Summer New Zealand Cash
Summer New Zealand Cash fund performance summary as at 31 March 2025.
Fund at a glance
Unit price (as at 31 March 2025): $1.2001
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% | 1.55% | 0.23% | 0.70% | 3.80% | 3.27% |
| 17.50% | 1.78% | 0.26% | 0.80% | 4.36% | 3.76% |
| 10.50% | 1.94% | 0.28% | 0.87% | 4.74% | 4.08% |
^ 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 46.88% of the fund.
Manager's Commentary
How did your portfolio perform?
Summer New Zealand Cash (the fund) delivered a return after fees and before tax of 0.32% for the month of March and for the 12 months to the end of March Summer New Zealand Cash delivered a return after fees and before tax of 5.31%.
The fund invests mostly into the Enhanced Cash Fund managed by Octagon Asset Management, the fund characteristics, and the remainder of this monthly commentary, relate to the Enhanced Cash Fund.
The main positive contributor to performance for the month was the fund's yield to maturity (thanks to the fund's combination of commercial paper and short-dated bonds (both fixed and floating rate)), with some capital gains provided by the fund's longer-than-benchmark duration position.
What happened in the markets you invest in?
In New Zealand short-term interest rates were slightly lower over the month, with the New Zealand two year swap rate down -0.07%. There wasn't much New Zealand-centric news driving interest rates over the month, with no Reserve Bank of New Zealand (RBNZ) meeting (albeit the RBNZ Governor did resign unexpectedly - but this had little observed impact on the market).
Economic data was generally mixed, with Gross Domestic Product (GDP) data for Q4 2024 coming in stronger than expected. More current data such as consumer confidence and the Performance of Services Index indicated a weak economy, while the Performance of Manufacturing Index was in expansion.
What are you thinking about the future?
At the end of March the Fund's estimated yield to maturity was 4.14%, which represents a premium over the current OCR of 3.75% and the Fund's portfolio modified duration was 0.40 years. With the New Zealand monetary policy easing cycle mostly priced-in, we continue with our strategy of buying short-dated corporate bonds that provide yields significantly above the OCR, while also trading duration within pre-determined risk limits as opportunities arise.
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.
