Summer New Zealand Cash

Summer New Zealand Cash fund performance summary as at 30 June 2021.

Fund at a glance

Unit price (as at 30 June 2021): $1.0478

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% 0.71% -0.01% -0.02% -0.04% 0.54%
17.50% 0.81% -0.02% -0.02% -0.05% 0.62%
10.50% 0.88% -0.02% -0.03% -0.05% 0.67%

 ^ 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 23.85%
2 Westpac Cash Deposit 23.10%
3 Genesis Energy Limited Commercial Paper 20/08/2021    12.83%
4 Fonterra Co-operative Group Ltd Fixed Rate Bonds 20/10/2021 4.33% 10.74%
5 Contact Energy Ltd 15/11/2021 4.40% 10.47%
6 ASB Bank Limited 26/05/2021 4.245% 10.42%
7 New Zealand Local Government Funding Agency Ltd 14/04/2022 2.75% 8.59%
  Total value of top 10 assets 100.00%


Manager's Commentary

Market Commentary

The Reserve Bank of New Zealand (RBNZ) continued to hold its Official Cash Rate (OCR) at 0.25% over the June quarter.

Investors in Summer New Zealand Cash need to be aware that in an ultra-low interest rate environment, fund returns, after fees and tax, could be negative; investors will need to consider the appropriateness of investing in Summer New Zealand Cash.

Indeed, fund returns for the month of June were a loss of -0.01% and loss of -0.02% for the quarter.

Simply put, one of the current goals of the RBNZ is to dissuade investors from holding cash!

Portfolio Positioning

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 in domestic banks.


There is no change to our current thesis: we expect domestic interest rates to rise in response to a persistent and sustained bout of inflation.

We’re slightly flummoxed as to why other commentators have not assessed domestic inflation as likely to evolve beyond cost-push to demand-pull inflation.

We acknowledge the current disruptions to the supply channel pushing up prices, which act as a tax if the discretionary portion of the consumer’s income is not increased to compensate.

However, we see increased wages and salaries as a given, judging by recent employment growth and job advertisement numbers.

Add this to the positive wealth effect of the current level of residential property prices and favourable asset price returns over the last year; we forecast an emboldened consumer.  

Our assessment is for inflation to become the real deal: demand pull.

Finally, we believe the Reserve Bank of New Zealand will have no option but tighten both orthodox and unorthodox monetary policy settings.

In our view, this should lift term deposit rates – but not in a meaningful way until the end of the year.   



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.