Summer New Zealand Equities
Summer New Zealand Equities fund performance summary as at 31 May 2025.
Fund at a glance
Unit price (as at 31 May 2025): $1.7123
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 and the product disclosure statement.
Fund objective and strategy
See the New Zealand Equities page for the Summary of investment objective and strategy.
Fund returns
| PIR | Total since inception (annualised) | 1 Month | 3 Month | 1 Year | 3 Years^ |
| 28% | 6.39% | 4.32% | -1.79% | 3.50% | 2.24% |
| 17.50% | 6.74% | 4.32% | -1.68% | 3.86% | 2.60% |
| 10.50% | 6.98% | 4.31% | -1.60% | 4.10% | 2.84% |
^ Annualised
Fund returns are calculated net of fund charges, trading expenses and accrued tax for a New Zealand resident individual paying tax at the Prescribed Investor Rate identified above.
Top 10 investments
The top 10 investments make up 62.09% of the fund.
Manager's Commentary
How did your portfolio return?
Summer New Zealand Equities (the fund) delivered a return net of fees and before tax of 4.31% over May. For the 12 months to the end of May the fund delivered a return net of fees and before tax of 4.46%.
Positive attribution came from our overweight positions in Napier Port, Tower and Sky TV. Napier Port and Tower reported strong profit results and talked positively of the period ahead, whilst Sky Tv rallied on little direct news flow.
Our overweight in Sky City Entertainment was by far the largest detractor to the fund’s performance. We have held this position for some time, and it is yet to deliver the return we expect from it. This month the company downgraded earnings as spend per visitor remains weak. With another regulatory fine and the introduction of mandatory carded play to come in July, the market is questioning whether an equity raise is required to sure up the balance sheet. We think they have other non-core assets they can sell to avoid an equity raise.
What happened in the markets that you invest in?
May includes a small reporting season for NZ companies. There were some notable “beats” versus expectations from Sanford, Turners Automotive and Tower, but overall results and guidance were slightly disappointing, with more earnings downgrades than upgrades to future years profits. The Contact Energy takeover of Manawa was approved during the month. Whilst strategically sound, the price paid looks full to us.
Tariff announcements continued to dominate global news. Some agreements appear to have been reached and underlying economic data over April and May appears to be holding up well, but significant uncertainty remains.
What are we thinking about the future?
The New Zealand Budget delivered few surprises, signalling a gradual reduction in government support as the coalition aims to restore fiscal balance. Global demand has so far remained resilient despite ongoing tariff uncertainty, though the longer-term outlook is still unclear. May profit results showed that most domestically focused companies have yet to recover meaningfully, but trading conditions are no longer deteriorating.
We continue to see value in domestic and cyclical businesses, where current market pricing appears too focused on near-term weakness rather than the potential for recovery. That recovery, however, has been slower than we anticipated, largely due to persistent cost-of-living pressures and subdued employment confidence. While interest rate cuts, modest wage growth, and tax relief have provided some support, these have been offset by rising mortgage rates, insurance premiums, and food costs. In this environment, uncertainty around job security has encouraged households to prioritise saving over discretionary spending.
Our investment positioning remains unchanged. Although the recovery is taking longer to materialise, key supports are in place. Interest rates are falling, inflation in insurance costs should ease, and unemployment is likely nearing its peak. While global conditions remain challenging, we believe domestic factors are sufficient to support a modest economic recovery beginning later this year.
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.
