Summer New Zealand Equities

Summer New Zealand Equities fund performance summary as at 30 September 2018. 

Fund at a glance

Unit price  (as at 30 September 2018): $1.3141

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 or the product disclosure statement

Fund objective and strategy

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

Fund returns

 Annualised total since inception1 Month3 Months1 Year
Fund 14.62% 1.43% 6.29% 19.56%

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 Limited 7.25%
2 ANZ Cash Deposit 6.84%
3 The a2 Milk Company Limited 6.49%
4 Fisher & Paykel Healthcare Corporation Limited 6.26%
5 Ebos Group Limited 5.99%
6 Ryman Healthcare Limited 5.88%
7 Genesis Energy Limited 5.87%
8 Infratil Limited 5.84%
9 Mainfreight Limited 5.76%
10 Spark New Zealand Limited 5.75%

The top 10 investments make up 61.93% of the fund.

Manager's comments 

Market Commentary

The September quarter is an important one in terms of company profit results and we were pleased to note that earnings growth for reporting companies was ahead of our forecasts. We believe that the New Zealand economy, although certainly moving at a slower clip than this time last year, remains in reasonable health and this was particularly apparent in the results of domestically oriented companies. Export focused companies also reported strong results, a reflection of a slightly weaker New Zealand dollar and pleasing global growth rates. For example, the fund's exposures to Delegats and Sanford, both of which have significant offshore earnings, performed well in the quarter. The quarter was also notable for the volatile behaviour in the stock price of a2 Milk. The company has a new Chief Executive and the new appointee sold her entire stock position a mere two months after joining the company. This is very concerning and investors have, rightfully in our view, expressed their displeasure. The fund remains exposed to the company, but recent events bring into question the decision to remain so.    

Portfolio Positioning

The fund significantly increased its exposure to stocks with offshore earnings in the past six months and this strategy remains in place. The expectation then, as it is now, was that the New Zealand dollar would weaken. This view has not changed. At the same time, long standing positions in exposures with high dividend yields remain in place. The fund retains a particular preference for exposures to New Zealand infrastructure companies such as Meridian, Ports of Tauranga and Infratil.


With the domestic economy still performing relatively well, international investors are unlikely to reduce their New Zealand equity investments. With this in mind it is timely to recall that over 50% of the local equity market is owned by offshore investors. The high yields offered by listed companies in New Zealand are a further attraction. The fund still retains a small number of growth exposures, most notably a2 Milk. However, we expect that yield will remain an important component of total returns over the next quarter.


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.