Summer New Zealand Cash
Summer New Zealand Cash fund performance summary as at 31 March 2024.
Fund at a glance
Unit price (as at 31 March 2024): $1.1396
Date the fund started: 19 September 2016
For information on fees, see our Fees page.
For more information on the Summer New Zealand Cash fund read the latest quarterly fund update and the product disclosure statement.
Fund objective and strategy
See the New Zealand Cash 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% | 1.26% | 0.34% | 0.95% | 3.94% | 2.03% |
| 17.50% | 1.45% | 0.39% | 1.08% | 4.53% | 2.33% |
| 10.50% | 1.57% | 0.42% | 1.18% | 4.92% | 2.53% |
^ 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 58.32% of the fund.
Manager's Commentary
What happened in the markets you invest in?
March was a positive end to the quarter for bond and short-duration investors in New Zealand. After interest rates rose through January and February, March saw interest rates fall, with the New Zealand two-year and 10-year swap rates both down by 19 basis points (0.19%). Interest rates moves were much more muted in overseas markets in March, with the United States' two- and 10-year government bond rates falling 0.03% and 0.06% respectively.
Economic data releases were mixed. In New Zealand, Q4 GDP figures were released which indicated a slightly weaker economy than was expected, while inflation in selected price indexes (which make up almost half of the Consumer Price Index) was generally in-line with expectations.
How did your portfolio perform?
Summer New Zealand Cash delivered a return net of fees and before tax of 0.47% in March. For the 12 months to the end of March the fund delivered a return net of fees and before tax of 5.52%.
What are you thinking about the future?
As at the end of March, the fund had a portfolio duration of 0.4 years1, and a portfolio yield to maturity of approximately 6.0%2. We expect the Reserve Bank of New Zealand (RBNZ) to hold the Official Cash Rate (OCR) steady at 5.50% for some time. The market (as described by the Overnight Index Swap) expects that the first full OCR cut will occur by August this year. We will look to any sell-off in short-term rates to enable us to add further to duration.
1Duration is the weighted-average portfolio sensitivity to changes in value resulting from changes in the level of New Zealand wholesale interest rates
2Gross yield to maturity is calculated as the weighted-average gross yield of all securities in the portfolio as at 31 March 2024, assuming that all amounts owed by the issuer will be received by the Fund and is based on our assessment of the calculation methodology made available by the manager of the fund’s market index; and does not include the deduction of any taxes, fund charges, trading expenses or fees
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.
