Summer New Zealand Equities
Summer New Zealand Equities fund performance summary as at 30 April 2025.
Fund at a glance
Unit price (as at 30 April 2025): $1.6416
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% | 5.94% | -3.30% | -8.75% | -3.34% | -0.83% |
| 17.50% | 6.29% | -3.31% | -8.63% | -3.00% | -0.48% |
| 10.50% | 6.52% | -3.31% | -8.54% | -2.78% | -0.24% |
^ 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 61.47% 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 -3.32% over April. For the 12 months to the end of April the fund delivered a return net of fees and before tax of –2.44%.
Positive attribution came from our underweight position in Auckland Airport (AIA) as a new regulatory review of profits being earned by this near monopoly business was announced. Our overweight position in Sky TV and Spark were also positive contributors.
Against that, our overweight in Tourism Holdings (THL) hurt performance as it revealed that bookings into the US from Europe and Canada are well down post the introduction of tariffs and general economic uncertainty is causing consumers to delay the purchase of motorhomes. Cyclical businesses in general fell, as current level of uncertainty likely delays the economic recovery. Sky City, Michael Hill (MJH), Kathmandu Brands (KMD) and Mainfreight fit into that broad camp.
What happened in the markets that you invest in?
April was a month of unusual equity market volatility. The US efforts to rebalance its trade flows has created material uncertainty, not only for those countries and products directly targeted, but also for economic growth in general across the globe. Whilst NZ has a direct export exposure to the US totalling around 2% of GDP, significant flow-on effects from larger trading partners like Australia and China could create greater impacts on NZ.
Company specific news was centred on the impacts of current tariffs for those listed companies directly exposed, including Skellerup, Fisher and Paykel (FPH), KMD, Delegats and Sanford. We expect further announcements and changes over the next few months.
What are we thinking about the future?
The global economic uncertainty is likely to see businesses delay hiring and capital spending decisions for some months as they let the trade rules stabilise. The NZ government is unlikely to be generous in its efforts to offset the private sector pull back, given their focus on balancing the budget. As a result, our expected recovery in economic growth has probably been pushed out to late 2025.
We remain quite constructive on the outlook for the NZ market, however. Interest rates are falling, business and consumer confidence is at above average levels, net migration and housing construction are holding at reasonable levels and we believe the government will want to see major infrastructure projects kick off ahead of the next election in 2026.
At the stock specific level, we see strong valuation support for companies across the market, including property (Stride and Vital Healthcare), infrastructure (Channel Infrastructure and Contact Energy), retailers (MHJ and KMD) and tourism (THL). In addition, we continue to have positions in companies where we expect specific areas of uncertainty to become clearer over the next few months: Sky TV (rugby rights) and Fonterra (Mainland divestment) are two such examples.
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.
