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Summer New Zealand Cash fund performance summary as at 31 December 2017.
Unit price (as at 31 December): $1.0179
Date the fund started: 19 September 2016
For information on fees, see our Fees page.
Further information can be found in the product disclosure statement.
See the New Zealand Cash page for the Summary of investment objective and strategy.
|Annualised total since inception||1 Month||3 Months||1 Year|
Fund returns are calculated net of fund charges, trading expenses and accrued tax for a New Zealand resident individual paying tax at the highest Prescribed Investor Rate (28%).
|Asset name||% of fund net assets|
|ANZ Cash Deposit||28.93%|
|Westpac Cash Deposit||18.55%|
|ASB Bank Limited 28/02/2018||18.18%|
|New Zealand Local Government Funding Agency Ltd 15/03/2019 5.00%||17.97%|
|Z Energy Ltd 15/8/2018 7.25%||11.60%|
|Genesis Energy Limited 15/07/2041 6.19%||4.78%|
|Total value of top 10 assets||100.00%|
Summer New Zealand Cash delivered returns of 0.08% for the month, 0.25% for the three months to December and 1.10% for the year.
With no change in the Official Cash Rate (OCR) it’s not surprising that term deposit rates were broadly stable over 2017, with changes largely reflecting the oscillations of wholesale interest rates. In fact, the last move in the OCR was a 0.25% cut way back in November 2016.
The appointment of a new Reserve Bank governor (Adrian Orr- who will start in his new position in March) and a likely relaxation in the priority of inflation management, while not a game changer, will herald a marginal change in the regulator’s attitude and activities.
The fund continues with its strategy of holding what we believe to be high quality debt securities, in order to boost fund returns, as a complement to its cash deposits held with domestic banks.
Our immediate expectation of the Reserve Bank of New Zealand is that it will maintain its accommodative monetary policy stance. The new governor will need time to settle in and interpret any amended documents between himself and the Minister of Finance.
It’s not until the end of 2018 that we see the potential for an increase in the Official Cash Rate.
On this basis we forecast deposit rates as likely to remain at current rates until the run-up into the end of the calendar year.
For more information on the Summer New Zealand Cash fund, read the latest quarterly fund update.
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.