Summer Conservative Selection
Summer Conservative Selection fund performance summary as at 31 March 2025.
Fund at a glance
Unit price (as at 31 March 2025): $1.2006
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% | 2.63% | -1.05% | -0.59% | 3.16% | 2.73% |
| 17.50% | 2.89% | -1.03% | -0.49% | 3.62% | 3.07% |
| 10.50% | 3.06% | -1.01% | -0.42% | 3.92% | 3.29% |
^ 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 | 24.19% |
| 2 | ANZ transactional bank account | 4.31% |
| 3 | Intermede Global Equity Fund | 3.90% |
| 4 | New Zealand Government 1.5% 15/05/2031 | 2.50% |
| 5 | New Zealand Government 4.50% 15/05/2030 | 2.40% |
| 6 | New Zealand Government 14/04/2033 3.5% | 1.92% |
| 7 | New Zealand Government 15/05/2028 0.25% | 1.74% |
| 8 | New Zealand Government 3% 20/04/2029 | 1.64% |
| 9 | New Zealand Government 4.50% 15/04/2027 | 1.55% |
| 10 | Precinct Properties New Zealand Limited | 1.34% |
The top 10 investments make up 45.49% of the fund.
Manager's Commentary
How did your portfolio perform?
The Summer Conservative Selection (the fund) delivered a return net of fees and before tax of -0.99% for the month of March. For the 12 months to the end of March the fund delivered a return net of fees and before tax of 4.39%.
For March the gross returns of all underlying funds utilised within the Summer Conservative Selection, except for the Listed Property Fund, outperformed their respective benchmarks. For details on the fund’s investments into each of the underlying asset classes, see the relevant commentary.
We actively manage the fund’s foreign currency exposures associated with Global, Australasian and listed property equities and hedge the international fixed interest segment of the fund. The New Zealand dollar fell 1.07% against the United States dollar and rose 0.87% against the Australian dollar during the month.
What happened in the markets you invest in?
The new US government’s trade policy drove equity markets in March with investors moving money from equity markets into the defensive asset classes of cash and fixed interest ahead of the April “Liberation Day” announcement. While many in markets still see the US tariffs as a negotiating tool for other political concessions, in our view the impacts on inflation and growth will be real for as long as the tariffs remain in place.
Most economists predict that the tariffs will lower growth outside of the US more than it will inside. This is based on how reliant a country is on exports versus internally generated economic activity. The US has a very large domestic economy but surprisingly its share market has performed poorly - perhaps reflecting it is starting from what we consider to be an expensive valuation.
New Zealand (NZ) and Australia have relatively low direct exposure to US tariffs, but both will still see growth slow, especially unhelpful in NZ as we slowly emerge from a recession.
What are we thinking about the future?
Recent U.S. tariff announcements were significantly higher than expected, prompting a swift and sharp decline in global equity markets. This reaction has increased the likelihood of a global economic slowdown. We believe that if clear signs of economic weakness emerge, policy settings will likely be eased over the next 18 months—particularly as recessions often lead to political changes.
The Octagon Investment Committee meets regularly and monitors markets on a daily basis, holding additional meetings when market conditions warrant. On 7th April, the Committee met to assess recent developments and evaluate whether the sharp decline in equity markets had made them fundamentally more attractive. The Committee also considered whether it should revisit its long-standing underweight position in global equities, choosing to maintain its current position.
The Committee acknowledges that the U.S. led trade war is driving down global equity market values. However, there remains a significant risk of further escalation. China has already responded with retaliatory tariffs, and similar action from Europe is expected. In the Committee’s view, these developments are likely to have a negative impact on global economic growth and corporate earnings. As a result, despite recent declines in share prices, equity markets may not offer as much underlying value as they might initially seem to.
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.
