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Summer New Zealand Fixed Interest fund performance summary as at 31 October 2017.
Unit price (as at 31 October 2017): $1.0282
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 Fixed Interest page for the Summary of investment objective and strategy.
|Total since inception||1 Month||3 Months||6 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|
|1||New Zealand Local Government Funding Agency Ltd 15/04/2023 5.50%||5.33%|
|2||ANZ Cash Deposit||4.82%|
|3||Transpower New Zealand Ltd 30/06/2022 4.30%||4.70%|
|4||New Zealand Local Government Funding Agency Ltd 15/04/2020 3.00%||4.69%|
|5||New Zealand Local Government Funding Agency Ltd 15/12/2017 6.00%||3.87%|
|6||New Zealand Local Government Funding Agency Ltd 15/05/2021 6.00%||3.76%|
|7||Bank of New Zealand Subordinated Note 17/12/2025 5.314%||3.72%|
|8||ASB Bank Limited 4.476% 20/12/17||3.70%|
|9||ANZ Bank New Zealand Ltd 25/09/2020 4.03%||3.28%|
|10||Sky City Entertainment Group Ltd 28/09/2022 4.65%||2.88%|
The top 10 investments make up 40.75% of the fund.
Summer New Zealand Fixed Interest delivered a return of 0.45% for October.
Messaging from key global central banks over the month continues to indicate to us that the next evolution in global monetary policy will be a reduction in the financial support that has been in place for many years now.
We counter very quickly that we believe any reduction in official financial largesse will be glacial in speed and very well signaled – a strategy of no surprises and “a long time between drinks” – and not one that is necessarily synchronised across nations.
Locally, we see things slightly differently. We expect the Reserve Bank of New Zealand to maintain accommodative monetary policy for some time yet, as house price inflation cools and business and consumer sentiment remains in flux post the installment of the new government – a coalition of the New Zealand Labour Party and New Zealand First.
Notwithstanding the political machinations of the new government, we see the local economy as continuing to perform well, especially when one considers the additional benefit of tailwinds from an improving global economy.
On this basis, we anticipate that domestic bond yields will steadily move higher as investors begin to factor-in the next move in our Official Cash Rate, which we forecast to be a hike, sometime next year.
As such, we continue with our recent positioning; favouring investment exposures in medium tenor securities and an allocation to fixed interest assets that are fast approaching maturity and offer compelling yields.
For more information on the Summer New Zealand Fixed Interest 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.