Summer Australian Equities
Summer Australian Equities fund performance summary as at 28 February 2025.
Fund at a glance
Unit price (as at 28 February 2025): $2.0009
Date the fund started: 19 September 2016
For information on fees, see our Fees page.
For more information on the Summer Australian Equities fund, read the latest quarterly fund update and the product disclosure statement.
Fund objective and strategy
See the Australian 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% | 7.66% | -3.84% | -2.90% | 8.41% | 8.12% |
| 17.50% | 8.03% | -3.82% | -2.90% | 8.66% | 8.52% |
| 10.50% | 8.28% | -3.81% | -2.91% | 8.82% | 8.79% |
^ 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 42.46% of the fund.
Manager's Commentary
How did your portfolio perform?
Summer Australian Equities (the fund) delivered a return net of fees and before tax of -3.80% during February. For the 12 months to the end of February the fund delivered a return net of fees and before tax of 9.06%.
Key positive contributors to performance in February were our overweight positions in Light & Wonder, which produces games for the wagering industry. The shares outperformed in February with continued success in new product and game launches, completion of a US acquisition and continuation of its share buyback programme. Bluescope Steel performed well, shares climbing after US domestic steel prices responded positively to tariffs, new steel up 40% and scrap prices up 20%. This has led to rising steel spreads and improved gross margins for Bluescope’s US based production.
Key detractors from performance in February included our overweight positions in Viva Energy, which fell sharply at its half year result on weaker profits and a soft outlook for the year. The company has struggled with challenging retail trading, weaker fuel margins and the slow pace of OTR store conversions. Integral Diagnostics also detracted after it delivered a soft first half result. After a tough couple of years, the company delivered some revenue and earnings growth, but this was below market expectations. Clinical labour costs were again called out as a key driver with few solutions near term.
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 54% of the value of the fund was unhedged and exposed to foreign currency risk. During the month the NZD fell -0.58% against the Australian dollar (AUD).
What happened in the markets that you invest in?
The Australian equity market fell in February, with the sharpest declines in the Technology and Healthcare sectors. Employment data for January showed fairly robust jobs growth with the unemployment rate sitting at 4.1%, below Reserve Bank of Australia (RBA) estimates of full employment. The key message being that the labour market remains tight, however the RBA began its cutting cycle, reducing the cash rate target from 4.35% to 4.1% at the February meeting.
Reporting season was mixed with weaker operating results seen in Healthcare, Banks and Energy companies, offset by stronger profits and guidance across Industrials and Financial stocks. Despite expectations the worst is likely behind us economically, there were few signs that firms expect strong profit growth in the near term.
What are we thinking about the future?
Employment remains strong, with interest rates now expected to move modestly lower over the course of 2025. Household incomes are robust and, with inflation tamed, are expected to grow in real terms. After a recent soft patch, economic growth is expected to pick up over the balance of the year.
This backdrop of modest earnings growth is at odds the premium valuation of the Australian market versus its long run trend. We are proceeding cautiously and focus our attention on pockets of the market where relative value is offered.
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.
