Summer New Zealand Equities
Summer New Zealand Equities fund performance summary as at 28 February 2025.
Fund at a glance
Unit price (as at 28 February 2025): $1.7428
Date the fund started: 19 September 2016
For information on fees, see our Fees page.
For more information on the Summer New Zealand Equities fund, read the latest quarterly fund update and the product disclosure statement.
Fund objective and strategy
See the New Zealand Equities 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% | 6.82% | -3.07% | -3.72% | 4.79% | 1.17% |
| 17.50% | 7.17% | -3.06% | -3.68% | 5.15% | 1.53% |
| 10.50% | 7.40% | -3.04% | -3.65% | 5.39% | 1.77% |
^ 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 59.91% of the fund.
Manager's Commentary
How did your portfolio return?
Summer New Zealand Equities (the fund) delivered a return net of fees and before tax of -3.02% over February. For the 12 months to the end of February the fund delivered a return net of fees and before tax of 5.75%.
The fund’s top performers were our overweight holding in Tower Insurance, which reported strong profit growth due to fewer severe storms. Our underweight position in F&P Healthcare added relative performance with the share price falling on concerns about tariffs affecting Mexican operations, despite no specific company update.
The fund’s relative underperformers were our overweight holding in Spark, who reported very disappointing results and missed guidance. We believe however, the market overreacted and have added to our position. Our underweight position in A2 Milk detracted, as the company delivered strong financial results although the 37% price surge post result seems excessive given slow international expansion and China's declining population.
What happened in the markets that you invest in?
February is a key reporting month, with over half of the NZX50 companies reporting their December 2024 results. While weak economic growth meant poor profitability was expected, markets had hoped for companies to talk more about the green shoots of a recovery. Since the RBNZ began cutting interest rates in August 2024, the market has gained 4% in anticipation of a recovery; we shared this optimism.
However, despite aggressive rate cuts, businesses and consumers remain hesitant to spend due to government cutbacks, rising costs (insurance, energy, rates), and global uncertainty. Consequently, the NZ equity market declined steeply in February, giving up the gains of the last six months.
We still believe NZ is at the bottom of its economic cycle. More rate cuts, rising optimism, improving housing demand, and a weak NZ dollar supporting exports are all positive signs. But unemployment may not have peaked, and global instability (trade tensions, geopolitical risks) remains a challenge.
What are we thinking about the future?
As a small trading nation, NZ faces growing uncertainty from trade wars and shifting global rules. Some adjustments are government-driven (bilateral trade deals over WTO reliance), while others are market-driven (currency fluctuations countering tariffs).
Companies like Skellerup, in which your fund holds an overweight position, have adapted by adjusting supply chains and pricing strategies to offset tariffs. However, global instability could slow investment as firms focus on restructuring rather than growth. Over time, new trade frameworks will emerge, allowing businesses to adjust and expand.
Our core belief remains that NZ will return to economic growth, restoring company profit margins. In a weak economy, businesses struggle to cut costs fast enough to protect profits. When revenue growth resumes, we should expect a strong recovery in margins over time.
We focus on long-term sustainable value, capitalising on market overreactions—both excessive optimism and undue pessimism. The current environment continues to present attractive investment opportunities.
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.
