Summer New Zealand Equities
Summer New Zealand Equities fund performance summary as at 31 July 2025.
Fund at a glance
Unit price (as at 31 July 2025): $1.7875
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% | 6.79% | 1.83% | 8.91% | 3.88% | 3.33% |
| 17.50% | 7.14% | 1.83% | 8.96% | 4.27% | 3.70% |
| 10.50% | 7.37% | 1.84% | 9.00% | 4.52% | 3.95% |
^ 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 59.70% 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 1.84% during July. For the 12 months to the end of July, the fund delivered a return net of fees and before tax of 4.90%.
The biggest positive contributors to the fund's outperformance were overweight positions in Sky City Entertainment (SKC) and Ryman Healthcare (RYM), assisted by an underweight in Auckland Airport (AIA). Against that, our overweight in Tourism Holdings dragged on relative performance.
SKC shares lifted slightly after some significant falls in prior months. The next six months is critical for the casino operator as they will incur a regulatory fine in Australia, roll out mandatory carded play in their NZ operations and look to sell a property asset to improve balance sheet settings. RYM announced a better-than-expected sales number at their shareholder meeting, whilst AIA saw a slightly weaker outlook. Tourism Holdings gave back some of its material gains from the prior month as the market awaits the next steps from the new 20% shareholders and their M&A plans for the company.
What happened in the markets that you invest in?
July is a generally a quiet month for news flow as companies prepare for results season. There were a few annual shareholder meetings, with RYM’s announcement of increasing sales momentum the most market moving. Sky Tv acquired Warner Brothers Discovery NZ for NZ$1. The market rewarded Sky Tv’s acquisition with a pop in its share price as it sees upside from improved market positions in both advertising and streaming markets., However, significant synergies will be required to turn around this loss-making business and bringing the two businesses together effectively and efficiently will be key.
NZ Inflation and economic data were generally in-line with expectations, and the RBNZ kept short term interest rates unchanged at its early July meeting. The US-led trade war rolls on, with numerous announcements and delays and policy U-turns, but culminated in a worse than expected 15% tariff on NZ goods exported to the USA.
What are we thinking about the future?
Reporting season starts in earnest in August. We sense a further delay in economic recovery as confidence takes a hit from rising unemployment and tariff uncertainty. Companies have been hunkering down for some time. Offsetting this gloomy mood, effective interest rates are still falling and government austerity should start to lift soon, so the market is set up for better profits ahead.
The portfolio continues to see material upside to earnings and share prices for several domestically exposed stocks – not in the next result, but over the medium term. We apply our research effort to understand a business’ risks and opportunities, form an unbiased view on likely outcomes and then allocate your capital to companies where we identify the best returns for risks taken.
In aggregate, the significant interest rate cuts and over two years of poor economic growth, position the portfolio for a rebound. Defensive sectors of the market, outside of property, look fully valued to us while domestic cyclical business valuations look attractive once again. We are very selective in our exposure to high growth names as the risks of missing financial delivery look high to us.
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.
