Summer Investment Selection

Summer Investment Selection fund performance update as at 31 January 2017. 

Fund at a glance

Unit price (as at 31 January 2017): $0.9933

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 -0.63% 0.45% 1.15%

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 Summer Investment Selection page for the Summary of investment objective and strategy.

Manager's comments

After the strong run during November and December, most equity markets delivered more modest returns in January.

A more significant movement was in the currency markets with the New Zealand dollar (NZD) appreciating sharply against the United States dollar (USD) over the month. This impacted negatively on returns from the fund’s international investments due to the unhedged currency exposure.

The Summer Investment Selection generated a positive return for the month of 0.45%.

The exposure to international equities and Australian equities contributed negatively to the fund’s January performance, however, positive contributions came from the fund’s exposure to listed property, domestic fixed income and New Zealand equities.

With equity market strength tempered somewhat, fixed income markets staged a minor recovery in January, as bond yields retreated from their recent highs. The consensus view was that the late-2016 sell-off in fixed income markets was overdone while the world is still encumbered with some significant challenges – in particular very high debt levels and aging populations – both of which will impede growth and lessen inflationary pressures, in our view.

President-elect Trump became President Trump on 20th January and he immediately hit the ground running as POTUS (President of the United States) issuing a number of executive orders related to immigration, trade and deregulation. The temporary ban on immigrants from seven Muslim countries created a number of problems internally with some multinational corporations and some of the legal community openly critical of the move. We think the open dissention and questions over the constitutional validity of the move highlights the style of presidency we can expect over the next few years.  

We continue to assess that the global outlook for 2017 will very much depend on how successful or otherwise Trump will be in implementing his domestic tax reform and spending proposals. High fiscal spending is still likely to result in higher interest rates and as a consequence we see the US Federal Reserve as on-track to continue normalising monetary policy. We anticipate at least two rate hikes to official American interest rates and do not rule out more if the actual fiscal stimulus in the US is greater than we currently anticipate. Higher US interest rates in relation to global interest rates, in general, will support the USD which we expect to strengthen further this year.

Besides the domestic economic agenda already known, Trump has a wide range of foreign policy challenges ahead – curbing the nuclear ambitions of North Korea and Iran, countering China’s designs for the South China Sea and re-setting the US relationship with Russia.

While geopolitical issues are likely to create market volatility during the year ahead, we stress that it’s the economy and company earnings that will likely determine the performance of our investments over the medium term. 


For more information on the Summer Investment Selection 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.