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 August 2026): $1.2509
Date the fund started: 19 September 2016
Fund returns
| PIR | 1 Month | 3 Month | 1 Year | 3 Years^ | Total since inception^ |
|---|---|---|---|---|---|
| 28% | 0.14% | 0.39% | 1.75% | 3.01% | 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 | 8.84% |
| 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 | 2.97% |
| 6 | Argosy Property Limited Green Bonds 29/10/2026 2.90% | 2.82% |
| 7 | Rabobank FRN 05/04/2027 | 2.66% |
| 8 | BNZ FRN 11/05/2029 | 2.65% |
| 9 | Watercare CP 16/09/2026 | 2.64% |
| 10 | NZGV T-Bill 18/11/2026 | 2.62% |
| Top 10 investments total | 37.38% | |
Portfolio Holdings
Summer New Zealand Cash Portfolio Holdings
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Manager's Commentary
How did your portfolio perform?
The Summer Cash Fund (the Fund) delivered a return after fees and before tax of 0.24% for the month of August, in-line with the Fund's benchmark return of 0.22%. For the 12 months to the end of August the Fund delivered a return after fees and before tax of 2.65% also in-line with the Fund’s benchmark return of 2.66%.
The Summer Cash 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 slightly higher over August, leading to small capital losses on the Fund's bond positions. This was more than offset by the Fund's strong yield to maturity.
What happened in the markets you invest in?
Short-term interest rates in New Zealand rose, with the two-year swap rate rising a modest 0.04%. The move higher was driven by a mix of global and domestic concerns.
New Zealand economic data during the period presented a mixed picture. The unemployment rate rose to 5.6%, its highest level in a decade, as stronger labour force participation more than offset better-than-expected employment growth. However, business surveys, including the PMI, PSI, consumer confidence and ANZ Business Outlook, remained consistent with an economy in recovery. Inflation pressures appeared more contained, with the RBNZ's survey of expectations showing declines in both one-year and two-year inflation expectations, while wage growth, as measured by the Labour Cost Index, remained subdued at 2.0% year-on-year and broadly consistent with the RBNZ's inflation target.
What are we thinking about the future?
At the end of August, the Fund's gross yield to maturity was 3.29%, which represented a premium over the OCR of 2.50%, and the Fund's modified duration was around 0.20 years. Current market volatility supports maintaining a relatively short duration position. The Fund's strategy remains the same, invest in short-dated, New Zealand debt securities issued by high-quality corporates, as well as local and central government, to build a yield well above the OCR.
*The benchmark for the fund is the S&P/NZX Bank Bills 90-Day Index