Summer Global Fixed Interest

Summer Global Fixed Interest fund performance summary as at 30 September 2018. 

Fund at a glance

Unit price (as at 30 September 2018): $1.0302

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 or 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 1.05% -0.14% -0.04% 0.38%

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 5.67%
2 France, Republic of (Government) 0.00% 16/01/2019 4.30%
3 Government of Japan 0.00% 12/02/2019 3.08%
4 Government of Japan 0.00% 22/10/2018 2.74%
5 United States Treasury 2.875% 30/04/2025 1.57%
6 United States Treasury 15/01/25 0.25% ILB 1.46%
7 United States Treasury 15/01/28 0.50% ILB 1.21%
8 Spain, Kingdom of (Government) 1.40% 30/07/2028 1.19%
9 France, Republic of (Government) 0.00% 04/01/2019 0.98%
10 United Kingdom (Government) 3.50% 01/22/2045 0.90%

The top 10 investments make up 23.10% of the fund.

Manager's comments 

Market Commentary

Over the September quarter market participants struggled to agree on a clear market consensus for the direction of asset prices. 

Indeed, while the rout in emerging markets’ currencies and equities markets continued with gusto early in the quarter, it was only fatigue in our opinion, rather than a perception of a lasting resolution, that resulted in the recovery of many emerging markets asset prices at quarter-end close.

Uncertainty, in our view, will be the theme for the remainder of the year. Like a long-term sufferer of chronic back pain with unannounced periods of acute discomfort, we see asset prices, in general, as becoming more volatile with a commensurate waxing and waning in investor angst. 

Friction arising with the trade war rhetoric is now well considered by the market. However, the spasm associated with the budget proposed by the populist Italian government, in our view, is not. Not surprisingly, the Italian government 10-year bond yield has hit levels not seen since 2014, as investors suffer flashbacks to the Greek government debt crisis of a few years ago. 

The US central bank, often times referred to as the world’s central banker, in our opinion, is doing a very good job in communicating its intention to further normalise monetary policy: another interest rate increase this year with a series of hikes anticipated beyond. However, we doubt that the US regulator will be able to deliver on its forecast schedule of interest rate hikes. We see the recent bout of uncertainty and an increasing number of “known unknowns” and “unknown unknowns” as likely to negatively impact on business and household activity, or a natural cooling of economic activity, so that meaningful increases to key global interest rates become redundant.   

Portfolio Positioning

Over the September quarter we took the opportunity to move the portfolio towards 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 Smart Shares Exchange Traded Funds, Global Bond Fund, which is generally hedged to the New Zealand dollar and actively managed by PIMCO.


Looking towards the end of the year, we believe the fund is now well positioned for the next economic 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 2018, these exposures represented 83.71% 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.