Summer New Zealand Equities

Summer New Zealand Equities fund performance update as at 31 January 2017. 

Fund at a glance

Unit price (as at 31 January 2017): $0.9880

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 -1.17% 2.73% 2.89%

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

January was a positive month for the New Zealand equity market.

Summer New Zealand Equities returned 2.73% for the month.

In corporate news this month, Refining New Zealand (formerly New Zealand Refining) announced it had enjoyed an excellent conclusion to 2016.  Gross margins were particularly strong in the last quarter of the year, with the company referring to ‘good operational performance’. Forsyth Barr profit forecasts for 2016 have been lifted, as has been the final dividend: the stock remains a key exposure within the portfolio.

In common with Refining New Zealand, integrated electricity company Meridian is also experiencing strong trading. We assess the operational results in 1H17 as excellent, albeit the outlook for 2H17 is less certain given the industry’s expectation of weaker electricity prices.

Z Energy was yet another portfolio stock to announce a strong and improving operational performance in January. Synergy benefits continue to impress us and the company expects gearing levels to reach targeted levels 9-12 months earlier than we expected; we believe this is likely to permit a significant increase in dividends, going forward.

Finally, Fisher & Paykel Healthcare (FPH) came under selling pressure this month in response to Trump’s policy towards Mexico, where FPH has a large manufacturing plant. The company has been explicit in its assertion that the United States market could be supplied from New Zealand if need be. Despite this, we consider it difficult to be certain as to the long-term implications of Trump’s trade policy and we assess investors as waiting for greater clarity. In the meantime we expect the stock will remain under price pressure.


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.