[private role=’subscriber’]Cash funds performance
Of the funds surveyed by YieldReport, the best performer for March was IOOF’s Cash Management Trust with a return of 0.20%, once again just pipping the UBS Cash Trust which returned 0.19% for the month. IOOF’s CMT also had the best performance in all of the time periods ranging from 3 months to five years. The UBS cash fund was in second place across all time periods, while the BT Premium Cash Fund was third across all time periods.
The benchmark Bloomberg AusBond Bank Bill Index returned 0.19% for the month, 2.09% for 1 year and 3.14% (annualised) over 5 years. Unlike last month where none of the funds in the survey outperformed the benchmark in any of these time periods (see table below), IOOF’s fund was in line with the AusBond index for 1 month and 3 month periods and it actually exceeded the index by around 13-15 bps for 1 year, 3 year and 5 year periods.
IOOF’s CMT invests in high quality short-term money market and bank-based securities, which includes term deposits, negotiable certificates of deposit and cash notice accounts. It takes an active approach to investing by attempting to forecast short-term paths of interest rates over the cycle.
|AUSTRALIAN CASH FUNDS||1m (%)||3m (%)||1y (%)||3y (%)||5y (%)|
|Adelaide Cash Management Trust||0.13||0.37||1.54||1.88||2.53|
|BT Premium Cash||0.18||0.51||2.03||2.33||3.00|
|CFS Cash Management Trust||0.13||0.33||1.30||1.69||2.34|
|CFS Premier Cash Management Trust||0.16||0.44||1.78||2.11||2.80|
|IOOF Cash Management Trust||0.20||0.58||2.38||2.73||3.38|
|Perpetual Cash Management||0.12||0.35||1.31||1.59||2.24|
|Sandhurst Cash Common Fund||0.14||0.39||1.61||1.86||2.48|
[private role=’subscriber’]Enhanced cash funds performance
In the enhanced cash category, the best performing fund for March was the Mutual Enhanced Cash Fund with a return of 0.78% for the month, which is 59bps more than the benchmark AusBond Bank Bill Index. The next best performer, the Smarter Money Active Cash Fund, was 20bps lower at 0.58% for the month. Mutual’s cash fund has been in existence since April 2013 and so rankings are available only for 3 month and one year periods, where it was ranked 5th out of 20 and 10th out of 20 respectively.
Mutual’s approach is to actively manage a portfolio of debt instruments offered by the major Australian banks and other approved deposit taking institutions, with small cash and negotiable certificates of deposits positions to provide liquidity. This approach leaves it with a duration of just over 2 years. Mutual typically invests in assets which reset their base interest rate frequently, usually quarterly.
|AUSTRALIAN ENHANCED CASH FUNDS||1m (%)||3m (%)||1y (%)||3y (%)||5y (%)|
|AMP Capital Managed Treasury||0.22||0.59||2.23||2.64||3.38|
|Antares All Maturities Ind Enh||-0.18||2.23||2.45||5.83||7.05|
|Australian Ethical Cash Trust||0.13||0.28||1.36||2.51||3.35|
|BT WE BT Enhanced Cash||0.03||0.35||1.51||2.30||3.37|
|BT Wholesale Enhanced Cash||0.08||0.49||2.07||2.86||3.96|
|Dimensional Short Term Fixed Interest||0.21||0.59||2.19||2.56||3.34|
|Fiducian Capital Safe||0.19||0.39||1.98||2.49||3.25|
|IOOF MultiMix Cash Enhanced Trust||0.31||0.51||2.49||3.04||4.01|
|Legg Mason Western Asset Cash Plus A||0.25||0.44||2.41||2.95||3.89|
|MLC Wholesale Horizon 1 Bond Portfolio||0.47||0.65||1.76||2.65||3.52|
|Henderson Cash Enhanced Fund||0.36||0.48||2.62||3.15||4.19|
|Perpetual High Grade Treasury||0.28||0.50||2.37||3.76||4.59|
|Sandhurst Strategic Income A||0.20||0.40||2.03||3.13|
|Smarter Money Active Cash Fund||0.65||0.30||1.79||3.26|
|UBS Cash Plus||0.25||0.57||2.40||2.93||3.62|
|UCA Enhanced Cash Portfolio||0.25||0.75||3.19||3.82||4.57|
|Vanguard Cash Reserve||0.19||0.55||2.12||2.44||3.07|
|Vanguard Cash Plus||0.17||0.59||1.96||2.56||3.24|
|Bloomberg AusBond Bank Bill||0.20||0.58||2.24||2.57||3.23|
Underlined funds can be applied for and redeemed via the ASX mFund platform