Summer Listed Property
Summer Listed Property fund performance summary as at 31 January 2025.
Fund at a glance
Unit price (as at 31 January 2025): $1.2813
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% | 3.11% | 1.72% | -2.02% | -0.93% | -4.78% |
| 17.50% | 3.32% | 1.72% | -1.94% | -0.74% | -4.59% |
| 10.50% | 3.46% | 1.71% | -1.88% | -0.61% | -4.47% |
^ 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 88.17% of the fund.
Manager's Commentary
How did your portfolio perform?
Summer Listed Property (the fund) delivered a return net of fees and before tax of 1.71% for the month of January. For the 12 months to the end of January the fund delivered a return net of fees and before tax of –0.41%.
Positive performance came from your fund’s out of index holdings in Oceania Healthcare and Charter Hall Group, and underweight holding in Property for Industry. Underweight positions in Goodman Property Trust and an out of index position in Ryman Healthcare detracted from relative performance.
We actively manage the fund’s foreign currency exposures. As at 31 January 2025, these exposures represented about 5% of the value of the fund. After allowing for foreign currency hedges in place, around 3% of the value of the fund was unhedged and exposed to foreign currency risk.
What happened to the markets you invest in?
The NZ 10yr Govt. bond yield peaked in January at ~4.9% before retreating to fourth-quarter 2024 levels, ending the month at ~4.6%. The NZ-listed property sector had a solid start to 2025 posting positive performance against the broader market which declined.
The strong performance can, in part, be explained by a reversal of some aggressive selling of property names on the last trading day of last year. Large cap names Precinct Properties, Goodman Property Trust, and Vital Healthcare performed positively. On the other side of the ledger, small cap names Asset Plus, residential developer CDL Investments and NZ Rural Land Co. all declined.
What are we thinking about the future?
We have become more constructive on the property sector in recent months. The sector has been trading at a discount to its net tangible assets (NTA) since late 2021 and is currently trading at a 16% discount to (weighted average) book values. Mean reversion suggests either book values of assets have to fall further and/or share prices have to rise. We think the reversion will be weighted towards share price performance as falling interest rates should support asset valuations and sentiment towards the sector.
Many in the sector have significant levels of under-renting to capture even if market rent growth stalls or even goes modestly backwards. Commercial real estate forecasters expect vacancy to generally rise in 2025, though the level of vacancy differs by location and asset class. Portfolios with high quality tenants and long lease terms (generally where the listed sector sits) remain attractive. We have a strong preference against industrial property, where the tough economic background in NZ is weighing on tenant demand. Incentives are also on the rise, putting pressure on net-effective rents.
Interest rate headwinds will turn into a tailwind and pressure from tax rate changes will abate. 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 some time. Falling interest rates bring improving affordability, and a smaller chance of a double dip in residential house prices. Your fund has been adding to names in the sector and selected Australian names (likely to receive a boost from the beginning of the interest rate cutting cycle) in recent months.
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.
