Summer New Zealand Cash fund performance summary as at 30 September 2019.
Unit price (as at 30 September 2019): $1.0415
Date the fund started: 19 September 2016
For information on fees, see our Fees page.
See the New Zealand Cash page for the Summary of investment objective and strategy.
|Annualised total since inception||1 Month||3 Months||1 Year||3 Years|
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|
|1||ANZ transactional bank account||23.23%|
|2||Bank of New Zealand RCD 18/11/2019||19.41%|
|3||Christchurch International Airport Ltd 06/12/2019 5.15%||17.55%|
|4||Westpac Cash Deposit||17.01%|
|5||Z Energy Ltd 15/11/2019 6.50%||12.31%|
|6||Wellington International Airport Limited 06/11/2020 5.27%||10.50%|
|Total value of top 10 assets||100.00%|
With a 0.50% cut to our Official Cash (OCR) Rate over the September quarter and by our assessment, another two cuts baked into market expectations, we see it only as a matter of time before term deposit rates move lower.
If we apply our logic to Australia, where we predict another 0.25% cut to their OCR, plus a 50/50 chance of another 0.25% - delivering a terminal rate of either 0.25% or 0.50% - we also see Australian term deposits lower, as well. Our point here is that New Zealand is not the exception to the lower interest rate rule!
The fund continues with its strategy of holding what we believe to be high quality investments, in order to boost fund returns, as a complement to its deposits held with domestic banks.
With our expectation that the Reserve Bank of New Zealand will relax monetary policy further and slowing international economic activity, generally, we will continue to put our cash to work in selected securities that offer a margin above the OCR.
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.