Summer Growth Selection
Summer Growth Selection fund performance summary as at 31 August 2024.
Fund at a glance
Unit price (as at 31 August 2024): $1.3870
Date the fund started: 8 April 2019
For information on fees, see our Fees page.
For more information on the Summer Growth Selection fund read the latest quarterly fund update and the product disclosure statement.
For the current tactical asset allocation and date of most recent review, please go to the Summer Growth Selection page.
Fund objective and strategy
See the Summer Growth Selection 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% | 5.74% | 0.53% | 4.79% | 10.87% | 2.65% |
| 17.50% | 6.05% | 0.64% | 4.92% | 11.46% | 2.93% |
| 10.50% | 6.26% | 0.71% | 5.02% | 11.86% | 3.12% |
^ 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 | Intermede Global Equity Fund | 13.59% |
| 2 | Hunter Global Fixed interest Fund | 6.74% |
| 3 | ANZ transactional bank account | 2.16% |
| 4 | Fisher & Paykel Healthcare Corporation Limited | 1.93% |
| 5 | Goodman Property Trust | 1.42% |
| 6 | Precinct Properties New Zealand Limited | 1.39% |
| 7 | Infratil Limited | 1.31% |
| 8 | BHP Group Limited | 1.18% |
| 9 | Contact Energy Limited | 1.07% |
| 10 | CSL Limited | 1.07% |
The top 10 investments make up 31.86% of the fund.
Manager's Commentary
What happened in the markets that you invest in?
There was considerable volatility in global markets over the late July and early August period on the back of shifting views around future growth and inflation, unemployment and interest rates. By month’s end, markets had formed a consensus that inflation will continue to moderate; growth will slow but not stall; and that short-term interest rate cuts will continue to be delivered.
Many NZ and Australian companies reported their June period end financial results in early August, illustrating a challenging economic backdrop with downgrades to both growth and near-term earnings. The NZ market, having baked-in much of this negative sentiment previously, delivered a positive return for the month while the Australian market index marginally slipped into negative territory. Listed property had a very strong month on the back of the RBNZ’s first rate-cut this cycle with the index delivering 7.22% growth for the month. Global equities (in local currency) delivered strong returns, but a 5.3% rally in the NZD against the USD saw returns in NZ dollars slightly negative.
Fixed interest markets delivered returns of close to 1% during the month of August.
For further commentary on each asset class in the Summer Growth Selection, refer to the relevant single-asset class funds.
How did your portfolio perform?
The Summer Growth Selection delivered a return net of fees and before tax of 0.83% for the month of August.
For the 12 months to the end August, the Growth Selection delivered a gross return net of fees and before tax of 12.46%.
It was a mixed month for our portfolio managers within the Summer Growth Selection. NZ and Global equities along with enhanced cash outperformed, whilst AU equities, listed property and both NZ and global fixed interest underperformed their benchmarks.
The NZ dollar, relevant for our portfolios with unhedged foreign currency exposures, rose 5.3% against the US dollar, and 1.4% against the Australian dollar.
We actively manage the fund’s foreign currency exposures associated with global equities and listed property and hedge foreign currency exposures associated with global bonds. As of 31 August 2024, these exposures represented around 55% of the value of the fund. After allowing for foreign currency hedges in place, approximately 27% of the value of the fund was unhedged and exposed to foreign currency risk.
What are we thinking about the future?
Global economic updates provided over August were largely in line with our base case. That is, a gradual decline in inflation and interest rates, with a gradual slowing in economic growth in the key US market.
We recently increased our weights in both NZ equities and Listed Property, backing our view that the NZ economic cycle is somewhere near the bottom and the RBNZ has plenty of scope to further cut short term interest rates, improving the outlook for both asset classes.
Global shares continue to show wide dispersion around both earnings growth and valuation. US leads the pack, whilst Europe and Asia lag. In our view the US equity market valuation, which is over 60% of the globe, is expensive relative to the likely earnings delivery over the medium term. We have a lower exposure to global shares than normal.
Fixed interest markets have delivered very strong returns over the past twelve months. Whilst still attractive, valuations are now closer to fair in our view, and we recently lowered our exposure.
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.
