Summer New Zealand Fixed Interest fund performance summary as at 30 September 2019.
Unit price (as at 30 September 2019): $1.1344
Date the fund started: 19 September 2016
For information on fees, see our Fees page.
See the New Zealand Fixed Interest 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||10.61%|
|2||New Zealand Local Government Funding Agency Ltd 15/04/2025 2.75%||4.64%|
|3||New Zealand Local Government Funding Agency Ltd 15/04/2027 4.50%||3.29%|
|4||Housing New Zealand 3.42% 18/10/2028||3.06%|
|5||Vector Ltd 14/03/2024 4.996%||2.67%|
|6||Housing New Zealand 3.36% 12/06/2025||2.66%|
|7||Port of Tauranga Limited 4.792% 29/01/2021||2.42%|
|8||New Zealand Local Government Funding Agency Ltd 14/04/2033 3.50%||2.27%|
|9||New Zealand Local Government Funding Agency Ltd 15/04/2023 5.50%||2.24%|
|10||Christchurch International Airport Ltd 06/12/2019 5.15%||2.10%|
The top 10 investments make up 35.96% of the fund.
The September quarter, in general, was a positive period for fixed interest investors.
Internationally, a confluence of negative events and announcements continued to beat down on investor sentiment. In response, many of the world’s key central banks eased monetary policy by lowering official interest rates.
Indeed, our own central bank was front and centre, lowering its Official Cash Rate to 1.00% over the period via an unexpected 0.50% reduction, taking our Official Cash Rate (OCR) to its lowest level on record. The US central bank, the Federal Reserve, took a more considered approach cutting its key Fed Funds rate twice, by 0.25% each time, over the quarter.
Our assessment of events continues to be caution and our interpretation of the potential trajectory for global and local economic activity is down.
On this basis, we will continue to maintain an appropriate portfolio duration (interest rate sensitivity), adding only what we believe to be high quality security exposures to the fund.
Where we have added longer-term bond exposures, those with maturities approaching or beyond ten years, we have generally elected to do this by purchasing security exposures with the same credit rating as securities issued by the New Zealand Government. Examples here are bonds issued by the New Zealand Local Government Funding Agency and Housing New Zealand.
We think central bank assistance to financial markets will be on-going, and as such, we expect to see officials in key global economies easing monetary policy further this year.
Here, we anticipate the orthodox – such as the recent reduction to our OCR – as well as the unorthodox.
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.