For a printable version of this performance information, please click here.
Summer New Zealand Cash fund performance summary as at 31 March 2018.
Unit price (as at 31 March 2018): $1.0213
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||23.03%|
|ASB Bank Limited 22/06/2018||17.03%|
|New Zealand Local Government Funding Agency Ltd 15/03/2019 5.00%||16.55%|
|Westpac Cash Deposit||14.06%|
|Z Energy Ltd 15/8/2018 7.25%||10.78%|
|Contact Energy Limited 15/05/2019 5.8%||7.11%|
|Westpac New Zealand Ltd Fixed Rate Notes 20/09/2018 5.545%||6.96%|
|Genesis Energy Limited 15/07/2041 6.19%||4.49%|
|Total value of top 10 assets||100.00%|
Summer New Zealand Cash delivered returns of 0.09% for the month, 0.24% for the three months to the end of March and 1.14% for the year.
With no change in the Official Cash Rate (OCR) over the March quarter it’s not surprising that shorter-term interest rates were broadly stable over the period.
In fact, the last move in the OCR was a 0.25% cut way back in November 2016 and we’re not expecting the next move until some time next year: we expect a hike but acknowledge that the future is always uncertain.
New Zealand inflation expectations look to be well anchored in our assessment and with a slight tweaking of the Policy Targets Agreement (contract between the Governor of the Reserve Bank of New Zealand and the Minister of Finance) to consider employment aspirations when implementing monetary policy, we see a mild softening in the regulator’s attitude to managing inflation.
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 deposits held with domestic banks.
With our expectation of the Reserve Bank of New Zealand to maintain its accommodative monetary policy stance we will continue to put our cash to work in securities that offer a margin above the wholesale on-call deposit rate.
However, with investor angst rising globally we will continue to hold a significant portion of the portfolio in on-call cash deposits.
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.