Summer Global Equities
Summer Global Equities fund performance summary as at 28 February 2025.
Fund at a glance
Unit price (as at 28 February 2025): $2.2470
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% | 9.49% | 0.18% | 4.71% | 16.36% | 10.08% |
| 17.50% | 9.80% | 0.20% | 4.51% | 16.37% | 10.20% |
| 10.50% | 10.01% | 0.21% | 4.38% | 16.37% | 10.27% |
^ 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 48.28% of the fund.
Manager's Commentary
How did your portfolio perform?
Summer Global Equities (the fund) delivered a return net of fees and before tax of 0.22% for the month of February. For the 12 months to the end of February the fund delivered a return net of fees and before tax of 16.37%.
Unlike recent months, European and emerging markets outperformed the US, including the "Magnificent 7" large-cap stocks.
Our investment managers had mixed results. Our low-volatility manager Te Ahumairangi outperformed, as growth stocks declined due to economic concerns and falling bond yields boosted defensive stocks. The WMR Model Portfolio, a global growth thematic portfolio, benefited from investments in consumer staples and healthcare, including Nestlé, Siemens, and Heineken. Finally, our GARP manager Intermede underperformed due to the sell-off in tech and semiconductor stocks, including Taiwan Semiconductor, Broadcom, and Salesforce. New US tariffs on high-tech exports to China negatively impacted these stocks.
We actively manage your fund’s foreign currency exposures. As at 28 February 2025, these exposures represented around 99% of the value of the fund. After allowing for foreign currency hedges in place, approximately 38% of the value of the fund was unhedged and exposed to foreign currency risk. The NZ dollar fell -0.88% against the US dollar and -3.5% against the yen, where we hold an underweight position.
What happened in the markets that you invest in?
U.S. markets declined in February, giving up some of their year-to-date gains. Equities weakened while long-term interest rates fell, driven by the tension between slowing growth and negative inflation surprises. Growth momentum declined in February, but inflation remained high. The market has now priced in two interest rate cuts this year, up from one last month.
The latest U.S. earnings season was strong; average year-on-year EPS growth to the end of Q4 2024 was up 14.2% and more than two thirds of companies positively surprised. Interestingly, forecasts for 2025 earnings have been revised down modestly since August 2024, and despite the February beat, that trend has continued.
European stocks continued to rise, with renewed optimism around domestic production and earnings recovery. Asian markets performed well, driven by a rally in Chinese tech stocks. Enthusiasm around Japanese equities fell as the yen appreciated by 2.8% against the US dollar.
What are we thinking about the future?
The new U.S. government swiftly introduced major policy changes, both domestically and internationally. While U.S. policies and geopolitical tensions dominated headlines, economic data revealed signs of weakness, particularly in consumer confidence and investor sentiment. However, government messaging has been unclear, frequently revised, and sometimes contradictory, contributing to increased market volatility.
The Global Equities Fund is underweight U.S. equities, where high valuations leave little room for earnings disappointment. Other markets offer better value but would also be impacted by widespread tariffs, which typically raise prices and slow growth. If February’s trends persist, our managers may reassess U.S. stock valuations more favourably.
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.
