Summer New Zealand Cash
Summer New Zealand Cash fund performance summary as at 30 November 2024.
Fund at a glance
Unit price (as at 30 November 2024): $1.1833
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% | 1.49% | 0.26% | 0.95% | 4.09% | 2.96% |
| 17.50% | 1.71% | 0.30% | 1.09% | 4.69% | 3.39% |
| 10.50% | 1.86% | 0.33% | 1.19% | 5.10% | 3.69% |
^ 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 50.47% of the fund.
Manager's Commentary
What happened in the markets you invest in?
The Reserve Bank of New Zealand (RBNZ) lowered the Official Cash Rate (OCR) by -0.5% in November, a move that was widely expected by market participants. In a similar fashion we saw the 90-day bank bills rate (a key short-term interest rate in New Zealand) fall -0.16% over the month, while the New Zealand dollar two year swap rate rose 0.03%.
The rise in the two year swap rate was driven by changing expectations for the future of the OCR, with market participants now expecting that the RBNZ may not cut by as much over the course of 2025, driven by information provided in the Monetary Policy Statement which showed a slightly higher forecast for the OCR over time, and a reduction in the RBNZ's estimate of the New Zealand economy's current and estimated future output gap.
How did your portfolio perform?
Summer New Zealand Cash (the fund) delivered a return net of fees and before tax of 0.36% for the month of November and for the 12 months to the end of November, the fund delivered a return net of fees and before tax of 5.72%.
The fund invests mostly into the Enhanced Cash Fund managed by Octagon Asset Management, the fund characteristics in the remainder of this commentary relate to the Enhanced Cash Fund.
Outperformance over November was delivered through the fund's yield to maturity. With relatively small moves in short-term interest rates over the month, the impact of capital gains and losses on the fund was muted.
What are you thinking about the future?
As at the end of November the fund's estimated yield to maturity was 4.79%, which represents a strong premium over the current OCR of 4.25% and the Fund's portfolio modified duration was 0.40 years. We gradually increased duration during the month as short-term rates rose, and we may look to reduce duration again if short-term rates decrease to a level that we think is unsustainable. We continue with our strategy of buying short-dated fixed rate corporate bonds that provide yields significantly above the OCR, complemented by floating rate notes.
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.
