Cash Funds July 2016

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Cash funds performance

IOOF retained its usual top-ranked position for highest return in July with a return after fees of just under 0.19% for the month. The UBS Cash Trust was pushed back into second place after a brief stint at the top with a return of 0.175% for July. (The BT Premium Cash fund, which had the second-highest performance in June, has not published its July figures at the time of writing.)

Over the twelve months to July 2016, IOOF’s fund was again the best performer with a twelve month return of 2.33%. It was followed by UBS Cash Trust’s 2.13% return and both cash accounts held their respective positions over all time periods from 1 month to 5 years.

The benchmark Bloomberg AusBond Bank Bill index returned 0.173% for the month, 2.23% for 1 year and 3.04% (annualised) over 5 years. IOOF’s fund outperformed the index all time periods from 1 month to 5 years and it was the only one of the cash funds in the survey to do so.

CASH FUNDS

AUSTRALIAN CASH FUNDS1m (%)3m (%)1y (%)3y (%)5y (%)
Adelaide Cash Management Trust0.110.331.461.772.34
BT Premium Cash0.160.512.00
CFS Cash Management Trust0.090.301.261.582.16
CFS Premier Cash Management Trust0.130.431.752.022.62
IOOF Cash Management Trust0.190.572.332.633.20
Sandhurst Cash Common Fund0.130.401.581.782.31
UBS Cash0.180.532.132.362.96

Enhanced cash funds performance

In the enhanced cash category, the best performing fund in July and for the third month in a row was the Smarter Money Active Cash (SMAC) Fund with a return of 0.43% (previously 0.26%). The second highest return in this category came from MIF whose 0.41% was almost as impressive as SMAC’s performance. These returns are well up on June where SMAC produced 0.26%. Smarter Money’s fund outperformed the Bloomberg AusBond Bank Bill Index by 24bps but it fell short of the Bloomberg AusBond FRN index which returned 0.37% which is consistent with SMAC’s practice of investing in a combination of bank deposits and investment-grade floating rate notes.

Over the year, the best performing fund in the YieldReport survey for the second month in row was the Mutual Enhanced Cash Fund (MIF) with a return of 3.11% after fees. This fund was only set up in April 2013 and so 3 year and 5 year returns are not available. The UCA Enhanced Cash fund’s performance of 2.98% meant it shared second place with Smarter Money’s fund for the last over the year.

ENHANCED CASH FUNDS

AUSTRALIAN ENHANCED CASH FUNDS1m (%)3m (%)1y (%)3y (%)5y (%)
AMP Capital Managed Treasury0.180.561.172.543.18
Australian Ethical Cash Trust0.160.500.842.283.14
BT Enhanced Cash
BT Wholesale Enhanced Cash0.200.671.212.863.76
Dimensional Short Term Fixed Interest0.170.551.172.483.10
Fiducian Capital Safe0.160.520.982.363.08
IOOF MultiMix Cash Enhanced Trust0.230.641.252.923.82
Legg Mason Western Asset Cash Plus A0.250.751.322.843.76
MIF0.411.033.11
MLC Wholesale Horizon 1 Bond Portfolio0.390.911.812.733.45
Henderson Cash Enhanced Trust0.260.681.333.044.02
Perpetual High Grade Treasury0.300.951.633.744.44
Sandhurst Strategic Income A0.240.751.423.06
Smarter Money Active Cash Fund0431.302.983.50
UBS Cash Plus0.250.671.312.873.45
UCA Enhanced Cash Portfolio0.240.741.483.624.34
Vanguard Cash Reserve0.150.51.072.352.89
Vanguard Cash Plus0.210.711.382.53.11
Bloomberg AusBond Bank 0+Y TR AUD0.170.531.112.483.05
*End of July 2016. Return in AUD after fees.
Underlined funds can be applied for and redeemed via the ASX mFund platform