Cash Funds June 2016

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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.

CASH FUNDS

AUSTRALIAN CASH FUNDS1m (%)3m (%)1y (%)3y (%)5y (%)
Adelaide Cash Management Trust0.100.351.481.802.39
BT Premium Cash0.160.512.00
CFS Cash Management Trust0.110.311.281.612.21
CFS Premier Cash Management Trust0.150.451.762.052.67
IOOF Cash Management Trust0.190.582.342.663.25
Sandhurst Cash Common Fund0.130.411.591.802.36
UBS Cash0.150.552.122.393.01

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 FUNDS1m (%)3m (%)1y (%)3y (%)5y (%)
AMP Capital Managed Treasury0.170.612.272.573.23
Australian Ethical Cash Trust0.130.511.462.353.18
BT WE BT Enhanced Cash0.170.591.692.323.22
BT Wholesale Enhanced Cash0.220.742.252.893.81
Dimensional Short Term Fixed Interest0.150.592.282.523.16
Fiducian Capital Safe0.170.561.942.393.12
IOOF MultiMix Cash Enhanced Trust0.150.662.382.973.85
Legg Mason Western Asset Cash Plus A0.210.772.442.853.79
MIF0.141.283.17
MLC Wholesale Horizon 1 Bond Portfolio0.140.952.302.783.47
Henderson Cash Enhanced Fund0.150.712.463.074.04
Perpetual High Grade Treasury0.251.012.673.764.46
Sandhurst Strategic Income A0.220.832.343.10
Smarter Money Active Cash Fund0.261.492.893.47
UBS Cash Plus0.160.682.422.883.49
UCA Enhanced Cash Portfolio0.250.753.033.674.41
Vanguard Cash Reserve0.170.532.132.382.94
Vanguard Cash Plus0.210.802.342.553.15
Bloomberg AusBond Bank Bill0.160.562.242.513.09
*End of June 2016. Return in AUD after fees.
Underlined funds can be applied for and redeemed via the ASX mFund platform