Summer New Zealand Cash
Summer New Zealand Cash fund performance summary as at 31 May 2024.
Fund at a glance
Unit price (as at 31 May 2024): $1.1498
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% | 1.32% | 0.34% | 0.99% | 4.03% | 2.25% |
| 17.50% | 1.51% | 0.38% | 1.13% | 4.63% | 2.58% |
| 10.50% | 1.64% | 0.42% | 1.22% | 5.04% | 2.80% |
^ 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 54.21% of the fund.
Manager's Commentary
What happened in the markets you invest in?
Domestic and international interest rates finished the month generally lower than where they started. The New Zealand dollar two year swap rate fell -0.02% over the month, while the US two year treasury rate fell -0.15%.
In New Zealand economic developments were mixed but largely as expected - which may explain the meagre decrease in the two year rate. On one hand March 2024 quarter labour market data was weak with the unemployment rate rising to 4.3%, which suggests a weak economy and the potential for cuts in the Official Cash Rate (OCR). On the other hand the Reserve Bank of New Zealand's (RBNZ) May Monetary Policy Statement was steadfast in signalling no OCR cuts anytime soon - in fact the RBNZ pushed out its own estimate of the first cut in the OCR to August 2025.
Cash and cash equivalent investments continue to benefit from the relatively high level of short-term interest rates.
How did your portfolio perform?
Summer New Zealand Cash delivered a return net of fees and before tax of 0.46% in May. For the 12 months to the end of May the fund delivered a return net of fees and before tax of 5.64%.
What are you thinking about the future?
At the end of May, the fund had a portfolio duration of 0.5 years1, and a portfolio yield to maturity of approximately 5.9%2.
We expect the Reserve Bank of New Zealand to hold the OCR steady at 5.50% for some time. The market (via the Overnight Index Swap market) expects that the first full OCR cut will occur in November this year or February next year.
We are currently focussed on maintaining duration at the current level and are taking advantage of short-term opportunities in corporate securities as they arise, such as WIA040, an investment grade rated bond that matures in August 2024 and can be purchased at a yield of 6.25%, a substantial premium over the OCR.
1Calculated as the weighted average modified duration of securities in the fund
2Calculated as the weighted average gross yield to maturity of the securities in the fund
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.
