Summer Investment Selection

Summer Investment Selection fund performance summary as at 30 September 2018. 

Fund at a glance

Unit price (as at 30 September 2018): $1.2055

Date the fund started: 19 September 2016

For information on fees, see our Fees page.

For more information on the Summer Investment Selection fund, read the latest quarterly fund update or the product disclosure statement

Fund objective and strategy

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

Fund returns

 Annualised total since inception1 Month3 Months1 Year
Fund 9.08% 0.09% 2.90% 10.98%

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%). 

Tactical asset allocation

Summer Investment Selection Allocated %
New Zealand cash 5%
New Zealand fixed interest 31%
International fixed interest 0%
New Zealand equities 12.5%
Australian equities 12.5%
Listed property 10%
International equities 29%
Total 100%

We have chosen the above tactical asset allocation for Summer Investment Selection as at 29 August 2018. This can move in line with market movements and we review the portfolio and adjust asset allocation accordingly. For the current target investment mix and date of most recent review, please go to the Summer Investment Selection page.

Top 10 investments

  Asset name % of fund net assets
1 ANZ Cash Deposit 7.14%
2 New Zealand Local Government Funding Agency Ltd 15/04/2025 2.75% 2.17%
3 Kiwi Property Group Limited 1.72%
4 Precinct Properties New Zealand Limited 1.48%
5 Goodman Property Trust 1.39%
6 Bank of New Zealand Subordinated Note 17/12/2025 5.314% 1.34%
7 BHP Billiton Limited 1.26%
8 Housing New Zealand 3.36% 12/06/2025 1.25%
9 Johnson & Johnson 1.19%
10 NIKE, Inc. 1.17%

The top 10 investments make up 20.11% of the fund.

Manager's comments

Market Commentary

The third quarter of 2018 was eventful from a political and ‘wall of worry’ perspective but yet investment returns remained positive, in our view. As the trade war between the United States (US) and China deepened and politicians around the world teetered towards nationalist rather than globalist policies investors would have been right to be concerned about the state of the global economy. Overlaying the longer term changes in political directions were the immediate worries around Brexit, surging oil prices, volatile currencies and widening trade disputes. Considering all these issues, investment returns remained positive during the quarter as the business cycle, particularly in the developed economies remained intact. We believe that employment growth remains robust, household incomes will continue to grow and business profits will continue to expand. This boosts the confidence around equity valuations as the outlook for earnings continues to remain robust.

Portfolio Positioning

The New Zealand dollar continues to act as a buffer against volatile global conditions with a weaker currency boosting returns from our offshore investments as these positions remain unhedged. The New Zealand dollar fell over -2.0% against the United States dollar during the quarter with returns from international equities contributing 4.83% for the three months. The other major positive attributions over the investment period came from New Zealand equities and listed property. Both of these sectors benefited from the ‘lower for longer’ consensus for New Zealand interest rates as business confidence plummeted to levels not seen since the Global Financial Crisis.

Positioning for these increased risks remains a challenge. We continue to remain invested in global equities on an un-hedged basis as the New Zealand dollar will continue to act as a stabiliser in any global trade fallout. Our global exposure remains dominated by US centric investments as the US economy is less exposed to the risks of a trade war. It remains the largest and most flexible economy in the world and should continue to dominate the profit cycle over the next year or so. While global interest rates are expected to continue rising as the US and other major central banks gradually normalise monetary policies, local interest rates should remain anchored as credit demand slows and economic growth splutters absent decisive and positive growth orientated policy announcements from the coalition government.


The global outlook remains challenging, in our view. The New Zealand business cycle looks mature to us as immigration peaks, restrictions on foreign investment are now in place and higher wage and energy costs impinge on both household and corporate cash flows. The risks to the global economy have increased as the tit-for-tat tariffs from the US and China continues. Global manufacturing is still expanding which is supporting ongoing strength in labour markets but we are more cautious of the trade dispute escalating as the year progresses. Trade wars are naturally destructive for global growth.

We actively manage the fund’s foreign currency exposures. As at 30 September 2018, these exposures represented 40.52% of the value of the fund and were unhedged.



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.