Summer Growth Selection
Summer Growth Selection fund performance summary as at 28 February 2025.
Fund at a glance
Unit price (as at 28 February 2025): $1.4342
Date the fund started: 8 April 2019
For information on fees, see our Fees page.
For more information on the Summer Growth 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 Growth Selection page.
Fund objective and strategy
See the Summer Growth 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% | 5.87% | -1.12% | 0.72% | 9.40% | 5.49% |
| 17.50% | 6.15% | -1.09% | 0.67% | 9.66% | 5.76% |
| 10.50% | 6.34% | -1.08% | 0.64% | 9.84% | 5.94% |
^ 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 | Intermede Global Equity Fund | 13.80% |
| 2 | Hunter Global Fixed interest Fund | 5.98% |
| 3 | Fisher & Paykel Healthcare Corporation Limited | 2.18% |
| 4 | Precinct Properties New Zealand Limited | 1.75% |
| 5 | Goodman Property Trust | 1.69% |
| 6 | Auckland International Airport Limited | 1.44% |
| 7 | Kiwi Property Group Limited | 1.33% |
| 8 | Infratil Limited | 1.32% |
| 9 | ANZ transactional bank account | 1.19% |
| 10 | Contact Energy Limited | 1.11% |
The top 10 investments make up 31.79% of the fund.
Manager's Commentary
How did your portfolio perform?
The Summer Growth Selection (the fund) delivered a return net of fees and before tax of –1.05% for the month of February. For the 12 months to the end of February the fund delivered a return net of fees and before tax of 10.10%.
Cash and fixed interest delivered in-line returns during considerable geopolitical uncertainty. Equity markets had a busy reporting season but were buffeted by macro events as they tried to digest the potential for trade wars and new military alignments.
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. As of 28 February 2025, these exposures represented around 54% of the value of the fund. After allowing for foreign currency hedges in place, approximately 23% of the value of the fund was unhedged and exposed to foreign currency risk. The NZ dollar fell -0.88% against the US dollar and fell -0.58% against the Australian dollar during the month.
What happened in the markets that you invest in?
The new U.S. government quickly introduced major policy changes, both domestically and internationally. However, its messaging has been unclear, frequently revised, and sometimes contradictory.
Tariffs typically raise costs and slow growth, as confirmed by a 2019 U.S. Federal Reserve study on the 2018 Republican tariffs. Despite strong U.S. earnings, market uncertainty and growth risks led to a decline in equities. In contrast, global and emerging markets performed better, as elections delivered clear cut results and diversification from U.S. assets.
Risks to growth would also lower inflation, and hence US fixed interest rates fell, boosting bondholder returns. The US dollar strengthened despite lower interest rates, as it is often seen as a safe haven in times of uncertainty.
In New Zealand and Australia, economic weakness from 2024 was evident in earnings reports. While we anticipated this slowdown, we did not expect the absence of clear recovery signs. The positive effects of lower inflation and interest rate cuts have yet to materialise in company revenues or profit margins. Amid government austerity in NZ and ongoing global uncertainties, investors adopted a cautious, evidence-based approach rather than relying on optimism.
What are we thinking about the future?
Uncertainty tends to drive investors toward lower-risk, lower-priced assets, currently favouring fixed interest and non-US equity markets. A severe US economic growth slowdown could pressure global equities, but we do not see this as the most likely scenario. Instead, we expect market volatility until there is greater clarity on trade tariffs, US military alliances, and a potential ceasefire in Ukraine.
The Octagon Investment Committee met on the 11th of March, making no changes to the current tactical asset allocation positions. Our existing underweight in the global equities class, based on our view of a high valuation on high profit margins was a particular focus. The volatility and recent fall in the US equity market has not yet been enough for us to start buying global equities, but we are actively monitoring the state of the US economy and the improving value on offer in that asset class as share prices fall.
We remain overweight in Australasian assets, though NZ equities and listed property have been slower to recover than expected.
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.
