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 31 March 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 31 March 2026): $1.2368
Date the fund started: 19 September 2016
Fund returns
| PIR | 1 Month | 3 Month | 1 Year | 3 Years^ | Total since inception^ |
|---|---|---|---|---|---|
| 28% | 0.09% | 0.37% | 2.19% | 3.31% | 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 | New Zealand Government 15/05/2028 0.25% | 5.06% |
| 2 | Bank of China Call Account | 4.27% |
| 3 | Kiwibank FRN 13/06/2028 | 4.20% |
| 4 | Powerco CP 15/04/2026 | 3.86% |
| 5 | Tax Management NZ Tributum Trust CP 28/04/2026 | 3.86% |
| 6 | BNZ Transactional Account | 3.56% |
| 7 | ANZ Transactional Account | 3.51% |
| 8 | Rabobank FRN 05/04/2027 | 3.10% |
| 9 | Meridian Energy Limited CP 13/04/2026 | 3.09% |
| 10 | Investore Property Limited 2.40% 31/08/2027 | 2.44% |
| Top 10 investments total | 36.95% | |
Portfolio Holdings
SummerNZC portfolio holdings data Sept2025
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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 0.12% for the month of March. For the 12 months to the end of March, the fund delivered a return after fees and before tax of 3.06%.
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 significantly higher over the month, leading to capital losses for the fund's bond positions.
What happened in the markets you invest in?
Short-term interest rates in New Zealand moved substantially higher over the month, with the two-year swap rate 0.53% higher. The move higher was generally driven by offshore moves - inflation expectations around the world have risen with the large increase in energy prices due to the escalating Middle East conflict.
Economic data prior to the escalation in the Middle East conflict was generally consistent with a fragile recovery in New Zealand - the Performance of Manufacturing Index indicated economic expansion while the Services index showed contraction. Business and Consumer confidence unsurprisingly plummeted through March and the proportion of firms expecting cost increases was at its highest level since 2023.
What are we thinking about the future?
At the end of March the fund's gross yield to maturity was 2.98%, which represented a premium over the current OCR of 2.25%, and the fund's modified duration was around 0.22 years. Current market volatility supports maintaining a relatively short duration position, at the same time the recent move higher in yields means New Zealand Government bonds - specifically the May 2028 maturity - are now trading at a substantial premium to the OCR (the bond's yield was 3.6% at the end of March). 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.