Summer Australian Equities
Summer Australian Equities fund performance summary as at 31 January 2025.
Fund at a glance
Unit price (as at 31 January 2025): $2.0801
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% | 8.24% | 3.68% | 4.05% | 13.71% | 10.61% |
| 17.50% | 8.61% | 3.69% | 4.06% | 14.04% | 11.04% |
| 10.50% | 8.86% | 3.69% | 4.07% | 14.25% | 11.33% |
^ 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 42.60% 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 3.69% during January. For the 12 months to the end of January the fund delivered a return net of fees and before tax of 14.57%.
Key positive contributors to performance in January were our overweight positions in Bluescope Steel (BSL) and Karoon Energy (KAR). BSL saw a strong rebound as steel prices recovered from December lows driven by expectations of stronger demand. BSL was also seen as a potential beneficiary of US tariffs, alleviating some concerns around margin compression. KAR benefitted from stronger oil prices following supply disruptions in other key producing regions. The company reported a significant improvement in its quarterly production results, driven by increased output from its Baúna field in Brazil, and an increase to their share buyback programme.
Key detractors from performance were Viva Energy (VEA) and CSL Limited (CSL). VEA underperformed due to softer trading performance from its core fuel and convenience retail businesses. CSL lagged the market in January as market concerns regarding competitive pressures in the biotech space and the timing of key product approvals have weighed on the stock.
We actively manage your fund’s foreign currency exposures. As at 31 January 2025, these exposures represented around 98% of the value of the fund. After allowing for foreign currency hedges in place, approximately 57% of the value of the fund was unhedged and exposed to foreign currency risk.
What happened in the markets that you invest in?
The Australian equity market surged in January, led by a rally in Consumer Discretionary and Materials sectors. On the macroeconomic front, December quarter CPI came in at 2.4% YoY, with the core measure coming in a touch below expectations at 0.5% for the quarter. With other economic data painting a murky picture as to the inflation trajectory, and the labour market tight, the outcome was enough for most economists to bring forward their forecast for the Reserve Bank of Australia (RBA) to start the easing cycle from May to February.
What are we thinking about the future?
Recent data supports the case for the RBA to begin a modest easing cycle over the course of 2025. With continued momentum in the labour market, income growth from tax cuts and inflation largely under control, Australia is likely to return toward trend GDP growth by the end of the year. This should support increased household spending. Therefore, the fund has lifted exposure to selected names in the consumer discretionary space that are expected to benefit from revenue and earnings growth.
Rapid developments in the AI domain suggest a very large market opportunity for software players who can leverage these models for consumer and enterprise applications. Competition will increase and there will be winners and losers, but technology sector leadership is likely to continue in 2025. We have selectively increased exposure to technology names while trimming our overweight position in the Energy sector, which has performed strongly in recent months.
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.
