Summer New Zealand Equities

Summer New Zealand Equities fund performance update as at 28 February 2017. 

Fund at a glance

Unit price (as at 28 February 2017): $0.9813

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 returns

 Total since inception1 Month3 Months
Fund -1.82% -0.66% 2.48%

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%). 

Fund objective and strategy

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

Manager's comments

February was a positive month for the New Zealand equity market in general, however, Summer New Zealand Equities had a tough month, posting a loss of 0.66%, primarily due to the underperformance of two key exposures within the fund; CBL and Sky Television.

In review, the month was very busy in terms of corporate updates.

On the positive side, A2 Milk posted a stellar interim result, in our view. EBITDA rose by 243% and beat Forsyth Barr forecasts by an extraordinary 50%; fund exposure to A2 Milk was recently increased.

EBOS also reported an excellent result with both major divisions exceeding our expectations. Consequently we have lifted our forecasts slightly.

Auckland International Airport was another to post a better than widely expected interim result; operating profitability rose by 19% amid booming tourist numbers. However, we consider the stock price to be expensive and on this basis we are unlikely to increase fund exposure.

Rounding out the positive side of the ledger, good results were also reported by Skellerup, Port of Tauranga and Ryman, in our opinion.

On the downside, Freightways posted a slightly disappointing result due to a weaker performance from the information management division. The express packaging operation posted a solid result.

Fletcher Building was another to record a slightly softer than expected interim performance. Disappointingly, the company announced that a major construction contract had been a negative drag on company performance.

Comvita also reported a weaker than expected first half result. The company’s struggles in China are well documented but have unfortunately coincided with a poor honey collection season. We believe Comvita to be a well-run company and the fund’s exposure to Comvita has been lifted.

CBL also delivered a poor result and the stock was marked down aggressively.

Finally, the New Zealand Commerce Commission has ruled against the Sky Television/Vodafone merger citing the detrimental concentration of major sporting content. This announcement followed a good first half result from Sky Television; nevertheless the fund’s exposure to the company is under review, given the Commerce Commission’s judgement. 



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.