Summer Conservative Selection
Summer Conservative Selection fund performance summary as at 30 November 2024.
Fund at a glance
Unit price (as at 30 November): $1.2061
Date the fund started: 8 April 2019
For information on fees, see our Fees page.
For more information on the Summer Conservative Selection fund read the latest quarterly fund update and the product disclosure statement.
For the current tactical asset allocation and date of most recent review, please go to the Summer Conservative Selection page.
Fund objective and strategy
See the Summer Conservative Selection 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% | 2.90% | 1.04% | 1.31% | 8.76% | 2.32% |
| 17.50% | 3.16% | 1.11% | 1.39% | 9.41% | 2.61% |
| 10.50% | 3.33% | 1.15% | 1.43% | 9.85% | 2.81% |
^ 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
| Asset name | % of fund net assets | |
| 1 | Hunter Global Fixed interest Fund | 25.00% |
| 2 | ANZ transactional bank account | 5.25% |
| 3 | Intermede Global Equity Fund | 3.95% |
| 4 | New Zealand Government 4.50% 15/05/2030 | 2.57% |
| 5 | New Zealand Government 1.5% 15/05/2031 | 2.07% |
| 6 | New Zealand Government 14/04/2033 3.5% | 1.69% |
| 7 | New Zealand Government 3% 20/04/2029 | 1.68% |
| 8 | New Zealand Government 4.50% 15/04/2027 | 1.66% |
| 9 | New Zealand Government 15/05/2028 0.25% | 1.58% |
| 10 | New Zealand Government 15/05/2032 2.00% | 1.39% |
The top 10 investments make up 46.82% of the fund.
Manager's Commentary
What happened in the markets you invest in?
It was a strong month for Global equity markets, led by the US with President-elect Trump being seen as positive for business and growth. Asian markets were generally much weaker as they will endure the worst of any proposed tariff increases from a Trump presidency and already have generally weaker economies.
Political upheaval continues with France and South Korea also facing political crises whilst armed conflicts in the Ukraine and Middle East continue. For now, markets are seeing these events as not material for market returns but we continue to watch for escalation.
For further information on each of the single asset class funds used by the Summer Conservative Selection, refer to the relevant single asset class fund commentary.
How did your portfolio perform?
The Summer Conservative Selection delivered a return net of fees and before tax of 1.22% for the month of November.
For the 12 months to the end of November, the Summer Conservative Selection delivered a return net of fees and before tax of 10.51%.
Of the funds utilised within the Summer Conservative Selection, all our equity funds bar the Listed Property Fund underperformed their respective market indices, whilst our cash and fixed interest funds bettered their market indices. For further information on each of the single asset class funds used by the Summer Conservative Selection, refer to the relevant single asset class fund commentary.
We actively manage the fund’s foreign currency exposures associated with global and Australian equities and hedge foreign currency exposures associated with global bonds. As of 30 November 2024, these exposures represented around 17% of the value of the fund. After allowing for foreign currency hedges in place, approximately 7% of the value of the fund was unhedged and exposed to foreign currency risk. The NZ dollar, relevant for our portfolios with unhedged foreign currency exposures, rose 0.60% against the US dollar, and 0.06% against the Australian dollar.
What are we thinking about the future?
Of the investment markets your fund invests in, we see better than average returns available in listed property and NZ equities, and below average returns from international equities. Again, we need to separate our view on valuations from the underlying economy. For listed property and NZ equities, we think improving outlooks for earnings supported by falling interest rates are not reflected in market valuations. For international equities, the key US economy continues to be robust, but we think that backdrop is more than reflected in market valuations. The potential introduction of trade tariffs, along with US growth and budget deficits, could lead to a temporary rebound in inflation which would negatively impact returns in fixed interest and listed property.
The Octagon investment committee met recently and maintained our overweight exposure (versus strategic asset allocation) to listed property, and New Zealand equities, funded with an underweight position to Australian equities and cash. The Australian economy is performing solidly with government spending and tax cuts supportive, but interest rates have little room to fall, and valuations are full. The committee also chose to increase our exposure to NZ fixed interest as inflation continues to fall, funded from international fixed interest where US inflation may stop falling on the back of tax cuts, tariffs and higher government borrowing.
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.
