Summer Global Fixed Interest

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Summer Global Fixed Interest fund performance summary as at 31 October 2017. 

Fund at a glance

Unit price (as at 31 October 2017): $1.0249

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 Months1 Year
Fund 1.92% 0.20% 0.61% 1.45% 2.12%

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%). 

Top 10 investments

  Asset name % of fund net assets
1 ANZ Cash Deposit 8.88%
2 New Zealand Local Government Funding Agency Ltd 15/12/2017 6.00% 1.87%
3 Transpower New Zealand Ltd 30/06/2022 4.30% 1.76%
4 Bank of New Zealand Subordinated Note 17/12/2025 5.314% 1.48%
5 New Zealand Local Government Funding Agency Ltd 15/04/2020 3.00% 1.46%
6 BNP Paribas A/C (USD) 1.41%
7 Nykredit Realkredit AS 01/10/47 2.00% SF 1.40%
8  New Zealand Local Government Funding Agency Ltd 15/04/2023 5.50% 1.31%
9  New Zealand Local Government Funding Agency Ltd 15/05/2021 6.00% 1.19%
10  ANZ Bank New Zealand Ltd 25/09/2020 4.03% 1.08%

The top 10 investments make up 21.84% of the fund.

Manager's comments

Summer Global Fixed Interest delivered a return of 0.20% for October.

While we were caught by surprise by the strength of the recent move lower in global bond yields, we believe the most likely direction for global bonds yields is up, over the remainder of the year.

Indeed, we point to positive economic metrics globally and believe that financial performance rather than political ructions will ultimately win through and push global bond yields and interest rates higher.

The fund’s current exposure to international fixed interest now constitutes around 50% of the portfolio, with the other half in domestic fixed interest and cash.

Only when we believe that global yields have reached appropriate levels (as a proxy we use the US Government 10-year bond rate which currently sits around 2.35%, versus our target of 3.00%) will we move international fixed interest exposure to the target allocation of 80%.

 

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.