Cash Funds May 2016

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Cash funds performance

After months of no change in the top-performer we finally have a change. Of the cash funds surveyed by YieldReport, the best performer* in May was the UBS Cash Trust with a return of 0.20%. In a reversal of fortunes it just pipped IOOF’s CMT, although after rounding to two decimal places, the two funds were tied.  However, as was the case at the end of April, IOOF’s CMT had the best performance in time periods ranging from 3 months to 5 years, with the UBS cash fund in second place. BT’s Premium Cash Fund was third across all time periods.

The benchmark Bloomberg AusBond Bank Bill index returned 0.19% for the month, 2.25% for 1 year and 3.14% (annualised) over 5 years. UBS’ 1 month performance was in line with the index but it underperformed over other periods, while IOOF outperformed the index in the 1, 3 and 5 year investment periods.

*One fund has not yet published its performance figures at the end of May

AUSTRALIAN CASH FUNDS1m (%)3m (%)1y (%)3y (%)5y (%)
Adelaide Cash Management Trust0.130.381.501.832.44
BT Premium Cash0.180.532.022.292.91
CFS Cash Management Trust0.110.331.271.632.25
CFS Premier Cash Management Trust0.150.461.762.062.71
IOOF Cash Management Trust0.200.602.352.683.29
Perpetual Cash Management0.120.351.301.552.17
Sandhurst Cash Common Fund0.140.421.591.832.40
UBS Cash0.200.592.122.423.05

Enhanced cash funds performance

In the enhanced cash category, the best performing fund in May was the Smarter Money Active Cash (SMAC) Fund with a return of 0.61% for the month. Its performance was lower than the previous month’s top performer (0.66%) but after a 25bps rate cut from the RBA, a lower number is to be expected and it was 42bps higher than the benchmark AusBond Bank Bill Index. The Smarter Money Active Cash Fund was April second place-getter and its performance in May pushed April’s winner, MIF, into second place.

SMAC is designed to carry very low interest rate duration risk and credit risk. At the end of May, SMAC’s portfolio weight of floating rate notes and asset-backed securities accounted for 77.5% while cash equivalents accounted for the balance.

AUSTRALIAN ENHANCED CASH FUNDS1m (%)3m (%)1y (%)3y (%)5y (%)
AMP Capital Managed Treasury0.210.652.282.593.29
Australian Ethical Cash Trust0.220.511.432.363.22
BT WE BT Enhanced Cash0.200.451.602.243.26
BT Wholesale Enhanced Cash0.250.592.162.803.85
Dimensional Short Term Fixed Interest0.220.652.282.543.23
Fiducian Capital Safe0.200.582.022.433.14
IOOF MultiMix Cash Enhanced Trust0.260.822.452.953.89
Legg Mason Western Asset Cash Plus A0.290.812.422.893.82
MIF0.471.922.82
MLC Wholesale Horizon 1 Bond Portfolio0.381.292.232.663.50
Henderson Cash Enhanced Fund0.270.922.533.064.09
Perpetual High Grade Treasury0.401.042.573.704.49
Sandhurst Strategic Income A0.290.822.263.00
Smarter Money Active Cash Fund0.611.892.573.37
UBS Cash Plus0.260.782.442.883.56
UCA Enhanced Cash Portfolio0.250.753.193.824.57
Vanguard Cash Reserve0.190.562.142.392.98
Vanguard Cash Plus0.300.762.252.533.20
Bloomberg AusBond Bank Bill0.190.592.252.533.14
*End of May 2016. Return in AUD after fees.
Underlined funds can be applied for and redeemed via the ASX mFund platform