Summer New Zealand Cash
Summer New Zealand Cash fund performance summary as at 31 October 2025.
Fund at a glance
Unit price (as at 31 October 2025): $1.2256
Date the fund started: 19 September 2016
For information on fees, see our Fees page.
For more information on the Summer New Zealand Cash fund read the latest quarterly fund update and the product disclosure statement.
Fund objective and strategy
See the New Zealand Cash page for the Summary of investment objective and strategy.
Fund returns
| PIR | Total since inception (annualised) | 1 Month | 3 Month | 1 Year | 3 Years^ |
| 28% | 1.62% | 0.20% | 0.64% | 2.83% | 3.50% |
| 17.50% | 1.86% | 0.22% | 0.73% | 3.25% | 4.02% |
| 10.50% | 2.02% | 0.24% | 0.80% | 3.53% | 4.37% |
^ 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
The top 10 investments make up 38.96% of the fund.
Manager's Commentary
How did your portfolio perform?
Summer New Zealand Cash delivered a return after fees and before tax of 0.27% for the month of October and for the 12 months to the end of October Summer New Zealand Cash delivered a return after fees and before tax of 3.95%.
The fund invests mainly into the Enhanced Cash Fund managed by Octagon Asset Management. The fund characteristics, and the remainder of this monthly commentary, relate to the Enhanced Cash Fund.
What happened in the markets you invest in?
New Zealand short-term interest rates moved lower over the month, with the two-year swap rate down -0.07%. This fall was largely in reaction to the more-dovish-than-expected October policy update from the Reserve Bank of New Zealand (RBNZ) where the OCR was cut by 0.50%. In reaction, the market moved to price a low-point in the OCR of 2.08%, implying a decent chance of two further 0.25% cuts in the OCR.
Other economic data released during the month was generally weak with the both the Performance of Manufacturing and Performing of Services indices in contraction territory, albeit the third quarter of 2025 was overall stronger than the second quarter, cautiously suggested improvement.
What are you thinking about the future?
At the end of October, the fund's gross yield to maturity was 3.05%, which represented a premium over the current OCR of 2.5%, and the fund's modified duration was around 0.15 years.
Market pricing for the OCR is now lower than what the RBNZ signaled at the August Monetary Policy Statement (MPS). We remain in wait-and-see mode as we assess what the high frequency economic data implies about the direction of the New Zealand economy - is current OCR pricing sufficient or are more cuts required? While we wait, we will keep the fund's duration close to that of the market index. 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 3.0%.
This is not a recommendation to buy or sell any financial product and does not take your personal circumstances into account. All opinions reflect our judgement on the date of communication and may change without notice. Past performance is not a reliable guide to future performance. We recommend you take financial advice before making investment decisions. We have prepared this web page in good faith based on information obtained from other sources, but we do not guarantee the accuracy of that information. We do not make any representation or warranty (express or implied) that this web page is accurate, complete, or current and to the maximum extent permitted by law disclaim any liability for loss which may be incurred by any person relying on this web page.
