Summer Global Equities
Summer Global Equities fund performance summary as at 30 November 2024.
Fund at a glance
Unit price (as at 30 November 2024): $2.1575
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% | 9.17% | 2.53% | 3.79% | 21.56% | 6.20% |
| 17.50% | 9.52% | 2.56% | 3.73% | 21.90% | 6.43% |
| 10.50% | 9.75% | 2.58% | 3.70% | 22.12% | 6.58% |
^ 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 48.69% of the fund.
Manager's Commentary
What happened in the markets that you invest in?
We have seen a positive reaction in US equities to the Trump election win, driven by pro-business policies such as tax cuts, reduced regulations and tariffs helping local producers. Asian markets were weaker due to the potential negative impact of tariffs on the region and their relatively fragile economies. Despite a clear win for the Republicans in the US election, there is still a degree of uncertainty about US domestic and foreign policy and how countries outside of the US will respond to changes.
Currently, the US equity market makes up about two-thirds of the MSCI All-Country World Equity Index. The strong outperformance of US stocks over other regions has negatively affected the fund's performance as our managers see better value in Europe and Japan. The so-called "Magnificent Seven" stocks are once again dominating market performance. In November, these seven stocks contributed to a quarter of the market index return. Our managers are underweight these stocks on valuation concerns, further hurting near term relative performance.
US outperformance has coincided with underperformance in the "value" and "low risk" style factors, while the "momentum" and "growth" style factors have shown significant outperformance. We have exposure to the growth style via two of our managers, it is less than that contained in the market index.
In local currency terms, the US, Singapore and German markets were positive whilst China, South Korea and Japan all posted negative returns for November.
How did your portfolio perform?
Summer Global Equities delivered a return net of fees and before tax of 2.60% for the month of November.
For the 12 months to the end of November, Summer Global Equities delivered a return net of fees and before tax of 22.46%.
All three investment managers underperformed compared to the market index; the first time this has happened since we moved to a multimanager strategy in 2022.
The US dollar continued upwards, hurting the fund’s New Zealand dollar hedged return. We actively manage the fund’s foreign currency exposures. As at 30 November 2024, these exposures represented about 98% of the value of the fund. After allowing for foreign currency hedges in place, around 39% of the value of the fund was unhedged and exposed to foreign currency risk.
What are we thinking about the future?
Whilst US economic growth continues to be robust, we think that growth expectations are already more than reflected in market valuations with trading multiples of 22x forward earnings for the US versus 13x in Europe and 12x in emerging markets. Economic recovery outside of the US, on the back on interest rate cuts, further supports our managers’ favouring those regions. The high weighting of the US economy in the market index sees us cautious on global equity market returns generally.
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.
