Summer New Zealand Equities

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Summer New Zealand Equities fund performance summary as at 31 October 2017. 

Fund at a glance

Unit price (as at 31 October 2017): $1.1283

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 Months1 Year
Fund 12.89% 2.62% 6.26% 11.47% 17.53%

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 ANZ Cash Deposit 8.10%
2 Meridian Energy Limited 7.68%
3 Fisher & Paykel Healthcare Corporation Limited 7.58%
4 Mainfreight Limited 7.22%
5 The a2 Milk Company Limited 5.87%
6 Z Energy Limited 5.58%
7 Ebos Group Limited 5.53%
8 Freightways Limited 5.50%
9 Fletcher Building Limited 5.05%
10 Comvita Limited 4.19%

The top 10 investments make up 62.30% of the fund.

Manager's comments 

Summer New Zealand Equities delivered a return of 2.62% for October.

October was a solid month for the New Zealand equity market in general which rose 2.72%. The positive return was particularly pleasing given the uncertainties of the general election and it appears to us that investors have taken an optimistic view of the new government coalition. Exporters and companies with offshore earnings did particularly well in October, a reflection of the fall in the New Zealand dollar that occurred after the announcement of the new government.

Top performing exposures for the month included a2 Milk (+34.8%) and Comvita (+13.5%).

In company news this month, Z Energy posted a good set of operating statistics, setting the company up to meet full-year 2018 forecasts. The company continues to impress us in terms of cash-flow generation, a factor underpinning the company’s excellent dividend yield of 10.5%. The fund retains its existing exposure to the stock.

Skellerup was another company to deliver a strong trading update in October. We forecast that operating earnings are going to rise 10% in full-year 2018 with most divisions reporting strong demand conditions. The company is very well managed, in our view, and has a stable of strong businesses, both of which are features that continue to attract long-term investors.

Freightways was also in the news this month. The company delivered a solid operating update and earnings are on track to meet our forecasts. With the departure of long-serving CEO Dean Bracewell imminent, the firm will be anxious to ensure continuity of strategy and growth forecasts. Similarly impressive trading updates were issued by EBOS and Fisher & Paykel, the latter of which hosted an investor day in Australia this month.

Not all company announcements were positive in October, however. Fletcher Building delivered yet another construction project write-off and the stock price plunged in response. The company has excellent market positions in New Zealand but has been let down by poorly-executed contracts and disappointing management decisions, in our view.

Lastly, the fund has reduced its exposure to a2 Milk. The stock has been the best performer on the New Zealand stock exchange this year but now looks expensive to us on a range of measures. The fund also continues to look for exposures to growth stocks, exporters and firms with offshore earnings.


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.