Summer Listed Property
Summer Listed Property fund performance summary as at 30 November 2024.
Fund at a glance
Unit price (as at 30 November 2024): $1.2936
Date the fund started: 19 September 2016
For information on fees, see our Fees page.
For more information on the Summer Listed Property fund, read the latest quarterly fund update and the product disclosure statement.
Fund objective and strategy
See the Listed Property 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% | 3.30% | -1.11% | -3.08% | 7.09% | -4.25% |
| 17.50% | 3.51% | -1.06% | -2.99% | 7.28% | -4.07% |
| 10.50% | 3.65% | -1.02% | -2.94% | 7.41% | -3.94% |
^ 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
The top 10 investments make up 88.55% of the fund.
Manager's Commentary
What happened to the markets you invest in?
The NZ 10yr Government bond yield was flat versus October at ~4.5% at month end. With the Reserve Bank of New Zealand (RBNZ) well into its rate cutting cycle, the outlook is becoming more positive for aged care than it has been for a while. Falling interest rates improve household affordability, and a smaller chance of a double dip in residential house prices.
Market laggards were Winton, as some of the positivity from Sunfield's inclusion in the fast-track legislation unwound. Stride Property, which reported a soft 1H25 result, and NZ Rural Land Co also declined. Asset Plus outperformed following the settlement of its Graham Street property and the announcement of a special dividend with the market interpreting that a wind-up and return of cash to shareholders is now more likely.
How did your portfolio perform?
Summer Listed Property delivered a return net of fees and before tax of –0.96% for the month of November.
For the 12 months to the end of November, Summer Listed Property delivered a return net of fees and before tax of 7.60%.
Positive performance came from out of index positions in Summerset, Goodman Group, Charter Hall Group, and Fletcher Building. Underweight positions in Property for Industry and an out of index position in Ryman Healthcare detracted from performance.
We actively manage the fund’s foreign currency exposures. As at 30 November 2024, these exposures represented about 5% of the value of the fund. After allowing for foreign currency hedges in place, around 2% of the value of the fund was unhedged and exposed to foreign currency risk.
What are we thinking about the future?
Six companies reported first half results largely as expected in November. Most companies reported a rise in vacancies, softening new tenant demand and slowing market rent growth - reflecting the economic backdrop. Debt costs, asset values and cap rates appear to have stabilised, and we saw good cost control from most who reported. As expected, a higher tax bill affected profits due to changes in government policy around depreciation. Transaction activity stays low, and for those with fund manager aspirations seeking external capital, progress is slow.
Industrial property yields remain low on expectations of continued dividend growth; however it is doubtful the level of growth will be sufficient to justify the current valuation premiums. Anecdotal evidence suggests that industrial rents have stalled, given rapidly deteriorating demand; elevated new stock completions and finally increased sub-leasing and back fill activity. We continue to see more attractive opportunities outside of the Industrial property space.
The office market is still bifurcated, as high-quality office space continues to be sought after at the expense of secondary office but rent growth has slowed. Incentives across all markets are increasing.
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.
