Summer New Zealand Equities
Summer New Zealand Equities fund performance summary as at 30 September 2025.
Fund at a glance
Unit price (as at 30 September 2025): $1.8402
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% | 7.00% | 3.17% | 4.80% | 6.43% | 5.22% |
| 17.50% | 7.36% | 3.30% | 4.95% | 6.80% | 5.59% |
| 10.50% | 7.60% | 3.39% | 5.05% | 7.06% | 5.84% |
^ 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 57.84% of the fund.
Manager's Commentary
How did your portfolio return?
The Summer New Zealand Equities Fund (the fund) delivered a return net of fees and before tax of 3.52% during September. For the 12 months to the end of September, the fund delivered a return net of fees and before tax of 7.44%.
The key contributor to performance was a modest out of index position in Restaurant Brands (RBD) which received a full takeover offer at $5.05 per share sending the stock price surging on the last trading day of the month. We think the chances of success are high and the share price is trading near the takeover price, suggesting the market has the same view. Our overweight in Heartland Bank (HGH) also added to performance. There was no ‘new news’ for HGH however we expect investors are becoming more comfortable following a review its Motor business. Reverse mortgages was the standout division in the August result and accelerating growth here is encouraging.
The largest detractor from performance was again our high-conviction overweight position in SkyCity. In August, the company announced a deeply discounted equity raise. The stock immediately weakened relative to the issue price of 70 cents, as underwriters were left with an unexpectedly large shortfall from both institutional and retail entitlements. This created heavy selling pressure.
However, the recapitalisation has effectively resolved concerns about leverage. One remaining regulatory catalyst is the outcome of the Adelaide casino review, which will likely result in a fine. While we established our position too early, we believe earnings should begin to recover in FY27, supported by the benefits from the NZICC, online operations reaching break-even, and leverage to an improving New Zealand economy.
What happened in the markets that you invest in?
New Zealand’s June quarter GDP result was significant, showing a -0.90% drop that quickly recalibrated market expectations for more official cash rate (OCR) cuts before the year end. The RBNZ also re-forecast the terminal rate to around 2.25% to 2.50% by year-end. Not surprisingly, the interest rate sensitive New Zealand equity market, and in particular the listed property sector, responded with healthy positive returns for the month.
Most of the retail sector reported results in September. Overall, the outcomes were mixed with several Australian-listed retailers that run significant New Zealand operations providing cautiously optimistic forward-looking commentary. However, this optimism was absent from the New Zealand-listed retailers, with the exception of Hallenstein Glasson, whose performance was largely supported by its substantial Australian business.
Fonterra delivered a cracking result and outlook statement for its continuing operations after the sale of its Mainland brands business as it continues a hugely successful decade of transformation. Your fund has held a long- standing overweight in this name, although has been trimming its position into share price strength.
What are we thinking about the future?
The August reporting season showed modest growth but missed market expectations and there were further downgrades to FY26 and FY27 forecasts. Dividends held up better than earnings – perhaps a sign of management confidence in the future. Green shoots were not really evident, but expectations were set low and with the eventual trickle down from the booming agriculture sector and the prospect of a consumer led recovery driven by lower interest rates and a return to house price growth we are cautiously optimistic the worst is behind us. We continue to add to cheaply priced companies with strong earnings leverage to this eventual recovery.
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.
