Summer Investment Selection

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

Fund at a glance

Unit price (as at 31 December 2017): $1.1259

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

 Annualised total since inception1 Month3 Months1 Year
Fund 9.27% 0.06% 4.22% 13.03%

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 Target Investment Mix

Summer Investment Selection Allocated %
New Zealand cash 10%
New Zealand fixed interest 25%
International equities 0%
New Zealand equities 12.5%
Australian equities 12.5%
Listed property 8%
International equities 32%
Total 100%

We have chosen the above target investment mix for Summer Investment Selection. This can move in line with market movements and we review the portfolio and adjust asset allocation accordingly. The date of the last review was 14/09/2017.

Top 10 investments

  Asset name % of fund net assets
1 ANZ Cash Deposit 7.73%
2 New Zealand Local Government Funding Agency Ltd 15/03/2019 5.00% 2.72%
3 Westpac Cash Deposit 2.43%
4 Bank of New Zealand Subordinated Note 17/12/2025 5.314% 1.55%
5 NIKE, Inc. 1.44%
6 Precinct Properties New Zealand Limited 1.41%
7 Goodman Property Trust 1.39%
8 Kiwi Property Group Limited 1.34%
9 New Zealand Local Government Funding Agency Ltd 15/04/2023 5.50% 1.33%
10 Facebook Inc.- A 1.30%

The top 10 investments make up 22.64% of the fund.


Manager's comments

Fund Performance

The Summer Investment Selection delivered returns of 0.06% for the month, 4.22% for the three months to December and 13.03% for the year.

Market Commentary

The last quarter of 2017 was a ‘goldilocks’ period for financial markets. Interest rates fell, equity markets rose and market risks such as geopolitical concerns abated. Economic data continued to print stronger than we expected. It seems apparent to us that global investors have underestimated the strength and breadth of the current global economic recovery, perhaps extrapolating the concerns expressed repeatedly by global central banks over the last few years.

We believe that many of the building blocks for strong coordinated growth have emerged – 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. It is our view that stronger economic activity is boosting forward earnings for many companies around the world, underpinning rising equity valuations. While the New Zealand dollar fell in the early part of the quarter mainly due to political uncertainty following the change in government, the local currency appreciated during the last month of the year to end the quarter only slightly weaker compared to three months earlier.

Portfolio Positioning

For New Zealand investors, the slightly weaker New Zealand dollar impacted positively on returns from offshore markets. Global and Australian equity markets performed very strongly during the quarter, 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. The major contributor to investment performance over the quarter came from Australian equities followed by listed property and New Zealand equities.


We believe that the global outlook remains positive with the best level of synchronised growth around the world since before the Global Financial Crisis. Fundamentals remain strong all round the world including labour market strength, consumer sentiment, business optimism, CEO survey’s, manufacturing and non-manufacturing PMI’s and of course the impact of tax reform in the US. Geopolitical risks have diminished since late last year, in our view, with South and North Korea seemingly undertaking meaningful dialogue and the earnings outlook for companies around the world continues to signal further growth in profits.

While remaining positive about the medium-term outlook for the markets, the stronger the markets perform, the higher the risks grow. We would get concerned if the employment or labour markets turned weaker, signalling earnings recessions for some companies or sectors. We are also watching interest rates closely, and any sign that inflation is making a comeback. And thirdly, commodity prices are always a good indicator of underlying fundamentals. A sharp downturn in commodity prices
(not just one or two commodities) would indicate to us that the current global cycle had reversed and demand was softening. This would have an impact on earnings and valuations and be a reason to adopt a more conservative asset allocation with investment portfolio.

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.