Summer Investment Selection

Summer Investment Selection fund performance update as at 30 April 2017. 

Fund at a glance

Unit price (as at 30 April 2017): $1.0534

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

Fund returns

 Total since inception1 Month3 Months6 Months
Fund 5.16% 1.72% 5.82% 7.04%

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 ANZ Cash Deposit 6.13%
2 NZ Local Government Funding Agency Ltd 15/12/2017 6.00% 3.93%
3 Westpac Cash Deposit 3.42%
4 Kiwi Property Group 1.82%
5 Goodman Property Trust 1.69%
6 Precinct Property NZ 1.58%
7 Citibank Cash Deposit 1.45%
8 Fonterra Co-op Group Ltd RCD 19/04/17    1.40%
9 Contact Energy Limited RCD 19/04/2017    1.39%
10 Facebook Inc 1.33%

The top 10 investments make up 24.14% of the fund.

Manager's comments

April continued the recent run of positive performances from most asset classes with both equities and fixed income investments contributing positively to the monthly performance. While investor confidence has shifted down a gear over the past month or so, financial market prices have been relatively stable.

Disappointment with President Trump is a big part of the story regarding declining investor confidence. Many investors were hoping the new United States (US) administration would pass major tax reform quickly, unleashing a powerful Government stimulus by the latter part of the year. But having failed to repeal Obamacare, Congress is struggling to agree a fiscal deal. Major tax cuts now seem unlikely before 2018, with a final fiscal package also likely to be much smaller than the President had promised. This has clearly undermined investor confidence in recent weeks, working against the much touted reflation trade.

The Summer Investment Selection generated a positive return during the month, up 1.72%. The largest contributors to the return were allocations to global and Australian equities. Members of the Summer Investment Selection will recall that we recently made some asset allocation changes including increasing our exposure to global and Australian equities.

New Zealand equities and listed property also made positive contributions. Fixed income investments generated positive returns as bond yields fell around the world in response to investors becoming less confident about the likely implementation of President Trump’s policies.

The New Zealand dollar (NZD) weakened against the United States Dollar (USD) as well as the Great British Pound and the Euro. As the investments in international equities remain unhedged, the weaker NZD boosted returns from these sectors over the month.

Global equities were boosted in April by the start of Q1 reporting season result indicating a recovery in earnings in most sectors. The energy sector has bounced back after a tough couple of years while the technology sector continues to generate strong earnings growth. Global trade has also shown signs of recovery and this has boosted manufacturing levels in Europe and China in particular.

While first quarter Gross Domestic Product (GDP) data in the US was relatively weak, this is often the case due to seasonality distortions. Outside the US, economic activity has continued to improve. The world economy is seeing an increasingly robust and broad-based expansion, with both the Euro area and China growing faster than their underlying growth potential.

The United States Federal Reserve continues to signal further rate hikes in the US this year as capacity constraints threaten inflation targets. At the same time, the RBNZ forecasts no change to our Official Cash Rate (OCR) until 2019. This converging of interest rate differentials is likely to see the NZD weaken further against the USD and other major currencies. This currency outlook supports our current asset allocation weighting biased towards international equities.


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.