Summer Global Equities
Summer Global Equities fund performance summary as at 31 October 2024.
Fund at a glance
Unit price (as at 31 October 2024): $2.1030
Date the fund started: 19 September 2016
For information on fees, see our Fees page.
For more information on the Summer Global Equities fund, read the latest quarterly fund update and the product disclosure statement.
Fund objective and strategy
See the Global Equities page for the Summary of investment objective and strategy.
Fund returns
| PIR | Total since inception (annualised) | 1 Month | 3 Month | 1 Year | 3 Years^ |
| 28% | 8.94% | 0.49% | 1.32% | 25.67% | 5.59% |
| 17.50% | 9.28% | 0.32% | 1.43% | 26.27% | 5.73% |
| 10.50% | 9.50% | 0.22% | 1.51% | 26.67% | 5.83% |
^ 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.
Top 10 investments
The top 10 investments make up 49.25% of the fund.
Manager's Commentary
What happened in the markets that you invest in?
Developed market equities posted negative returns over the month, with most major regions reporting losses. Japanese equities were the notable outlier.
Uncertainty increased into the US election, as investors traded the different potential impacts of either a Trump or Harris administration. Trump is seen as more inflationary and requiring more debt issuance, meaning post-election markets saw a strong rise in interest rates that cascaded into global interest rate markets. The Chinese equity market is at a crossroads as the positive impacts of government policy to stimulate growth are unlikely to show up in economic data for some time.
How did your portfolio perform?
Summer Global Equities delivered a return net of fees and before tax of 0.06% for the month of October.
For the 12 months to the end of October, Summer Global Equities delivered a return net of fees and before tax of 27.28%.
October was a tough month for the fund. The value investment style was uniformly weak across the globe; indeed, it was the worst month for relative performance for the fund’s value manager since the launch of the multi-manager strategy in 2022. Growth stocks outperformed their value counterparts, but still fell 1.8% over the month.
The US earnings season began in October and forward guidance from those companies reporting was mixed. Whilst positive earnings surprises were above average, they were lower than in the most recent quarters, indicating a decline in earnings momentum.
Key positive contributions came from Alphabet (Google), Salesforce, and General Motors. Alphabet’s share price rose as third-quarter sales and earnings estimates beat market estimates, driven by increasing demand for enterprise AI tools. Salesforce also continued its positive share price momentum from the previous month, thanks to strong earnings guidance for 2025 announced in September. Notably, the absence of Nvidia in our portfolio was the largest detractor from relative performance, as Nvidia's share price surged 16.9% (in NZD) for the month.
Only one of our three managers outperformed the market index during the month. Our active currency hedging modestly detracted value as the NZ dollar weakened against the US dollar.
We actively manage the fund’s foreign currency exposures. As at 31 October 2024, these exposures represented about 98% of the value of the fund. After allowing for foreign currency hedges in place, around 41% of the value of the fund was unhedged and exposed to foreign currency risk.
What are we thinking about the future?
With the Republicans (Trump) winning the US election, global markets are trying to decide how the election promises will be enacted and their full effects on the global economy and financial markets.
There are several offsetting factors. On the positive side for markets are tax cuts, improving profitability and spending power. Against that, the US government will need to borrow more, whilst trade tariffs are usually inflationary (forcing interest rates higher) and tend to lower economic growth. It is still early days, and the full impacts will not become clear for some time.
Long term history suggests that elections rarely create a financial markets narrative on their own. Our base views remain unchanged. Global monetary policy should see a continued lowering of short-term interest rates. US growth rates are still solid whilst China and emerging markets generally have some tougher issues to deal with. Valuations across markets are mixed, but we still see the large US market as modestly expensive, even with a short-term boost to growth from the Republican win.
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.
