Summer New Zealand Cash
Summer New Zealand Cash fund performance update as at 30 June 2017.
Fund at a glance
Unit price (as at 30 June 2017): $1.0087
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.
Fund objective and strategy
See the New Zealand Cash page for the Summary of investment objective and strategy.
Fund returns
| Total since inception | 1 Month | 3 Months | 6 Months | |
|---|---|---|---|---|
| Fund | 0.62% | 0.11% | 0.24% | 0.44% |
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%).
Top 10 Investments
| Asset name | % of fund net assets | |
| 1 | New Zealand Government Treasury Bill 27/09/2017 | 21.74% |
| 2 | Westpac Cash Deposit | 19.83% |
| 3 | Bank of New Zealand Registered Certificate Deposit 28/07/17 | 17.45% |
| 4 | ANZ Cash Deposit | 16.11% |
| 5 | Rabobank Nederland Perpetual 08/10/2037 2.8825% | 12.84% |
| 6 | New Zealand Local Government Funding Agency Ltd 15/12/2017 6.00% | 12.03% |
| 7 | ||
| 8 | ||
| 9 | ||
| 10 | ||
| Total value of top 10 assets | 100.00% |
Manager's comments
Summer New Zealand Cash delivered a return of 0.11% for the month.
Our interpretation of the regulator’s Financial Stability Report, May 2017, suggests prudential initiatives – minimum debt to income thresholds for home loan borrowers and increased bank capital requirements. While designed to preserve financial stability, these initiatives will also have a positive impact on inflation outcomes. This is due to the fact that rationing the pool of credit available to the residential property market is one way of suppressing demand for housing stock and dissipating associated inflation.
This reinforces our expectation of the Reserve Bank of New Zealand to maintain accommodative monetary policy and we see limited prospect of an increase in the Official Cash Rate over the course of this year.
On this basis we forecast deposit rates to remain at current rates for the remainder of the year.
The fund continues with its strategy of adding 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.
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.
