Summer New Zealand Cash
Summer New Zealand Cash fund performance summary as at 31 January 2025.
Fund at a glance
Unit price (as at 31 January 2025): $1.1927
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% | 1.53% | 0.25% | 0.83% | 3.97% | 3.13% |
| 17.50% | 1.76% | 0.29% | 0.96% | 4.56% | 3.60% |
| 10.50% | 1.91% | 0.32% | 1.04% | 4.96% | 3.91% |
^ 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 45.68% of the fund.
Manager's Commentary
How did your portfolio perform?
Summer Cash (the fund) delivered a net (after fees but before tax) return of 0.35% for the month of January. For the 12 months to the end of January, the fund delivered a net return of 5.56%.
The fund invests mostly into the Enhanced Cash Fund managed by Octagon Asset Management, the fund characteristics and the remainder of this commentary relate to the Enhanced Cash Fund.
The main positive contributor to performance for the month was the fund's yield to maturity, while short-dated bonds held by the fund had a mixture of capital gains and losses for the month.
What happened in the markets you invest in?
There was no Reserve Bank of New Zealand (RBNZ) meeting in January and expectations (from both the market and economists) for a 0.5% cut to the Official Cash Rate (OCR) at the 19 February meeting remain high.
Rates generally headed higher in New Zealand over the month, with the 2-year and 10-year swap rates up 0.06% and 0.14% respectively. Inflation data printed largely as expected, with the Q4 Consumer Price Index (CPI) coming in at +2.2% year-on-year and crucial non-tradeable inflation of 0.7% quarter-on-quarter the weakest it has been for nearly four years. Other economic data was generally weak, with the Performance of Manufacturing Index, Performance of Services Index, and the Quarterly Survey of Business Opinion all suggesting sluggish growth from a moribund economy.
What are you thinking about the future?
At the end of January, the fund's estimated yield to maturity was 4.47%, which represents a premium over the current OCR of 4.25% and the fund's portfolio modified duration was 0.40 years. With the OCR highly likely to be cut soon, the fund’s yield premium will be even more attractive.
We recently extended duration as short-term rates sold-off from recent lows and we will continue to range-trade duration in-line with market movements. 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 (FRNs).
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.
