appreciation and lower dividends from listed equities.
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.
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 fixed interest, funded by lowering our allocation to NZ and Australian asset classes.
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.
