Summer Global Fixed Interest fund performance summary as at 31 December 2019.
Unit price (as at 31 December 2019): $1.0840
Date the fund started: 19 September 2016
For information on fees, see our Fees page.
See the Global Fixed Interest page for the Summary of investment objective and strategy.
|Annualised total since inception||1 Month||3 Months||1 Year||3 Years|
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%).
|Asset name||% of fund net assets|
|1||ANZ transactional bank account||3.61%|
|2||BNP Paribas Account (USD)||2.08%|
|3||Government of Japan 0.00% 10/01/2020||1.77%|
|4||Government of Japan 1.20% 20/09/2035||1.52%|
|5||Federal Home Loan Banks 21/01/2020||1.40%|
|6||United States Treasury 15/01/25 0.25% ILB||1.19%|
|7||Kingdom of Spain (Government) 1.45% 30/04/2029||1.06%|
|8||Government of Japan 0.70% 20/12/2048||1.05%|
|9||Nykredit Realkredit A/S 1.0% 01/10/2050||0.97%|
|10||Towd Point Mortgage Trust 2019-4 A1||0.95%|
The top 10 investments make up 15.60% of the fund.
The December quarter, in general, delivered negative returns for fixed interest investors.
Internationally, the confluence of events and announcements that had rocked investor confidence throughout September, abated somewhat over the December quarter.
Indeed, positive rhetoric around the US and China trade dispute and reassurance from the world’s key central bankers that they stand-by, ready to assist the international economy further, boosted investor sentiment, in general.
The US central bank, the Federal Reserve, lowered its official cash rate by 0.25%, to 1.75% over the December quarter.
We close December with the fund’s exposures around - cash 5%, New Zealand Fixed Interest 5% and International Fixed Interest 90%.
Our global bond exposure is via an investment in the NZX listed, Global Bond Fund ETF, which is generally hedged to the New Zealand dollar and actively managed by PIMCO.
PIMCO are cautious on their outlook for the world economy and have consequently created what we would classify as a defensive portfolio. In reviewing PIMCO’s analysis and investments, we are satisfied that Summer Global Fixed Interest’s investment exposures associated with PIMCO are well diversified in a portfolio of higher quality assets with an appropriate aggregated duration.
Looking forward we believe the fund is well positioned for the next stage of the investment cycle, which we see as a period of less economic and political uncertainty compared to the widespread investor angst witnesses earlier in the year.
Foreign currency exposures associated with international fixed interest are hedged to the New Zealand dollar. As at 31 December 2019, these exposures represented 91.71% 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.