Summer Listed Property

Summer Listed Property fund performance summary as at 31 December 2021.

Fund at a glance

Unit price (as at 31 December 2021): $1.5649

Date the fund started: 19 September 2016

For information on fees, see our Fees page.

For more information on the Summer Listed Property fund, read the latest quarterly fund update and the product disclosure statement

Fund objective and strategy

See the Listed Property 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% 9.00% 5.96% 2.12% 4.78% 12.34%
17.50% 9.23% 5.99% 2.17% 4.96% 12.54%
10.50% 9.39% 6.01% 2.19% 5.08% 12.67%

 ^ 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 Goodman Property Trust 14.76%
2 Kiwi Property Group Limited 13.64%
3 Precinct Properties New Zealand Limited 11.01%
4 Vital Healthcare Property Trust 9.29%
5 Stride Property Group  8.51%
6 Argosy Property Limited 7.99%
7 Property For Industry Limited 7.72%
8 Investore Property Limited 3.80%
9 New Zealand Rural Land Company 2.25%
10 Asset Plus Limited 1.74%

The top 10 investments make up 80.71% of the fund. 

Manager's Commentary

Market Commentary

The S&P/NZX All Real Estate Gross with Imputation market index more than recovered its weak performance from October and in particular November, ending the December quarter positively.  Our listed property market increased in value over the December month despite expected Reserve Bank of New Zealand official cash rate hikes, and broadly flat longer term bond yields during the month. Changes in some KiwiSaver mandates from active to passive, plus the move in default settings from Conservative to Balanced likely exacerbated upward price moves in the sector.

New Zealand continues to boast strong economic momentum, as demonstrated by a 3.4% unemployment rate even as Auckland remained locked down. A recovering world economy is seeing strong demand for key NZ exports and we should expect to see continued employment strength as Covid restrictions are eased.

Portfolio Performance

The Summer Listed Property delivered a return of 2.12% (28% PIR) in the quarter under review and in the CYTD, delivered a return of 4.78% (28% PIR).

Key contributors to outperformance over the quarter were our out of index exposures in Australia such as Charter Hall Group, Rural Funds Group, Centuria Industrial REIT, Goodman Group, and Scentre Group.  Detractors to performance include our large underweight position in Goodman Property Trust, a modest underweight in Kiwi Property Group, and our long suffering overweight in Asset Plus, plus an out of index position in residential developer CDL Investments on concerns around a sharply slowing residential market.

Outlook

During November we began to chip away closing core underweights (much of the NZ REIT index) that had underperformed the broader market (and the Australian property index) materially on concerns around rising interest rates. Whilst the New Zealand Property Index roared back to life in December, the Australian sector did even better at +8.18% (in local dollar terms).  We continue to hold close to 20% of the portfolio out of this core index but expect this will reduce slightly in coming months particularly as it looks like the bulk of New Zealand's expected interest rate track is priced into the market. 

We continue to add to our position in New Zealand Rural Landco given its material discount to NAV and exposure to rising rural land prices. Strong commodity prices (and farm returns) should boost valuations of rural land. Longer term, a new government could change foreign ownership settings for rural assets.  We do not expect markets to reflect this in the near term but investors are paid a decent enough yield to be patient.

We actively manage the fund’s foreign currency exposures. As at 31 December 2021, the fund’s foreign currency exposures represented 11.79% of the value of the fund. After allowing for foreign currency hedges in place, approximately 6.47% of the value of the fund was unhedged and exposed to foreign currency risk.

 

 

 

 

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.