Summer Global Fixed Interest

Summer Global Fixed Interest fund performance summary as at 31 January 2024. 

Fund at a glance

Unit price (as at 31 January 2024): $1.0857

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% 0.93% -0.40% 4.42% 2.53% -1.65%
17.50% 1.26% -0.46% 4.93% 2.99% -1.40%
10.50% 1.49% -0.50% 5.28% 3.30% -1.24%

  ^ 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  93.17%
2 Smartshares Global Bond ETF 4.05%
3 ANZ transactional bank account 2.78%

The top ten investments make up 100.00% of the fund.

Manager's Commentary

What happened in the markets that you invest in?

January saw interest rates rise, and bond markets post small losses. In the US the 10-year Government bond (a widely used benchmark for global interest rates) yield rose 10bps. Closer to home, New Zealand wholesale interest rates also rose, with the 2-year swap rate rising 12bps and the 10-year swap rate rising 24bps.

There were several important data releases over January influencing these interest rate moves: US December inflation prints were slightly higher than expected and it was a similar story for US 3rd quarter gross domestic product (GDP), both indicating that the US economy remains strong, dampening hopes for imminent policy rate cuts by the US Federal Reserve

How did your portfolio perform?

Summer Global Fixed Interest delivered a return net of fees and before tax of -0.56% for the month of January. For the 12 months to the end of January the fund delivered a return net of fees and before tax of 3.77%. 

Apart from directly held New Zealand dollar cash, and some units of the Smartshares Global Bond Fund (GBF.NZ) held for liquidity purposes, Summer Global Fixed Interest is fully invested in the Hunter Global Fixed Interest Fund which uses PIMCO as the investment manager.

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

While central banks will remain vigilant in their fight against inflation, the sustained tightening in monetary policy has done its job in reducing inflation. We do, however, think that inflation will likely prove to be “sticky”, meaning higher for longer, and therefore that term interest rates and bonds yields are likely to remain at attractive yields for some time yet.  

PIMCO are well set in our opinion to play a long-game; an estimated gross yield-to-maturity of around 5.3%1, a duration of close to 5.5 years2 and a weighted-average portfolio credit quality of hovering between AA and AA-3. 

1Gross yield to maturity is calculated as the weighted-average gross yield of all securities in the portfolio as at 31 January 2024, assuming that all amounts owed by the issuer will be received by the Fund and is based on PIMCO’s calculation methodology; excludes any taxes, fund charges, trading expenses or fees

2Duration is the weighted-average portfolio sensitivity to changes in value resulting from changes in the level of global wholesale interest rates

3Weighted-average portfolio credit quality is calculated by PIMCO and is the weighted-average credit rating of each security within the portfolio; where a security is not rated by an external agency, 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.