Summer Global Fixed Interest
Summer Global Fixed Interest fund performance summary as at 30 November 2024.
Fund at a glance
Unit price (as at 30 November 2024): $1.1318
Date the fund started: 19 September 2016
For information on fees, see our Fees page.
For more information on the Summer Global Fixed Interest fund read the latest quarterly fund update and the product disclosure statement.
Fund objective and strategy
See the Global Fixed Interest 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% | 1.20% | 0.98% | 0.57% | 4.93% | -0.26% |
| 17.50% | 1.56% | 1.12% | 0.65% | 5.67% | 0.03% |
| 10.50% | 1.80% | 1.22% | 0.71% | 6.16% | 0.22% |
^ 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 | 96.21% |
| 2 | ANZ transactional bank account | 3.79% |
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The top ten investments make up 100.00% of the fund.
Manager's Commentary
What happened in the markets that you invest in?
November was a positive month, in general, for international fixed interest investors.
Broadly speaking, international fixed interest markets recovered October’s losses post the outcome of the US parliamentary elections.
Notwithstanding the risk of reflationary policies, as touted by the new US administration, investors elected to focus on the here and now, shifting focus back to the likely continuation of the cutting of official interest rates, globally.
The resultant move lower in term interest rates and bond yields delivered capital gains to investors in Summer Global Fixed Interest.
How did your portfolio perform?
Summer Global Fixed Interest delivered a return after fees and before tax of 1.36% during November, and for the 12 months to the end of November Summer Global Fixed Interest delivered a return after fees and before tax of 6.90%.
Apart from a small holding of directly held New Zealand dollar cash (typically 5%, in line with the fund’s target allocation to cash) Summer Global Fixed Interest’s investment exposure is through its investment in the Hunter Global Fixed Interest Fund, a multi-rate PIE fund hedged to the New Zealand dollar. PIMCO Australia Pty (PIMCO) is the investment manager.
What do we think is going to happen in the next few months?
PIMCO are well set, in our opinion, playing a patient game in anticipation of an on-going easing of global monetary policy.
With an expectation that the yield curve will continue to normalise, PIMCO are favouring shorter to immediate bond maturities, typically between three to five years, while keeping a more cautious position on longer-dated maturities. The thinking here is that Governments may need to fund financial shortfalls through the increased sale of Government debt (sovereign bonds) hindering total returns from longer dated maturities.
Portfolio duration, a measure of how sensitive the portfolio is to a given change in global wholesale interest rates, at around 5.9 years is significantly less than the 6.5-year duration of the fund’s benchmark. An acknowledgment that longer-date bond premiums may increase as investors reconsider the term premium.
We estimate the fund’s gross yield-to-maturity, calculated as the weighted-average gross yield of all securities in the portfolio, to be around 4.50% and the fund has a weighted-average portfolio credit quality of A+. The weighted-average portfolio credit quality is calculated by PIMCO and is the weighted-average credit rating of each security within the portfolio (when a security is not externally rated PIMCO will assign a credit rating).
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.
