Summer New Zealand Cash
Summer New Zealand Cash fund performance summary as at 30 November 2025.
Fund at a glance
Unit price (as at 30 November 2025): $1.2279
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% | 0.14% | 0.54% | 2.70% | 3.49% |
| 17.50% | 1.86% | 0.16% | 0.62% | 3.10% | 4.01% |
| 10.50% | 2.02% | 0.17% | 0.68% | 3.37% | 4.36% |
^ 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 39.22% 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 0.19% for the month of November and for the 12 months to the end of November the fund delivered a return after fees and before tax of 3.77%.
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.
What happened in the markets you invest in?
New Zealand short-term interest rates moved higher over the month, with the two-year swap rate up 0.30%. This move was driven by the Reserve Bank of New Zealand's (RBNZ) November Monetary Policy Statement (MPS) which strongly signaled the end of the monetary easing cycle. Despite cutting the Official Cash Rate (OCR) by 0.25%, as widely expected by market participants, the published forward OCR track indicated only a small chance of a further cut and the bank's commentary suggested no directional bias for the OCR.
Economic data released during the month generally signaled a recovery. Crucially, the RBNZ's Kiwi-GDP model (a weekly-updated estimate of GDP) showed an uptick to 0.8% for the September quarter and 0.5% for the December quarter, both of which are much stronger than data had previously suggested.
What are you thinking about the future?
At the end of November, the fund's gross yield to maturity was 2.91%, which represented a premium over the current OCR of 2.25%, and the fund's modified duration was around 0.22 years. Prior to the MPS the fund's duration was around 0.15 years (in-line with the fund's market index) and we used the subsequent sell-off in interest rates to increase duration through buying short-dated New Zealand Government Bonds.
Market pricing for the future OCR (vis the Overnight Index Swap market) is now significantly higher than what the RBNZ signaled at the MPS, pricing in hikes for next year. We think this move higher was largely driven by market positioning, as it is too early to say with any confidence that the OCR needs to rise. We take opportunities like this to conservatively trade duration within strict limits. 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 2.25%.
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 a11ccuracy 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.
