Summer Global Fixed Interest
Summer Global Fixed Interest fund performance summary as at 31 October 2024.
Fund at a glance
Unit price (as at 31 October 2024): $1.1166
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% | 1.10% | -1.25% | -0.13% | 6.56% | -0.60% |
| 17.50% | 1.44% | -1.43% | -0.15% | 7.40% | -0.33% |
| 10.50% | 1.67% | -1.55% | -0.17% | 7.96% | -0.15% |
^ 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 | 96.81% |
| 2 | ANZ transactional bank account | 3.19% |
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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?
October was a negative month, in general, for international fixed interest investors.
An unsurprising result given that the last few months had delivered positive returns for investors in Summer Global Fixed Interest.
Fatigued market participants, lacking conviction as to the speed and magnitude of US official interest rate cuts, took a cautious approach over the month. Wholesale selling of fixed interest securities, which in turn pushed term interest rates and bond yields higher, resulted in capital losses for investors in Summer Global Fixed Interest.
How did your portfolio perform?
Summer Global Fixed Interest delivered a return net of fees and before tax of loss of –1.73% for the month of October and for the 12 months to the end of October Summer Global Fixed Interest delivered a return net of fees and before tax of 8.81%.
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, to play a long-game anticipating a “soft recession”, which in general and over the longer term should be a good outcome for high-quality bond portfolios.
However, 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.
Tactically, PIMCO have taken the opportunity to accumulate non-Government bonds, increasing portfolio duration as bond yields moved higher over the course of the month. Consistent with a thesis of a soft- landing, where the Federal Reserve manage inflation back to the 2% target without triggering an economic recession, PIMCO’s strategy is maintain the portfolio’s yield-to-maturity at an attractive margin to the prevailing cash rate.
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 5.20% 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.
