Summer Global Fixed Interest

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Summer Global Fixed Interest fund performance summary as at 31 March 2018. 

Fund at a glance

Unit price (as at 31 March 2018): $1.0274

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 1.32% 0.21% 0.03% 1.90%

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
ANZ Cash Deposit 13.13%
Italy, Republic of (Government) 0.000% 30/04/2018 3.53%
Government of Japan 0.00% 23/04/2018  2.76%
Government of Japan 0.00% 21/05/2018  2.18%
Government of Japan 0.00% 04/06/2018  2.13%
United States Treasury 15/01/25 0.25% ILB 1.38%
United Kingdom (Government) 3.50% 01/22/2045 0.95%
United Kingdom (Government) 1.5% 22/01/2021 0.87%
Government of Japan 0.00% 09/04/2018  0.80%
Dansk 2.00% 01/10/2047 0.76%

The top 10 investments make up 28.50% of the fund.

Manager's comments 

Fund Performance

Summer Global Fixed Interest delivered returns of 0.21% for the month, 0.03% for the three months to March and 1.90% for the year.

Market Commentary

While we were caught by surprise by the strength of the move lower in global bond yields over the middle of last year, we believe the recent increase in global bonds yields, in general, over the last six months, will set the tone for the next quarter.

Indeed, taken together American tax reforms and a permitted increase in future US government spending were seen as further tailwinds to an economy operating at near to full capacity, in our view. Not surprisingly US interest rates, in general, moved up towards cycle highs over the March quarter.

Furthermore, we continue to look for and expect future inflation to persist, validating the US Federal Reserve’s action in normalising its monetary policy settings by sequentially increasing official interest rates.

Portfolio Positioning

Over the March quarter we maintained our exposure to international fixed interest at around 75% of the portfolio, retaining the remainder in domestic fixed interest and cash

Unfortunately over the period, global yields didn’t quite reach our targeted level – as a proxy we use the US Government 10-year bond rate – of 3.00%, a yield where we intended to further increase the fund’s exposure to international fixed interest.


While we believe the building blocks are in place for the sustained emergence of global inflation we must also acknowledge the increasing levels of investor angst.

Beyond the next quarter and into the end of the year we see a preference for income assets over growth assets, as the more dynamic investors position for the conclusion of the current economic cycle. 

While we forecast another foray higher for global bond yields, we may run out of patience in waiting to increase the fund’s exposure to international fixed interest. Regardless of whether or not the US Government 10-year bond rate hits 3.0% before the middle of the calendar year, we are likely to increase the fund’s exposure to international fixed interest.

We too, intend to position the portfolio for the next economic cycle, which we see as a period of economic and political uncertainty with the commensurate amount of asset price volatility.


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.