Summer Global Fixed Interest

Summer Global Fixed Interest fund performance update as at 30 April 2017. 

Fund at a glance

Unit price (as at 30 April 2017): $1.0058

Date the fund started: 19 September 2016

For information on fees, see our Fees page.

Further information can be found in the product disclosure statement

Fund objective and strategy

See the Global Fixed Interest page for the Summary of investment objective and strategy.

Fund returns

 Total since inception1 Month3 Months6 Months
Fund 0.46% 0.37% 1.18% 0.66%

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%). 

Top 10 investments

 

Asset name

% of fund net assets

1 Smartshares Exchange Traded Funds Global Bond Fund 19.84%
2 ANZ Cash Deposit 18.74%
3 NZ Local Government Funding Agency Ltd 15/12/2017 6.00% 8.42%
4 Transpower New Zealand Ltd 30/06/2022 4.30% 3.54%
5 Bank of New Zealand Subordinated Note 17/12/2025 5.314% 3.29%
6 NZ Local Government Funding Agency Ltd 15/04/2020 3.00% 2.99%
7 Westpac Cash Deposit 2.45%
8 ANZ Bank New Zealand Ltd 25/09/2020 4.03% 2.19%
9 Port of Tauranga Ltd Fixed Rate Note 29/10/2019 5.865% 2.17%
10 Sky City Entertainment Group Ltd 28/09/2022 4.65% 1.93%

The top 10 investments make up 65.56% of the fund.

Manager's comments

Summer Global Fixed Interest delivered a return of 0.37% for April.

We continue to opportunistically increase our investments in global bonds; we now have close to 20% of the portfolio invested in NZX Smartshares’ Global Bond Fund; an actively managed international fixed interest portfolio.

To quickly recap our global bond strategy; we believe investors will be better off if we allocate the investment management to a well- known and successful international fixed interest manager. On this basis, we have added to Summer Global Fixed Interest an exposure to NZX Smartshares actively managed Global Bond Fund, where the investment manager is PIMCO, which we assess as one of the most well-known and successful global bond managers currently available.

However, as we are still cautious on the direction of international interest rates and bond yields, in general, we have decided to retain the lion’s share of the fund's investments in New Zealand bonds and cash.

As always, we will continue with our watching brief and intend to allocate a greater share of the fund to NZX Smartshares Global Bond Fund, as and when we think it is appropriate.

Finally, we give the tick of approval to NZX Smartshares' Socially Responsible Investment Policy, which very closely resembles ours.

And remember, at the end of each quarter we will publish any securities held in the NZX Smartshares Global Fund that appear on the New Zealand Super Fund’s exclusion list. 

 

For more information on the Summer Global Fixed Interest fund, read the latest quarterly fund update.

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.