Summer New Zealand Equities
Summer New Zealand Equities fund performance summary as at 30 June 2025.
Fund at a glance
Unit price (as at 30 June 2025): $1.7557
Date the fund started: 19 September 2016
For information on fees, see our Fees page.
For more information on the Summer New Zealand Equities fund, read the latest quarterly fund update and the product disclosure statement.
Fund objective and strategy
See the New Zealand Equities 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% | 6.63% | 2.52% | 3.42% | 8.20% | 4.22% |
| 17.50% | 6.99% | 2.57% | 3.46% | 8.59% | 4.59% |
| 10.50% | 7.22% | 2.60% | 3.48% | 8.86% | 4.84% |
^ 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
The top 10 investments make up 60.55% of the fund.
Manager's Commentary
How did your portfolio return?
Summer New Zealand Equities (the fund) delivered a return net of fees and before tax of 2.65% over June. For the 12 months to the end of June the fund delivered a return net of fees and before tax of 9.25%.
Positive attribution came from our overweight positions in Tourism Holdings (THL), Tower and Sky Television (SKT). THL received a takeover bid, backed by an existing executive, whilst Tower continues to deliver strong operating results. SKT drifted higher as the market anticipates a successful rugby renewal in the next few months. Our modest overweight in Fletcher Building (FBU) hurt performance as their investor day provided little in the way of bankable short-term improvements.
What happened in the markets that you invest in?
June is “confession” season for many NZX companies, as they update guidance ahead of their release of full results in August. Silence means prior guidance still holds. Those companies that did update guidance, including Kathmandu and Vulcan Steel, are exposed to the still weak domestic economy and reduced earnings forecasts.
The proposed takeover of THL dominated corporate news during the month. The company has been struggling with a downturn in demand in the US and slower sales of ex-fleet motor homes – not uncommon for this point in the cycle. The bid is at a material premium to the last traded price, but we would not be surprised in the independent valuation came in at a higher level.
What are we thinking about the future?
Consumer confidence surveys indicate people are uncertain about their job prospects, and this is driving their behaviour in both the retail and housing markets. Most hard data (rather than survey responses) indicate the NZ economy is past the bottom and a recover is just around the corner. However, we realise we have been saying that for the last nine months and it has failed to materialise so far.
The takeover bid for THL has endorsed our philosophy of looking for mispriced, medium-term earnings and cash flows. If listed market investors “give up” at the bottom of the cycle, private capital often steps in. Waiting for earnings to turn can feel like the right thing to do, particularly as value signals often appear before a cyclical bottom in earnings has been reached, but we believe higher returns are possible from the patient pursuit of strong medium-term valuation support.
Our conviction investment positions remain largely unchanged. As Tower, Sky Tv and Channel Infrastructure get closer to our view of fair value, we have been rotating into Ryman Healthcare and Heartland Bank where current uncertainties are more than reflected in their share prices.
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.
