Cash funds performance
In the funds surveyed by YieldReport, and that have provided updated figures as at the date of this report, the best performer for October was BT’s Premium Cash Fund returning 0.16%. It has also performed the best over 12 months at 2.16%. All of the funds in the YieldReport tables returned lower than the benchmark for October which was 0.18%. The funds also performed worse than benchmark over 12 months. The benchmark was 2.30%.
|Cash Funds||1m (%)||3m (%)||1y (%)||3y (%)||5y (%)|
|Adelaide Cash Management Trust||0.13||0.38||1.72||2.03||2.76|
|BT Premium Cash||0.16||0.49||2.16||0.00||0.00|
|CFS Cash Management Trust||0.00||0.21||1.37||1.79||2.53|
|CFS Premier Cash Management Trust||0.00||0.28||1.78||2.21||2.98|
|EQT Cash Management||0.11||0.35||1.69||1.79||2.48|
|Perpetual Cash Management||0.10||0.30||1.43||1.71||2.46|
|Sandhurst Cash Common Fund||0.13||0.39||1.78||1.98||2.70|
Enhanced cash funds performance
In the enhanced cash category, the standout performer was the MIF fund run by Mutual Limited. The fund returned 0.35% for October nearly doubling the index performance of 0.19%. It has returned 2.83% in the 12 months to the end of October. The performance for October comes after a relatively poor September. The manager of the fund, Brian Buckley, told YieldReport that September saw bank credit sold due to rights issues and other capital raisings by the banks. Investors will often sell existing debt to take on new issues and this was a major reason for the weaker September performance. The fund held its nerve over the period and saw a good bounce back in performance in October. The current running yield of the fund is 3.93% according to Mr Buckley and they have moved the fund into a 50/50 subordinated and senior debt position to ensure the gains are captured and less subject to external geo-political shocks.
The MIF fund came in ahead of the MLC Horizon 1 fund at 0.26% for October and 2.40% for the year to end of October. The MLC fund benchmarks itself against a range of indices comprising 30% of the AusBond Bank Bill Index, 42% of the AusBond Composite 0-3 year Index and 28% of the Barclays Global Capital Aggregate 1-3 year Index (hedged for AUD).
The MLC benchmarks highlight the importance for investors of knowing what benchmarks their fund manager is attempting to match or beat. It is important to ensure that when comparing funds, an investor is comparing apples with apples. It is important to see how the manager performs against their particular benchmark and also what risks the manager is likely to take. You can read more about why benchmarks are important here.
|Name||1m (%)||3m (%)||1y (%)||3y (%)||5y (%)|
|AMP Capital Managed Treasury||0.18||0.54||2.43||2.82||3.66|
|Australian Ethical Cash Trust||0.11||0.33||1.82||2.95||3.68|
|BT WE BT Enhanced Cash||0.10||0.28||1.91||2.71||3.74|
|BT Wholesale Enhanced Cash||0.15||0.42||2.47||3.28||4.35|
|Dimensional Short Term Fixed Interest||0.20||0.54||2.46||2.69||3.62|
|Fiducian Capital Safe||0.17||0.46||2.12||2.77||3.61|
|IOOF MultiMix Cash Enhanced Trust||0.23||0.52||2.52||3.38||4.33|
|Legg Mason Western Asset Cash Plus A||0.19||0.54||2.36||3.39||4.31|
|MLC Wholesale Horizon 1 Bond Portfolio||0.26||0.34||2.40||2.82||3.79|
|Perennial Cash Enhanced Trust||0.24||0.53||2.58||3.55||4.58|
|Perpetual High Grade Treasury||0.15||0.36||2.82||4.25||5.09|
|Sandhurst Strategic Income A||0.17||0.48||2.54||3.68||0.00|
|Smarter Money Active Cash Fund||0.22||0.27||2.66||3.97|
|UBS Cash Plus||0.19||0.53||2.64||3.11||4.01|
|Vanguard Cash Reserve||0.18||0.52||2.29||2.54||3.30|
|Vanguard Cash Plus||0.19||0.51||2.52||2.65||3.52|
|Bloomberg AusBond Bank Bill Index||0.19||0.55||2.43||2.69||3.46|
Underlined funds can be applied for and redeemed via the ASX mFund platform