Summer Investment Selection

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

Fund at a glance

Unit price (as at 30 June 2017): $1.0406

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 3.77% 0.03% 0.37% 4.89%

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 6.14%
2 Westpac Cash Deposit 3.23%
3 Kiwi Property Group Ltd 1.78%
4 Goodman Property Trust 1.71%
5 Bank of New Zealand Subordinated Note 17/12/2025 5.314% 1.69%
6 Precinct Properties NZ Ltd 1.59%
7 New Zealand Local Government Funding Agency Ltd 15/12/2017 6.00% 1.53%
8 Contact Energy Limited Commercial Paper 19/07/2017    1.36%
9 Fonterra Co-op Group Limited Commercial Paper 19/07/17    1.36%
10 Meridian Energy Limited Commercial Paper 28/07/17                 1.36%

The top 10 investments make up 21.75% of the fund.


Manager's comments

In June, global financial markets experienced a change in broad sentiment around the direction of monetary policy in major economies. The president of the European Central Bank (ECB), Mario Draghi initiated discussion about the timing of tapering its bond buying programme (quantitative easing) and also reflecting that the time for extra-ordinary monetary policy support was coming to an end. In the United States, the Fed raised rates to 1.25% at its June meeting and expressed confidence that the United States economy can absorb an additional number of rate hikes in the future along with the commencement of reducing its bloated balance sheet sometime later this year.

Global economic data printed quite strong in June with purchasing manager indexes (PMI’s) remaining at or near record levels, consistent with above-trend growth. The market reacted to the stronger data and more hawkish central bank sentiment by pushing global bond yields higher. This resulted in losses being generated in bond markets around the world in June. Equities struggled in a number of markets with the tech sector in the United States a particularly poor performer during the month.

Closer to home, the Reserve Bank of New Zealand and Reserve Bank of Australia both left rates on hold and reiterated concerns about global risks. The New Zealand and Australian central banks have both implemented macro-prudential tools to help slow the rate of credit growth in the housing market and these appear to be working so far. The housing market is slowing, particularly in the previously over-heated Auckland market and the growth in new credit is slowing markedly. This should mean cash rates stay relatively low in both New Zealand and Australia while other central banks around the world start to tighten their own monetary policies.

The Summer Investment Selection generated a flat return during the month. While positive contributions came from New Zealand and Australian equities, weaker global equities markets along with a stronger New Zealand dollar / United States dollar resulted in a negative contribution from global equities during June. Bond investments were generally flat, but outperformed the global sell-off in fixed interest due to the shorter duration strategies within the Forsyth Barr New Zealand Fixed Interest fund into which the scheme invests. Domestic listed property made a positive contribution to the monthly return.

We expect global growth to remain firm over the next 12-months. Financial conditions are still relatively easy in most countries and easier financial conditions usually lead to stronger growth with a 6-9 month lag. This bodes well for activity over the rest of the year.

The Summer Investment Selection remains positioned for an ongoing recovery in the global economy with an overweight exposure to equities and growth assets in general.


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.