Summer Global Fixed Interest

Summer Global Fixed Interest fund performance summary as at 30 September 2024. 

Fund at a glance

Unit price (as at 30 September 2024): $1.1363

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 

PIR Total since inception (annualised) 1 Month 3 Month 1 Year 3 Years^
28% 1.27% 0.86% 2.38% 7.53% -0.30%
17.50% 1.64% 0.98% 2.73% 8.56% 0.02%
10.50% 1.88% 1.07% 2.97% 9.25% 0.24%

  ^ Annualised

Fund returns are calculated net of fund charges, trading expenses and accrued tax for a New Zealand resident individual paying tax at the Prescribed Investor Rate identified above. 

Top 10 investments 

  Asset name % of fund net assets
1 Hunter Global Fixed interest Fund  95.11%
2 ANZ transactional bank account 4.89%
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The top ten investments make up 100.00% of the fund.

Manager's Commentary

What happened in the markets that you invest in?

September was another positive month, in general, for international fixed interest investors.

The US Federal Reserve (the Fed) reset market participant thinking when it comes to easing monetary by delivering a larger than expected 0.50% cut to its official cash rate, pushing the Fed funds rate to just below 5% and further emboldening participants to push bond yields and term interest rates significantly lower.

Summer Global Fixed Interest’s returns for the month were a combination of capital gains and interest receipts. 

How did your portfolio perform?

Summer Global Fixed Interest delivered a return after fees and before tax of 1.19% for the month of September and for the 12 months to the end of September Summer Global Fixed Interest delivered a return after fees and before tax of 10.30%.

Apart from a small holding of directly held New Zealand dollar cash (typically 5%, in line with the fund’s target allocation to cash) Summer Global Fixed Interest’s investment exposure is through its investment in the Hunter Global Fixed Interest Fund, a multi-rate PIE fund hedged to the New Zealand dollar. PIMCO Australia Pty (PIMCO) is the investment manager.  

What do we think is going to happen in the next few months?

PIMCO are well set, in our opinion, to play a long game anticipating a “soft recession”, which in general and over the longer term should be a good outcome for high-quality bond portfolios.

However, portfolio duration, a measure of how sensitive the portfolio is to a given change in global wholesale interest rates, at around 5.80 years is significantly less than the 6.70 year duration of the fund’s benchmark.

In practical terms, this may mean periods of return volatility in relation to the returns of the benchmark; dramatic moves lower in global bond yields will likely see portfolio under performance while minimal moves as well as up moves in yields will likely see the fund outperform its benchmark.

We estimate the fund’s gross yield-to-maturity, calculated as the weighted-average gross yield of all securities in the portfolio, to be around 4.80% and the fund has a weighted-average portfolio credit quality of AA-. The weighted-average portfolio credit quality is calculated by PIMCO and is the weighted-average credit rating of each security within the portfolio (when a security is not externally rated PIMCO will assign a credit rating).


 

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.