Summer New Zealand Equities

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

Fund at a glance

Unit price (as at 31 August 2017): $1.0819

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 8.27% 1.91% 6.69% 10.28%

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 Fisher & Paykel Healthcare Corporation Limited 8.28%
2 Meridian Energy Limited 8.15%
3 Mainfreight Limited 7.63%
4 Fletcher Building Limited 6.11%
5 The a2 Milk Company Limited 5.82%
6 Z Energy Limited 5.72%
7 Ryman Healthcare Limited 5.69%
8 Ebos Group Limited 5.58%
9 Freightways Limited 5.56%
10 ANZ Cash Deposit 4.01%

The top 10 investments make up 62.55% of the fund.

Manager's comments 

Summer New Zealand Equities Fund delivered a return of 1.91% for August.

The past month was positive for the New Zealand equity market as investors digested a large number of company results. With approximately half of all results now released, the reporting season has been better than many, including ourselves, expected.

Perhaps the most impressive result in August was delivered by a2Milk. The company, which posted margins 2% ahead of forecasts, delivered operating profit growth of 159% for 2017. Forward-looking statements made by the company suggest that current growth rates will continue into 2018 and, in a sign of management confidence, the company intends to buy back NZ$40m of its own stock. a2Milk remains a core exposure of the fund.

EBOS Group was another portfolio exposure to deliver a strong full-year 2017 result this month. Underlying profits rose 9%, mildly ahead of our expectations.

Good results were also posted by Meridian, Auckland Airport, New Zealand Refining, Freightways, Skellerup and Comvita, in our view, with the latter providing additional confidence that the myrtle rust outbreak is unlikely to have a material impact on 2018 profits. Despite the generally good reporting season, a small collection of companies released disappointing results. Fletcher Building had already provided weaker guidance so the company’s profit numbers were expected. 

However, CBL Insurance provided investors with an unexpectedly poor result following actuarial calculations that required the company to increase reserves. Given the company’s geographically diverse nature, we have found it difficult to cross-check management statements. As such, an investment in CBL carries information risk, in our view, and while this has not proved costly, the company has eroded our confidence. CBL has been a profitable investment position for the fund but we are now reassessing our exposure to the company.

Lastly, our Sky Network Television exposure has been substantially reduced within the fund: the pay-tv industry is in turmoil across the globe as new entrants disrupt established business models.  


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.