Summer New Zealand Cash
Summer New Zealand Cash fund performance summary as at 31 July 2025.
Fund at a glance
Unit price (as at 31 July 2025): $1.2148
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% | 1.60% | 0.23% | 0.62% | 3.25% | 3.41% |
| 17.50% | 1.83% | 0.26% | 0.71% | 3.73% | 3.92% |
| 10.50% | 1.99% | 0.29% | 0.77% | 4.05% | 4.26% |
^ 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 40.10% 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 July and for the 12 months to the end of July Summer New Zealand Cash delivered a return after fees and before tax of 4.53%.
New Zealand interest rates were largely stable over the month, as a result most of the fund's outperformance came from its higher yield to maturity. Credit spreads on commercial paper continued to tighten in July, which was also supportive of the fund's return.
What happened in the markets you invest in?
New Zealand short-term interest rates moved lower over the month, with 1-year and 2-year swap rates down -0.05% and -0.03% respectively as market participants assessed the timing of the low-point in the Official Cash Rate (OCR).
Economic data was generally weak: Q2 Consumer Price Index (CPI) inflation data printed close to expectations of the market and the Reserve Bank of New Zealand (RBNZ), while the June Performance of Manufacturing and Performance of Services indices remained in contraction territory.
At the July RBNZ meeting there was no change to the OCR, the first 'pause' since the easing cycle began in August last year. This outcome was largely expected by market participants and left open the door for further cuts to the OCR if economic data evolved as the RBNZ expected.
What are you thinking about the future?
At the end of July, the fund's gross yield to maturity was 3.7%, which represented a premium over the current OCR of 3.25%, and the fund's modified duration was around 0.38 years. As market pricing for the OCR falls, pulling short-term interest rates down with it, we will look to reduce the fund's duration.
Our current thinking is that with inflation still within target and the New Zealand economic recovery struggling to materialise, the OCR may need to be reduced below current market pricing. Regardless of the future direction of interest rates, we believe there are still opportunities in quality corporate bonds to earn yields substantially above the current OCR of 3.25%.
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.
