Summer New Zealand Fixed Interest

Summer New Zealand Fixed Interest fund performance update as at 31 August 2017. 

Fund at a glance

Unit price (as at 31 August 2017): $1.0202

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

Fund objective and strategy

See the New Zealand Fixed Interest page for the Summary of investment objective and strategy.

Fund returns

 Total since inception1 Month3 Months6 Months
Fund 1.48% 0.39% 0.86% 2.09%

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%). 

Top 10 investments

  Asset name % of fund net assets
1 ANZ Cash Deposit 6.70%
2 New Zealand Local Government Funding Agency Ltd 15/04/2020 3.00% 4.81%
3 Transpower New Zealand Ltd 30/06/2022 4.30% 4.74%
4 Auckland Council 29/09/2017 6.52% 4.12%
5 New Zealand Local Government Funding Agency Ltd 15/12/2017 6.00% 3.94%
6 Bank of New Zealand Subordinated Note 17/12/2025 5.314% 3.78%
7 ANZ Bank New Zealand Ltd 25/09/2020 4.03% 3.36%
8 New Zealand Local Government Funding Agency Ltd 15/04/2023 5.50% 3.22%
9 Sky City Entertainment Group Ltd 28/09/2022 4.65% 2.91%
10 Kiwi Property Group Limited 07/09/2023 4.00% 2.59%

The top 10 investments make up 40.17% of the fund.

Manager's comments

Summer New Zealand Fixed Interest delivered a return of 0.39% for August.

Messaging from key global central banks over the month indicated to us that the next evolution in 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 retreats in the face of an uncertain election result.

We continue with our recent positioning: orientating away from longer-dated bonds, concentrating investments into medium tenor securities and channeling cash into securities that are fast approaching maturity and offer compelling yields.

We believe the portfolio is well positioned for the second half of the year.

 

 

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.