Summer Global Fixed Interest

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

Fund at a glance

Unit price (as at 31 December 2017): $1.0263

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

 Annualised total since inception1 Month3 Months1 Year
Fund 1.55% -0.21% 0.24% 2.90%

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 9.37%
2 Italy, Republic of (Government) 0.000% 30/04/2018 4.13%
3 Government of Japan 0.00% 22/01/2018 GB 3.11%
4 Italy, Republic of (Government) 0.000% 31/01/2018 1.67%
5 United States Treasury 15/01/25 0.25% ILB 1.13%
6 United Kingdom (Government) 1.5% 22/01/2021 1.02%
7 New Zealand Local Government Funding Agency Ltd 15/05/2021 6.00% 1.01%
8 Transpower New Zealand Ltd 30/06/2022 4.30% 1.00%
9 United Kingdom (Government) 3.50% 01/22/2045 0.96%
10 Credit Agricole Sa 8.125% 19/09/33 0.93%

The top 10 investments make up 24.34% of the fund.

Manager's comments 

Fund Performance

Summer Global Fixed Interest reported a loss of 0.21% for the month, but delivered returns of 0.24% for the three months to December and 2.90% for the year.

Market Commentary

While we were caught by surprise by the strength of the move lower in global bond yields earlier this year we believe the increase in global bonds yields, in general, over the December quarter, will set the tone for the rest of 2018. Indeed, we point to positive economic metrics globally and the gradual reduction in global monetary policy as likely to push global bond yields and interest rates higher.

The Federal Reserve steadily increased its official cash rates over 2017 and to us is on track to continue the normalisation of monetary policy (higher cash rates) into this year and the next.

Given the recent tax cuts delivered to corporate America and the upbeat business and consumer sentiment evident at the end of last we think the story will be all about inflation this year. 

Portfolio Positioning

As United States bond rates moved towards cycle highs over December we took the opportunity to increase the fund’s exposure to international fixed interest, which now constitutes around 75% of the portfolio, retaining the remainder in domestic fixed interest and cash.

Our next move is to wait and 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 2.55% versus our target of 3.00%) will we further increase the fund’s exposure to international fixed interest.


We believe the building blocks are in place for a resurgence in global inflation. We expect other central banks to join the US regulator by withdrawing the monetary policy stimulus that has been in place for some time now.


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.