Summer Global Fixed Interest
Summer Global Fixed Interest fund performance summary as at 31 March 2024.
Fund at a glance
Unit price (as at 31 March 2024): $1.0974
Date the fund started: 19 September 2016
For information on fees, see our Fees page.
For more information on the Summer Global Fixed Interest fund read the latest quarterly fund update and the product disclosure statement.
Fund objective and strategy
See the Global Fixed Interest 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% | 1.01% | 1.03% | 0.37% | 3.36% | -0.99% |
| 17.50% | 1.36% | 1.18% | 0.43% | 3.95% | -0.72% |
| 10.50% | 1.59% | 1.28% | 0.46% | 4.34% | -0.54% |
^ 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.
Top 10 investments
| Asset name | % of fund net assets | |
| 1 | Hunter Global Fixed interest Fund | 99.21% |
| 2 | ANZ transactional bank account | 0.79% |
| 3 | ||
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The top ten investments make up 100.00% of the fund.
Manager's Commentary
What happened in the markets that you invest in?
March was a positive month for international fixed interest investors, in general.
Investors actively repositioned fixed interest exposures over the month, continuing to prepare for the conclusion of the multi-year tightening of monetary policy which had previously seen regulators around the world hike official cash rates in a synchronised attack on inflation.
How did your portfolio perform?
Summer Global Fixed Interest delivered a return of 1.43% for the month of March and for the 12 months to the end of March Summer Global Fixed Interest delivered a return of 4.93%.
Apart from an immaterial amount of directly held New Zealand dollar cash (typically 1% of the fund’s value) Summer Global Fixed Interest is fully invested in international fixed interest through its holdings of units in the Hunter Global Fixed Interest Fund (a multi-rate PIE fund), which is hedged to the New Zealand dollar. PIMCO Australia Pty is the investment manager.
What do we think is going to happen in the next few months?
While central banks will remain vigilant in their inflation fight the sustained multi-year tightening in monetary policy has done its job in reducing inflation; we think inflation will likely prove to be “sticky”, meaning, in our view, that term interest rates and bonds yields are likely to remain at attractive yields for some time yet
Indeed, PIMCO are well set, in our opinion, to play a long-game anticipating a “soft recession” which in general should be a good outcome for high quality bond portfolios. We estimate the fund’s gross yield-to-maturity to be around 5.501, a duration of close to 5.2 years2 and a weighted-average portfolio credit quality of AA-3.
1Gross yield to maturity is calculated as the weighted-average gross yield of all securities in the portfolio as at 31 March 2024, assuming that all amounts owed by the issuer will be received by the Fund and is based on PIMCO’s calculation methodology; excludes any taxes, fund charges, trading expenses or fees
2Duration is the weighted-average portfolio sensitivity to changes in value resulting from changes in the level of global wholesale interest rates
3Weighted-average portfolio credit quality is calculated by PIMCO and is the weighted-average credit rating of each security within the portfolio; where a security is not rated by an external agency, PIMCO will assign a credit rating
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.
