Summer New Zealand Cash

Summer New Zealand Cash fund performance summary as at 30 April 2024.

Fund at a glance

Unit price (as at 30 April 2024): $1.1445

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% 1.29% 0.31% 0.93% 4.02% 2.13%
17.50% 1.48% 0.35% 1.06% 4.62% 2.45%
10.50% 1.60% 0.38% 1.15% 5.02% 2.66%

  ^ 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 

  Asset name % of fund net assets
1 ANZ transactional bank account 13.79%
2 New Zealand Local Government Funding Agency Ltd 15/04/2026 1.50% 5.92%
3 GMT Bond Issuer Ltd 4.54% 31/05/2024 4.52%
4 Westpac New Zealand 1.439% 24/02/2026 4.40%
5 Kiwibank Limited 20/09/2024 2.155% 3.73%
6 Fonterra Co-op Group RCD 06/06/2024 3.52%
7 Genesis Energy Limited 5.0% 03/04/2025 3.51%
8 Transpower New Zealand 19/06/2024 0% 3.51%
9 Christchurch International Airport Limited 24/05/2024 4.13% 3.51%
10 Auckland City Council  0% 18/07/2024 3.49%

The top 10 investments make up 49.89% of the fund.

Manager's Commentary

What happened in the markets you invest in?

Both domestic and global interest rates increased in April. The New Zealand dollar two-year swap rate rose 0.32% while the US two-year treasury yield rose 0.43%.

In New Zealand the Reserve Bank of New Zealand (RBNZ) had a 'no surprises' April meeting. There was no change to the current tone of holding the Official Cash Rate (OCR) at 5.5% until the bank has sufficient evidence that inflation is under control. New Zealand inflation data for the March quarter (Q1 CPI) came in at the expected level, however, looking beneath the surface there was evidence that domestic inflation (which the RBNZ has more control over) remained elevated.

In the United States inflation data was stronger than expected, the third consecutive time that inflation data has surprised to the upside. On the other hand, US Q1 Gross Domestic Product was softer than expected. These conflicting data points helped add to volatility in interest rate markets.

Cash and cash equivalent investments continue to benefit from the relatively high-level of short-term interest rates. 

How did your portfolio perform?

Summer New Zealand Cash delivered a return net of fees and before tax of 0.43% in April. For the 12 months to the end of April the fund delivered a return net of fees and before tax of 5.63%.

What are you thinking about the future?

As at the end of April, the fund had a portfolio duration of 0.5 years1, and a portfolio yield to maturity of approximately 6.0%2. We expect the RBNZ to hold the Official Cash Rate (OCR) steady at 5.50% for some time. The market (via the Overnight Index Swap market) expects that the first full OCR cut will occur by October this year. We took the opportunity to increase duration through April as rates moved higher. We are happy to hold our current duration at around these levels, however if rates rally further, we may look to trim duration.

1Calculated as the weighted average modified duration of securities in the fund

2Calculated as the weighted average gross yield to maturity of the securities in the fund

 

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.