Summer New Zealand Cash
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.
* 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.
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% |
Minimum suggested investment timeframe
Fund at a glance
Unit price (as at 30 June 2026): $1.2453
Date the fund started: 19 September 2016
Fund returns
| PIR | 1 Month | 3 Month | 1 Year | 3 Years^ | Total since inception^ |
|---|---|---|---|---|---|
| 28% | 0.20% | 0.48% | 2.03% | 3.18% | 1.63% |
^ 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 | 8.24% |
| 2 | Bank of China Call Account | 4.39% |
| 3 | Kiwibank FRN 13/06/2028 | 4.20% |
| 4 | Ryman Healthcare Limited 2.55% 18/12/2026 | 4.17% |
| 5 | Tax Management NZ Tributum Trust CP 28/07/2026 | 3.37% |
| 6 | BNZ FRN 11/05/2029 | 2.72% |
| 7 | Rabobank FRN 05/04/2027 | 2.71% |
| 8 | NZGV T-Bill 26/08/2026 | 2.69% |
| 9 | Watercare Services Ltd Commercial Paper 2.735% 16/09/2026 | 2.68% |
| 10 | SBS Bank CP 29/07/2026 | 2.36% |
| Top 10 investments total | 37.53% | |
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 0.28% for the month of June and for the 12 months to the end of June the Fund delivered a return after fees and before tax of 2.84%.
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 fell over June, with the two-year swap rate declining 0.21%. The move lower was largely driven by easing global oil price expectations following the ceasefire in the Middle East war and reopening of the Strait of Hormuz, which reduced concerns around inflation.
The Reserve Bank of New Zealand did not meet during June, with market attention instead focused on the economic outlook. New Zealand's March quarter GDP grew 0.8%, in line with expectations, while revisions to historical data showed the economy expanded 1.5% over the year to 31 March, stronger than the 1.0% expected. Despite the stronger starting point, expectations for June quarter growth remain subdued.
Business activity indicators continued to point to a softer near-term outlook, with both the Performance of Manufacturing Index and the Performance of Services Index remaining in contraction territory, reinforcing expectations of weak economic activity through the June quarter.
What are we thinking about the future?
At the end of June, the fund's gross yield to maturity was 3.04%, which represented a premium over the OCR of 2.25%, and the fund's modified duration was around 0.16 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.