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 31 January 2026): $1.2326
Date the fund started: 18 October 2016
Fund returns
| PIR | Total since inception^ | 1 Month | 3 Month | 1 Year | 3 Years^ |
|---|---|---|---|---|---|
| 28% | 1.62% | 0.12% | 0.41% | 2.40% | 3.41% |
^ 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 | Bank of China Call Account | 4.89% |
| 2 | Argosy Property Limited Green Bonds 27/03/2026 4.00% | 4.81% |
| 3 | ANZ transactional bank account | 4.53% |
| 4 | Kiwibank FRN 13/06/2028 | 4.43% |
| 5 | Powerco CP 15/04/2026 | 4.05% |
| 6 | Tax Management NZ Tributum Trust CP 24/04/2026 | 4.04% |
| 7 | New Zealand Government 15/05/2028 0.25% | 3.79% |
| 8 | Meridian Energy Limited CP 13/04/2026 | 3.24% |
| 9 | Investore Property Limited 2.40 %31/08/2027 | 2.57% |
| 10 | Rabobank FRN 05/04/2027 | 2.46% |
| Top 10 investments total | 38.81% | |
Manager's Commentary
How did your portfolio perform?
Summer New Zealand Cash (the fund) delivered a return after fees and before tax of 0.17% for the month of January. For the 12 months to the end of January, the fund delivered a return after fees and before tax of 3.34%.
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 higher over the month, leading to small capital losses on the fund's bond positions. However, performance was maintained through the fund's strong yield.
What happened in the markets you invest in?
Short-term interest rates in New Zealand rose over January, the third consecutive month of rising rates, with the two-year swap rate 0.22% higher over the month. There was no Reserve Bank of New Zealand (RBNZ) meeting in January. Economic data released during the month generally indicated a stronger New Zealand economy, with the Quarterly Survey of Business Opinion, as well as the Performance of Services and Manufacturing Indices all suggesting expansion. New Zealand CPI data, for the last quarter of 2025, came in at the top-end of economist and market expectations, up 3.1% year-on-year. This data appeared to support the move higher in short-term rates as, all else equal, they suggested that the RBNZ may need to raise the Official Cash Rate (OCR) sooner than they had previously signalled, in order to combat stronger inflation.
What are we thinking about the future?
At the end of January, the fund's gross yield to maturity was 2.97%, which represented a premium over the current OCR of 2.25%, and the fund's modified duration was around 0.26 years. Our view is that there are unlikely to be further cuts to the OCR this cycle, and that the next move in the OCR is likely a hike. 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%.