Summer Global Fixed Interest fund performance summary as at 30 September 2019.
Unit price (as at 30 September 2019): $1.0866
Date the fund started: 19 September 2016
For information on fees, see our Fees page.
See the Global Fixed Interest page for the Summary of investment objective and strategy.
|Annualised total since inception||1 Month||3 Months||1 Year||3 Years|
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%).
|Asset name||% of fund net assets|
|1||ANZ transactional bank account||4.29%|
|2||Government of Japan 0.00% 19/11/2019||2.17%|
|3||Kingdom of Spain (Government) 0.6% 31/10/2029||1.86%|
|4||BNP Paribas Account (USD)||1.83%|
|5||United States Treasury 2.875% 30/04/2025||1.69%|
|6||United States Treasury 15/01/25 0.25% ILB||1.55%|
|7||Government of Japan 0.70% 20/12/2048||1.32%|
|8||United States Treasury 15/01/28 0.50% ILB||1.32%|
|9||Government of Japan 0.10% 20/06/2029||1.18%|
|10||Kingdom of Spain (Government) 1.45% 30/04/2029||0.96%|
The top 10 investments make up 18.17% of the fund.
The September quarter, in general, was a positive period for investors.
Internationally, a confluence of negative events and announcements continued to beat down on investor sentiment, however, fixed interest investments generally appreciated in value over the quarter – simply a logical response to regulator pledges of on-going economic and financial assistance.
Indeed, the US central bank, the Federal Reserve, lowered its official cash rate via two cuts of 0.25% each, over the reporting period.
We close the September quarter with the fund broadly approximating its target asset allocation: 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.
PIMCO are cautious on their outlook for the world economy and have consequently created what we would classify as a defensive portfolio. In reviewing PIMCO’s analysis and investments, we are satisfied that Summer Global Fixed Interest’s investment exposures associated with PIMCO are well diversified in a portfolio of higher quality assets with an appropriate aggregated duration.
Looking forward we believe the fund is well positioned for the next stage of the investment cycle, which we see as a period of economic and political uncertainty with commensurate asset price volatility.
We generally hedge the fund’s foreign currency exposures. As at 30 September 2019, these exposures represented 89.35% 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.