Summer New Zealand Cash
Summer New Zealand Cash fund performance summary as at 28 February 2025.
Fund at a glance
Unit price (as at 28 February 2025): $1.1963
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% | 1.54% | 0.22% | 0.79% | 3.91% | 3.20% |
| 17.50% | 1.77% | 0.25% | 0.91% | 4.49% | 3.67% |
| 10.50% | 1.92% | 0.27% | 0.98% | 4.88% | 3.99% |
^ 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 43.82% 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 0.30% for the month of February and for the 12 months to the end of February Summer New Zealand Cash delivered a return after fees and before tax of 5.47%.
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 limited contribution from capital gain over the month.
What happened in the markets you invest in?
The Reserve Bank of New Zealand (RBNZ) delivered on market expectations at its February Monetary Policy Statement by 1) lowering the Official Cash Rate (OCR) by 0.50% and 2) lowered the 'OCR track' (the model output of the possible trajectory of the OCR) to more closely align with market pricing.
Interest rates were broadly flat in New Zealand over the month and economic data releases didn't deliver many surprises. The Performance of Services Index, Performance of Manufacturing Index and retail sales all pointed towards a recent rebound in economic activity in New Zealand. Labour market data for the fourth quarter showed the unemployment rate rising to 5.1%, an outcome that was consistent with economist expectations.
What are you thinking about the future?
At the end of February, the fund's estimated yield to maturity was 4.25%, which represents a premium over the current OCR of 3.75% and the fund's portfolio modified duration was 0.43 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 as on opportunities that may 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.
