Summer New Zealand Cash

Summer New Zealand Cash fund performance summary as at 31 January 2024.

Fund at a glance

Unit price (as at 31 January 2024): $1.1299

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% 1.20% 0.33% 1.08% 3.86% 1.81%
17.50% 1.38% 0.38% 1.24% 4.44% 2.08%
10.50% 1.50% 0.41% 1.34% 4.82% 2.26%

  ^ 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 

  Asset name % of fund net assets
1 ANZ transactional bank account 15.48%
2 Vector Ltd 14/03/2024 4.996% 5.13%
3 Kiwibank Limited 20/09/2024 2.155% 4.24%
4 Genesis Energy Limited 5.0% 03/04/2025 4.06%
5 Hamilton City Council 0% 05/02/2024 4.03%
6 Auckland City Council  0% 18/04/2024 3.98%
7 Christchurch International Airport Limited 24/05/2024 4.13% 3.94%
8 Mercury NZ Ltd 0% 29/02/2024 3.75%
9 Fonterra Co-op Group RCD 07/03/2024 3.74%
10 New Zealand Post Ltd RCD 28/03/2024 3.73%

The top 10 investments make up 52.07% of the fund.

Manager's Commentary

What happened in the markets you invest in?

January saw interest rates rise, and bond markets post small losses. In the US, the 10-year Government bond yield (a widely used benchmark for global interest rates) rose 10bps. Closer to home, New Zealand wholesale interest rates also rose, with the 2-year swap rate rising 12bps and the 10-year swap rate rising 24bps.

There were several important data releases over January influencing these moves; the US December inflation prints were slightly higher than expected and it was a similar story for US third-quarter gross domestic product (GDP) metrics, both showing that the US economy is still strong and dampening hopes for imminent rate cuts by the US Federal Reserve. In New Zealand, fourth-quarter inflation data was consistent with market expectations and 0.3% (quarter on quarter) weaker than the Reserve Bank of New Zealand (RBNZ) forecast. Domestic inflation in New Zealand however is still above RBNZ’s 1% to 3% target.

We can look to the Overnight Index Swap (OIS) to see what the New Zealand market is expecting for the future path of the Official Cash Rate (OCR). In January the market moved from expecting a full (0.25%) cut in the OCR at the May 2024 RBNZ meeting, to now expecting the first full cut by July 2024. 

How did your portfolio perform?

Summer New Zealand Cash delivered a return net of fees and before tax of 0.45% in January. For the 12 months to 31 January the fund delivered a return net of fees and before tax of 5.40%. 

What are you thinking about the future?

As at the end of January, the fund had a portfolio duration of 0.3 years1, and a portfolio yield to maturity of approximately 5.9%2. As discussed previously, while we believe that the OCR has peaked, we think that the market has gotten ahead of itself by pricing OCR cuts in the first half of this year. Consequently, we will look to add slightly to duration on increases in short-term interest rates. In January we sold some of our Floating Rate Notes and moved into high quality 2-year bonds. 

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.