Summer New Zealand Equities

Summer New Zealand Equities fund performance update as at 30 June 2017. 

Fund at a glance

Unit price (as at 30 June 2017): $1.0457

Date the fund started: 19 September 2016

For information on fees, see our Fees page.

Further information can be found in the product disclosure statement

Fund objective and strategy

See the New Zealand Equities page for the Summary of investment objective and strategy.

Fund returns

 Total since inception1 Month3 Months6 Months
Fund 4.62% 3.10% 4.50% 8.75%

Fund returns are calculated net of fund charges, trading expenses and accrued tax for a New Zealand resident individual paying tax at the highest Prescribed Investor Rate (28%). 

Top 10 investments

  Asset name % of fund net assets
1 Meridian Energy Ltd 7.89%
2 Fisher & Paykel Healthcare Ltd 7.82%
3 Mainfreight Ltd 7.51%
4 ANZ Cash Deposit 6.61%
5 Z Energy Ltd 6.20%
6 Ebos Group Ltd 6.03%
7 Fletcher Building Ltd 6.03%
8 Freightways Ltd 5.64%
9 Ryman Healthcare Ltd 5.19%
10 A2 Milk Company Ltd 4.68%

The top 10 investments make up 63.60% of the fund.

Manager's comments

The New Zealand equity market, in general, enjoyed a strong month in June, rising 2.60% to take the year’s return to over 10.00%.

Summer New Zealand Equities also performed well this month delivering a return of 3.10%.

The best performers over 2017 have been the fund’s exposures to A2 Milk, Air New Zealand, Fisher & Paykel Healthcare, and Restaurant Brands.

June was notable for a number of important company announcements.

Sky Network Television has decided not to appeal the Commerce Commission’s decision against the proposed merger with Vodafone New Zealand. The move is slightly at odds with earlier indications and this has left a number of investors rather bemused, including ourselves. It appears the companies have opted to pursue less formal commercial ties, such as joint products. Nonetheless, this is a less optimal outcome and the stock was sold off quite aggressively.

On a more positive note, Comvita has provided a strongly worded update on the myrtle rust situation that is said to endanger Manuka honey supplies. After considering the impact of myrtle rust in Australia, where the fungus has been present since 2010, the company believes the outbreak will not have a material impact. Comvita rallied sharply in response to the announcement.

A2Milk was another stock to rally strongly in June. The company has upgraded earnings forecasts for the second time this year following what we consider to be excellent trading results in Australia and China. Analyst forecasts and valuations have been lifted substantially and the stock remains a core portfolio exposure.

Auckland Airport was another stock to release a major statement this month. The company confirmed its long term CAPEX plans which amount to $1.8bn. To be spread over 10 years, investments include a new domestic terminal and a second runway. The company remains an excellent long term investment but on current prices we find it difficult to justify building on the fund’s current exposure.

Lastly, in an announcement relevant to EBOS, an interim report regarding the Australian pharmacy industry suggests to us that wholesalers are not making excessive profits and that it may in fact be appropriate to ease regulatory controls - we assess this as good news for EBOS.  


For more information on the Summer New Zealand Equities fund, read the latest quarterly fund update.

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.