To achieve long-term returns (before fees, taxes and other expenses) greater than MSCI ACWI Net Total Return Index, 50% hedged to the New Zealand dollar.
These investments typically have high levels of movement up and down in value.
The risk indicator is rated from 1 (low) to 7 (high). The rating reflects how much the value of the fund’s assets goes up and down (volatility). A higher risk generally means higher potential returns over time, but more ups and downs along the way. The risk indicator is based on the returns data for the five years to 30 June 2026.
| Category | % |
|---|---|
| Cash and cash equivalents | 10.00% |
| New Zealand fixed interest | 0.00% |
| International fixed interest | 0.00% |
| Total income assets | 10% |
| Australasian equities | 0.00% |
| Listed property | 0.00% |
| International equities | 90.00% |
| Total growth assets | 90% |
| Total portfolio | 100% |
Unit price (as at 31 August 2026): $2.7124
Date the fund started: 19 September 2016
| PIR | 1 Month | 3 Month | 1 Year | 3 Years^ | Total since inception^ |
|---|---|---|---|---|---|
| 28% | 1.14% | 5.02% | 15.96% | 15.13% | 9.99% |
^ Annualised
Fund returns are calculated net of fund charges, trading expenses and accrued tax for a New Zealand resident individual paying tax at the Prescribed Investor Rate identified above.
| # | Asset name | % of fund net assets |
|---|---|---|
| 1 | Nvidia Corp | 3.30% |
| 2 | Apple Inc | 3.17% |
| 3 | Microsoft Corp | 2.93% |
| 4 | Alphabet Inc-Cl A | 2.79% |
| 5 | Taiwan Semiconductor Manufacturing Co. Ltd (ADR) | 1.90% |
| 6 | BNZ Transactional Account NZD | 1.46% |
| 7 | Nordson Corp | 1.41% |
| 8 | Verizon Communications Inc | 1.31% |
| 9 | NetApp Inc | 1.24% |
| 10 | ASML Holding NV | 1.09% |
| Top 10 investments total | 20.60% | |
Summer Global Equities Portfolio Holdings
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Manager's Commentary
How did your portfolio perform?
The Global Equities Fund (the Fund) delivered a return after fees and before tax of 1.73% during August, modestly underperforming the Fund’s benchmark return of 2.16%. For the 12 months to the end of August, the Fund delivered a return after fees and before tax of 17.21%, underperforming its benchmark return of 22.14%. Both our global managers lagged the broader market during August. The biggest contributors for our minimum-volatility manager were Microsoft, Mixi and LG Electronics, which saw further positive price reactions following their initial earnings surprises in July. For the Global Factors Portfolio, the top contributors were software stocks Adobe, Autodesk and Intuit, which rebounded after the "SaaSacre" sell-off earlier this year driven by fears around AI disruption. Travel-platform stocks such as Airbnb and Expedia also improved on expanding margins. Not owning Palantir and Salesforce detracted for both managers.
We actively manage the Fund’s foreign currency exposures. During the month, the New Zealand Dollar rose against the US Dollar and Japanese Yen but traded flat with the Euro. Active hedging added to overall portfolio performance.
What happened in the markets you invest in?
Global equity markets rebounded in August following July's sell-off, supported by healthy corporate earnings growth. Gains were broad-based, with developed markets rising 2.6% and emerging markets up 3.4%. Value and growth stocks both returned 2.6% over the month.
Within technology, gains broadened across semiconductor and hardware stocks, while the software-as-a-service (SaaS) sector led performance. Strong earnings helped ease concerns that AI could undermine the sector's long-term growth outlook, reversing some of the sharp declines seen during the earlier "SaaSacre" sell-off.
US equities continued to advance, with the S&P500 rising 2.0% in local currency terms. The rally was supported by earnings that exceeded expectations and improved market breadth, with a broader range of stocks contributing to returns. Economic data also remained supportive, as payroll growth exceeded forecasts and unemployment stayed low. Markets are now pricing in two further Federal Reserve rate hikes by year-end, although much of this expectation has already been reflected in longer-term bond yields.
What are we thinking about the future?
August reporting season produced one of the biggest earnings booms in US market history. S&P 500 earnings rose 31% last quarter with the trailing one-year growth rate ranking in the all-time top 20%, posting a growth rate not seen since the 1900s. Markets were driven by company specific announcements rather than macro drivers.
Our managers remain diversified and disciplined. They do not heavily tilt towards momentum or deep value, instead backing company fundamentals whilst controlling for risk. In markets, trends can go much further than you think in the short term, hence why diversification, rather than large single stock or thematic concentration, is the best way to manage risk in our view.
The Global Factors Portfolio continues to overweight software stocks, selected for their attractive valuations, strong free cash flow generation, consistent growth and positive price trends. At the peak of the AI sell off early this year, these stocks collectively offered free cash flow yields above 9%, more than double the average large-cap stock.
*The benchmark for the fund is the MSCI ACWI Net Total Return Index, 50% hedged to the NZ dollar.