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.
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 risk indicator is based on the returns data for the five years to 30 June 2026.
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% |
Minimum suggested investment timeframe
Fund at a glance
Unit price (as at 31 July 2026): $1.2480
Date the fund started: 19 September 2016
Fund returns
| PIR | 1 Month | 3 Month | 1 Year | 3 Years^ | Total since inception^ |
|---|---|---|---|---|---|
| 28% | 0.05% | 0.39% | 1.84% | 3.07% | 1.62% |
^ 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 | BNZ Transactional Account NZD | 9.32% |
| 2 | Ryman Healthcare Ltd 2.55% 18/12/2026 | 4.77% |
| 3 | Kiwibank FRN 13/06/2028 | 4.13% |
| 4 | Tax Management NZ Tributum Trust CP 28/10/2026 | 3.28% |
| 5 | Bank of China Call Account | 2.98% |
| 6 | Argosy Property Limited Green Bonds 29/10/2026 2.90% | 2.82% |
| 7 | BNZ FRN 11/05/2029 | 2.67% |
| 8 | Rabobank FRN 05/04/2027 | 2.66% |
| 9 | NZ Government Treasury Bill 26/08/2026 | 2.64% |
| 10 | Watercare Services Ltd CP 16/09/2026 | 2.64% |
| Top 10 investments total | 37.91% | |
Portfolio Holdings
Summer New Zealand Cash Portfolio Holdings
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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 July, in-line with its benchmark*. For the 12 months to the end of July the fund delivered a return after fees and before tax of 2.74%, also in-line with its benchmark* return.
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.
What happened in the markets you invest in?
Short-term interest rates in New Zealand rose, with the two-year swap rate rising 0.49%. The move higher was driven by a mix of global and domestic concerns. The resumption of hostilities between Iran and the United States sent oil prices higher again, which led to a rise in global interest rates as inflation concerns returned.
At its early-July Monetary Policy Review, the Reserve Bank of New Zealand (RBNZ) lifted the Official Cash Rate (OCR) by 0.25% to 2.50%. This was largely expected by economists and the market. Business and consumer sentiment surveys both indicated an economy recovering strongly in July. That said, of particular concern to the market were the rising cost pressures and pricing intentions identified in the Quarterly Survey of Business Opinion (QSBO). Performance of Manufacturing and Services indices were both in expansion territory for July.
What are we thinking about the future?
At the end of July, the fund's gross yield to maturity was 3.26%, which represented a premium over the OCR (2.50%). The fund's modified duration was around 0.19 years. Current market volatility supports maintaining a relatively short duration position. The fund's strategy remains the same: To invest in cash and short-dated, New Zealand debt securities issued by high-quality corporates, as well as local and central government, in order to build a yield well above the OCR.
*The benchmark for the fund is the S&P/NZX Bank Bills 90-Day Index