Cash funds performance
In May, the UBS Cash Trust provided the highest return for this sector, but it may have been an aberration as IOOF has regained the top spot in June with a return after fees of just under 0.19% for the month. The BT Premium Cash fund returned the second-highest amount (0.16%) while the UBS trust slipped back into fourth place.
Over the year to June 2016, IOOF’s fund was again the best performer, as it was for all time periods from 1 month to 5 years. The second highest performance for the year came from the UBS Cash Trust and although it slipped in the ranking for June, in all other time periods it was ranked second behind IOOF.
The benchmark Bloomberg AusBond Bank Bill index returned 0.16% for the month, 2.24% for 1 year and 3.09% (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.
|AUSTRALIAN CASH FUNDS||1m (%)||3m (%)||1y (%)||3y (%)||5y (%)|
|Adelaide Cash Management Trust||0.10||0.35||1.48||1.80||2.39|
|BT Premium Cash||0.16||0.51||2.00|
|CFS Cash Management Trust||0.11||0.31||1.28||1.61||2.21|
|CFS Premier Cash Management Trust||0.15||0.45||1.76||2.05||2.67|
|IOOF Cash Management Trust||0.19||0.58||2.34||2.66||3.25|
|Sandhurst Cash Common Fund||0.13||0.41||1.59||1.80||2.36|
Enhanced cash funds performance
In the enhanced cash category, the best performing fund in June and for the second month in a row was the Smarter Money Active Cash (SMAC) Fund with a return of 0.26%. Smarter Money’s fund narrowly pipped (1 basis point or 0.01%) the UCA Enhanced Cash and Perpetual High Grade Treasury funds which tied for second place. These returns were noticeably lower than May’s 0.61% but as yields fell to record lows along the curve, lower returns are to be expected. Even so, Smarter Money’s fund outperformed the AusBond Bank Bill Index by 9bps and it did so by investing various bank deposits and investment-grade floating rate notes.
Over the year, the best performing fund in the YieldReport survey was the Mutual Enhanced Cash Fund (MIF) with a return of 3.17% 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 was ranked second (3.03%) and Smarter Money’s fund was ranked third (2.89%) over the year.
|AUSTRALIAN ENHANCED CASH FUNDS||1m (%)||3m (%)||1y (%)||3y (%)||5y (%)|
|AMP Capital Managed Treasury||0.17||0.61||2.27||2.57||3.23|
|Australian Ethical Cash Trust||0.13||0.51||1.46||2.35||3.18|
|BT WE BT Enhanced Cash||0.17||0.59||1.69||2.32||3.22|
|BT Wholesale Enhanced Cash||0.22||0.74||2.25||2.89||3.81|
|Dimensional Short Term Fixed Interest||0.15||0.59||2.28||2.52||3.16|
|Fiducian Capital Safe||0.17||0.56||1.94||2.39||3.12|
|IOOF MultiMix Cash Enhanced Trust||0.15||0.66||2.38||2.97||3.85|
|Legg Mason Western Asset Cash Plus A||0.21||0.77||2.44||2.85||3.79|
|MLC Wholesale Horizon 1 Bond Portfolio||0.14||0.95||2.30||2.78||3.47|
|Henderson Cash Enhanced Fund||0.15||0.71||2.46||3.07||4.04|
|Perpetual High Grade Treasury||0.25||1.01||2.67||3.76||4.46|
|Sandhurst Strategic Income A||0.22||0.83||2.34||3.10|
|Smarter Money Active Cash Fund||0.26||1.49||2.89||3.47|
|UBS Cash Plus||0.16||0.68||2.42||2.88||3.49|
|UCA Enhanced Cash Portfolio||0.25||0.75||3.03||3.67||4.41|
|Vanguard Cash Reserve||0.17||0.53||2.13||2.38||2.94|
|Vanguard Cash Plus||0.21||0.80||2.34||2.55||3.15|
|Bloomberg AusBond Bank Bill||0.16||0.56||2.24||2.51||3.09|
Underlined funds can be applied for and redeemed via the ASX mFund platform