Summer New Zealand Cash
Summer New Zealand Cash fund performance summary as at 30 April 2025.
Fund at a glance
Unit price (as at 30 April 2025): $1.2044
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% | 1.57% | 0.26% | 0.71% | 3.74% | 3.33% |
| 17.50% | 1.80% | 0.30% | 0.81% | 4.30% | 3.83% |
| 10.50% | 1.96% | 0.32% | 0.88% | 4.67% | 4.16% |
^ 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 39.27% 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 0.36% for the month of April and for the 12 months to the end of April Summer New Zealand Cash delivered a return after fees and before tax of 5.23%.
The fund invests mostly 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.
The main positive contributor to performance for the month was capital gains on the fund’s short-dated bond positions as short-term interest rates moved sharply lower. Also supportive was the fund’s greater-than-benchmark yield to maturity.
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 -0.30% as market participants reassessed expectations for the cycle low-point in the Official Cash Rate (OCR).
Economic data pointed to a very slow recovery in the New Zealand economy, the BNZ – Business NZ Performance Composite index was only just in expansion. At its April meeting the Reserve Bank of New Zealand (RBNZ) lowered the OCR by 25bps to 3.50% and acknowledged that the global trade situation could present downside risks to inflation and growth which could lead to further lowering of the OCR. The market moved to price a low point in the OCR of 2.75% (from 3.00%).
What are you thinking about the future?
At the end of April, the fund's gross yield to maturity was 3.90%, which represented a premium over the current OCR of 3.5%. Most market participants expect the OCR to approach 2.75% by the end of year. The fund's portfolio modified duration (interest rate sensitivity to generalised movement in wholesale interest rates) was 0.33 years. We assess New Zealand monetary policy easing cycle as mostly priced-in; we continue with our strategy of buying short-dated corporate bonds that provide yields significantly above the OCR, while also trading duration within pre-determined risk limits as opportunities arise.
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.
