Cash Funds October 2015


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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 Funds1m (%)3m (%)1y (%)3y (%)5y (%)
Adelaide Cash Management Trust0.130.381.722.032.76
BT Premium Cash0.160.492.160.000.00
CFS Cash Management Trust0.000.211.371.792.53
CFS Premier Cash Management Trust0.000.281.782.212.98
EQT Cash Management0.110.351.691.792.48
Perpetual Cash Management0.100.301.431.712.46
Sandhurst Cash Common Fund0.130.391.781.982.70
UBS Cash0.180.522.302.623.36

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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.

Enhanced Cash     
Name1m (%)3m (%)1y (%)3y (%)5y (%)
AMP Capital Managed Treasury0.180.542.432.823.66
Australian Ethical Cash Trust0.110.331.822.953.68
BT WE BT Enhanced Cash0.100.281.912.713.74
BT Wholesale Enhanced Cash0.150.422.473.284.35
Dimensional Short Term Fixed Interest0.200.542.462.693.62
Fiducian Capital Safe0.170.462.122.773.61
IOOF MultiMix Cash Enhanced Trust0.230.522.523.384.33
Legg Mason Western Asset Cash Plus A0.190.542.363.394.31
MLC Wholesale Horizon 1 Bond Portfolio0.260.342.402.823.79
Perennial Cash Enhanced Trust0.240.532.583.554.58
Perpetual High Grade Treasury0.150.362.824.255.09
Sandhurst Strategic Income A0.170.482.543.680.00
Smarter Money Active Cash Fund0.220.272.663.97
UBS Cash Plus0.190.532.643.114.01
Vanguard Cash Reserve0.180.522.292.543.30
Vanguard Cash Plus0.190.512.522.653.52
Bloomberg AusBond Bank Bill Index0.190.552.432.693.46

*End of October 2015. Return in AUD after fees.
Underlined funds can be applied for and redeemed via the ASX mFund platform