Summer New Zealand Cash
Summer New Zealand Cash fund performance summary as at 30 June 2025.
Fund at a glance
Unit price (as at 30 June 2025): $1.2109
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% | 1.58% | 0.22% | 0.65% | 3.49% | 3.40% |
| 17.50% | 1.82% | 0.25% | 0.74% | 4.01% | 3.90% |
| 10.50% | 1.97% | 0.27% | 0.81% | 4.36% | 4.24% |
^ 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 43.07% of the fund.
Manager's Commentary
How did your portfolio perform?
Summer New Zealand Cash (the fund) delivered a return after fees and before tax of 0.31% for the month of June and for the 12 months to the end of June Summer New Zealand Cash delivered a return after fees and before tax of 4.89%.
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.
Falling interest rates provided capital returns to the fund’s short-dated bond exposures. Credit spreads on the fund's commercial paper holdings moved tighter over the month, which all else equal would have supported fund outperformance.
What happened in the markets you invest in?
New Zealand short-term interest rates moved lower over the month, with the 2-year swap rate down -0.09% as market participants reassessed expectations for the cycle low-point in the Official Cash Rate (OCR).
Economic data was mixed: on one-hand Gross Domestic Product (GDP) growth for Q12025 was much stronger than most market participants and the Reserve Bank of New Zealand (RBNZ) had originally anticipated. On the other-hand, more recent indicators of economic growth, like the BNZ - Business NZ Performance of Manufacturing and Performance of Services indices (for the month of May and released in June), showed New Zealand in contraction territory.
There was no RBNZ meeting in June, and market pricing (as indicated by the Overnight Index Swap market) for the OCR didn’t move much over the month, pricing a low in the OCR of around 2.95% at the start of the month and moving down to 2.87% by 30 June.
What are you thinking about the future?
At the end of June, the fund's gross yield to maturity was 3.8%, which represented a premium over the current OCR of 3.25%. With the small rally in short-term interest-rates we took the opportunity to decrease the fund's duration to 0.39 years (from 0.43 years at the end of May). We did this through reducing our exposure to 2027 maturity Local Government Funding Agency and New Zealand Government bonds.
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.
