Summer Global Fixed Interest

Summer Global Fixed Interest fund performance summary as at 30 September 2020. 

Fund at a glance

Unit price (as at 30 September 2020): $1.1245

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

 Annualised total since inception1 Month3 Months1 Year3 Years^
Fund 2.76% 0.33% 1.26% 3.50% 3.12%

Fund returns are calculated net of fund charges, trading expenses and accrued tax for a New Zealand resident individual paying tax at the highest Prescribed Investor Rate (28%). 
^ Annualised

Top 10 investments 

  Asset name % of fund net assets
1 ANZ transactional bank account 6.37%
2 U S Treasury Bills 0% 3/12/20 3.23%
3 QNB Finance Limited 1.9001% 12/02/2022 FRN 1.59%
4 BNP Paribas Account (USD) 1.45%
5 China Development Bank 4.04% 10/04/2027 1.43%
6 Kingdom of Spain (Government) 1.25% 31/10/2030 1.29%
7 Government of Japan 0.7% 20/12/2048 1.29%
8 China Development Bank 4.24% 24/08/2027 1.02%
9 U S Treasury Inflate Prot Bd 0.5% 51/01/2028 0.97%
10 U S Treasury Note 2.8750% 30/04/2025 0.93%

The top 10 investments make up 19.56% of the fund.

Manager's Commentary

Market Commentary

The September quarter was a relatively straight-forward affair for global fixed interest investors.

Indeed, returns for Summer Global Fixed Interest were positive for the September quarter; the March quarter market dysfunction and dislocation seems a life-time ago.

Portfolio Positioning

We close September with the fund’s exposures broadly approximating its target asset allocation of cash 5%, New Zealand Fixed Interest 15% and International Fixed Interest 80%.

Our global bond exposure is via an investment in the NZX listed Global Bond Fund ETF, which is generally hedged to the New Zealand dollar and actively managed by PIMCO.

Some of the positive contributors to the performance of that portion of Summer Global Fixed Interest that is actively managed by PIMCO were investment exposures to: 

1. US securitized credit, such as non-agency mortgage backed securities.

2. Peripheral European government bonds.

3. Securities of financial institutions.

PIMCO will continue with their cautious view on interest rate risk and corporate (non-Government) credit which is reflected in a portfolio holding of diversified and preferred securities.

Outlook 

We will continue with the strategy of broadly matching the fund’s actual investment mix with its target asset allocation of cash 5%, New Zealand Fixed Interest 15% and International Fixed Interest 80%, and continue to back PIMCO to manage through the current market volatility.

Foreign currency exposures associated with international fixed interest are hedged to the New Zealand dollar. As at 30 September 2020, these exposures represented 87.46% of the value of the fund and were hedged.

 

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.