Summer New Zealand Equities
Summer New Zealand Equities fund performance summary as at 30 November 2024.
Fund at a glance
Unit price (as at 30 November 2024): $1.8104
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% | 7.53% | 2.60% | 4.51% | 12.98% | 1.39% |
| 17.50% | 7.88% | 2.61% | 4.64% | 13.36% | 1.74% |
| 10.50% | 8.12% | 2.61% | 4.74% | 13.61% | 1.97% |
^ 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 60.39% of the fund.
Manager's Commentary
What happened in the markets that you invest in?
November is the last big news month before activity slows into Christmas. There is a mini reporting season and a swathe of Annual Shareholder Meetings to give us insight into how the various businesses are faring. Stocks exposed to the NZ construction and consumer markets are seeing weak demand – Mainfreight, Steel and Tube, Heartland Group and the Warehouse were in this camp, although Hallenstein Glasson and Briscoes Group are performing well relative to their peers.
Tower, Fisher and Paykel Healthcare, GTK and Sanford reported much more solid results across their diversified industries. A2 Milk announced a dividend policy for the first time, earlier than we expected, whilst the aged care sector continues to struggle with slow turnover and limited house price growth. Channel Infrastructure raised equity to build a new storage facility for a committed customer and we happily invested more of the fund with them.
How did your portfolio return
Summer New Zealand Equities delivered a return net of fees and before tax of 2.61% over November.
For the 12 months to the end of November, Summer New Zealand Equities delivered a return net of fees and before tax of 13.99%.
This month's underperformance was driven by Sky TV (SKT) and Gentrak (GTK). SKT announced that its exclusive negotiating period with the New Zealand Rugby Union for the next five years' worth of TV rights had expired. We continue to believe they are best placed to retain their rights, but uncertainty has increased. GTK reported an in-line result, confirmed long run earnings guidance, but did not provide near term guidance. We were surprised by the subsequent 40%+ increase in the share price.
These moves overwhelmed small positives from our positions in NZX, Sky City and Freightways.
What are we thinking about the future?
We continue to see NZ businesses dealing with the bottom of the local economic cycle and showing caution around near-term trading. Further rate cuts from the Central Bank, companies being aggressive around their cost base and an eventual return to spending by the government sometime next year are key positives for the market in our mind.
Market earnings growth forecast for next year is around 15% and given the low starting point from 2024 that seems reasonable to us. Infratil, Auckland Airport and now Channel have easily raised new money from investors over the last few months, a sign than investor sentiment towards the market is positive.
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.
