Summer Global Fixed Interest

Summer Global Fixed Interest fund performance update as at 31 August 2017. 

Fund at a glance

Unit price (as at 31 August 2017): $1.0224

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

 Total since inception1 Month3 Months6 Months
Fund 1.74% 0.44% 0.90% 2.02%

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 17.60%
2 New Zealand Local Government Funding Agency Ltd 15/12/2017 6.00% 3.01%
3 Transpower New Zealand Ltd 30/06/2022 4.30% 2.81%
4 New Zealand Local Government Funding Agency Ltd 15/04/2020 3.00% 2.38%
5 Bank of New Zealand Subordinated Note 17/12/2025 5.314% 2.38%
6 ANZ Bank New Zealand Ltd 25/09/2020 4.03% 1.76%
7 Port of Tauranga Ltd Fixed Rate Note 29/10/2019 5.865% 1.73%
8 Japan Treasury Disc Bill #695 1.64%
9 Sky City Entertainment Group Ltd 28/09/2022 4.65% 1.53%
10 Precinct Properties New Zealand Ltd 17/12/2021 5.54% 1.51%

The top 10 investments make up 36.35% of the fund.

Manager's comments

Summer Global Fixed Interest delivered a return of 0.44% for August.

While we have been caught by surprise by the strength of the move lower in global bond yields over the course of the month, we continue to anticipate that the path of global interest rates and bond yields, in general, will be up for the remainder of the year.

We point to positive economic metrics globally and believe that financial performance rather than political ructions will ultimately win through and push global bond yields and interest rates higher.

With bond yields currently at cycle lows for the year, we have elected to maintain a limited allocation to international fixed interest, which as at the end of August, constitutes around 40% of the fund’s investments, the remainder being New Zealand cash and fixed interest.

 

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.