Summer New Zealand Cash
Summer New Zealand Cash fund performance summary as at 31 August 2025.
Fund at a glance
Unit price (as at 31 August 2025): $1.2187
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% | 1.61% | 0.23% | 0.68% | 3.12% | 3.46% |
| 17.50% | 1.84% | 0.27% | 0.78% | 3.58% | 3.97% |
| 10.50% | 2.00% | 0.29% | 0.85% | 3.89% | 4.32% |
^ 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 39.58% of the fund.
Manager's Commentary
How did your portfolio perform?
Summer New Zealand Cash delivered a return after fees and before tax of 0.32% for the month of August and for the 12 months to the end of Augusts Summer New Zealand Cash delivered a return after fees and before tax of 4.36%.
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 -0.27% in response to the dovish tone of the Reserve Bank of New Zealand's (RBNZ) August Monetary Policy Statement (MPS). While the OCR was cut 0.25%, as widely expected by market participants, what did surprise the market was that the forward track for the OCR was revised sharply lower to a low-point of around 2.55% (versus 2.85% prior) and second, that two members of the Monetary Policy Committee voted to cut by 0.50%.
Economic activity data was slightly more positive than in prior months - the BNZ / BusinessNZ Manufacturing and Services indices both showed lifts from the prior month and are now well-above the low levels seen in the middle of this year.
What are you thinking about the future?
At the end of August, the fund's gross yield to maturity was 3.5%, which represented a premium over the current OCR of 3.0%, and the fund's modified duration was around 0.24 years. We reduced the fund's duration in August as short-term interest rates came down.
Market pricing for the OCR is now broadly aligned with the RBNZ's own guidance. We are currently 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.
