Summer Investment Selection

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Summer Investment Selection fund performance summary as at 31 October 2017. 

Fund at a glance

Unit price (as at 31 October 2017): $1.1119

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 Months1 Year
Fund 10.54% 3.02% 5.61% 5.12% 12.52%

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 4.93%
2 Westpac Cash Deposit 2.30%
3 Citibank Cash Deposit 1.80%
4 Bank of New Zealand Subordinated Note 17/12/2025 5.314% 1.59%
5 Facebook Inc.- A 1.54%
6 New Zealand Local Government Funding Agency Ltd 15/03/2019 5.00% 1.48%
7 NIKE, Inc. 1.47%
8 New Zealand Local Government Funding Agency Ltd 15/12/2017 6.00% 1.45%
9 Precinct Properties New Zealand Limited 1.42%
10 Goodman Property Trust 1.39%

The top 10 investments make up 19.37% of the fund.


Manager's comments

The Summer Investment Selection delivered a return of 3.02% return for October.

October was a ‘goldilocks’ month for financial markets. Interest rates fell, equity markets rose and market risks such as geopolitical concerns abated. Economic data continued to print stronger than expected. It’s becoming clear to us that global investors have underestimated the strength and breadth of the current global economic recovery, perhaps extrapolating too far the very weak data that has been the case since the global financial crisis.

While it's too early to announce that the global economy has repaired itself, it does seem apparent that many of the building blocks for strong coordinated growth are emerging – stronger banking balance sheets and an appetite to lend, deleveraged households with the next generation of house buyers emerging, low and stable energy prices providing stability to real incomes and inflation and rising confidence by small and medium businesses around the world to take on risk and expand their activities. While stronger economic activity is boosting forward earnings for many companies around the world, underpinning rising equity valuations, the uncertainty around the policies of the new minority coalition government in New Zealand resulted in a weaker New Zealand dollar during the month.

For New Zealand investors, the weaker dollar impacted positively on returns from offshore markets with the New Zealand dollar falling over 5% during the months and the New Zealand dollar/Australian dollar cross rate falling over 3%. Global and Australian equity markets performed strongly during October, taking into account the positive surprises in economic data. With currency gains included, the overall return to New Zealand investors from unhedged offshore exposures was a major contributor to returns last month.

Positive contributions to the fund’s performance this month came from all asset classes, with Australian and global equities being the key contributors.

The global outlook remains positive with the best level of synchronised growth around the world post the global financial crisis. Monetary conditions remain stimulatory and growth is being boosted by cheaper energy costs and the positive wealth effect from the strong financial market returns over the past few years. Economic growth tends to lag monetary conditions by 6-9 months and so the outlook for the next 12 months still looks positive. While inflation remains moderate around much of the developed world, surplus capacity is diminishing and higher pricing pressures may still emerge next year. We still expect central banks to continue the normalisation of monetary policy in a gradual manner but this will keep the pressure on interest rates and returns from fixed interest investments.

While the risks from an existential event such as geopolitical (North Korea) remain constant, the concerns from such event type risk diminished last month. But looking forward our investment strategy remains focussed on the underlying fundamentals of the business cycle which continue to improve and remain positive.


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.