Summer New Zealand Cash
Summary of investment objective and strategy
To achieve returns (before fees, taxes and other expenses) greater than the Official Cash Rate (OCR) over a rolling 12 month period.
These investments typically have very low movement up and down in value.
Strategic investment mix
| Category | % |
|---|---|
| Cash and cash equivalents | 65.00% |
| New Zealand fixed interest | 35.00% |
| International fixed interest | 0.00% |
| Total income assets | 100% |
| Australasian equities | 0.00% |
| Listed property | 0.00% |
| International equities | 0.00% |
| Total growth assets | 0% |
| Total portfolio | 100% |
Risk indicator
The risk indicator is rated from 1 (low) to 7 (high). The rating reflects how much the value of the fund’s assets goes up and down (volatility). A higher risk generally means higher potential returns over time, but more ups and downs along the way.
* The composite benchmark for each multi-asset class fund is made up of the single asset class benchmarks weighted by the target asset allocation for the asset class.
Minimum suggested investment timeframe
Less than 12 months
Fund at a glance
Unit price (as at 28 February 2026): $1.2353
Date the fund started: 18 October 2016
Fund returns
| PIR | Total since inception^ | 1 Month | 3 Month | 1 Year | 3 Years^ |
|---|---|---|---|---|---|
| 28% | 1.63% | 0.16% | 0.43% | 2.34% | 3.39% |
^ 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
| # | Asset name | % of fund net assets |
|---|---|---|
| 1 | ANZ transactional bank account | 7.28% |
| 2 | Bank of China Call Account | 4.85% |
| 3 | Argosy Property Limited Green Bonds 27/03/2026 4.00% | 4.41% |
| 4 | Kiwibank FRN 13/06/2028 | 4.07% |
| 5 | Powerco CP 15/04/2026 | 3.71% |
| 6 | Tax Management NZ Tributum Trust CP 24/04/2026 | 3.70% |
| 7 | Rabobank FRN 05/04/2027 | 3.01% |
| 8 | Meridian Energy Limited CP 13/04/2026 | 2.97% |
| 9 | Investore Property Limited 2.40 %31/08/2027 | 2.36% |
| 10 | Transpower New Zealand FRN 31/07/2028 | 2.24% |
| Top 10 investments total | 38.6% | |
Manager's Commentary
How did your portfolio perform?
Summer New Zealand Cash (the fund) delivered a return after fees and before tax of 0.22% for the month of February. For the 12 months to the end of February, the fund delivered a return after fees and before tax of 3.26%.
The fund invests mainly into the Enhanced Cash Fund managed by Octagon Asset Management. The fund’s characteristics, and the remainder of this monthly commentary, relate to the Enhanced Cash Fund.
New Zealand interest rates moved lower over the month, providing capital gains for the fund's bond positions.
What happened in the markets you invest in?
Short-term interest rates in New Zealand moved lower over the month, with the two-year swap rate -0.22% lower. The Reserve Bank of New Zealand (RBNZ) released its February Monetary Policy Statement, where it held the Official Cash Rate (OCR) steady at 2.25%, and modestly increased its forward OCR track, which indicated a high probability of an OCR hike by December 2026.
Economic data was generally positive. Employment rose 0.5% q/q in Q4, its strongest gain in two and a half years (albeit the unemployment rate also rose to 5.4%). Retail sales exceeded expectations with volumes up 0.9% q/q in Q4, after a strong 1.9% increase in Q3. Both the Performance of Manufacturing (PMI) and Performance of Services (PSI) indices indicated economic expansion, albeit the PSI remained below its historical average.
What are we thinking about the future?
At the end of February, the fund's gross yield to maturity was 2.90%, which represented a premium over the current OCR of 2.25%, and the fund's modified duration was around 0.15 years.
Our view remains that the next move in the OCR is likely to be a hike, albeit we do not expect this until towards the end of the year. With a bias towards short-term rates increasing, over the medium-term the fund will maintain a relatively short duration position (relative to the positions it has held in the last few years).
Having said that, we will continue to take opportunities to conservatively trade duration within strict limits. Regardless of the future direction of interest rates, we believe there are still opportunities in quality short term corporate bonds to earn yields substantially above the current OCR of 2.25%.