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Cash Funds July 2017

Cash funds performance

The overnight cash rate was unchanged at 1.50% through July and bank bill rates slipped 1bps lower to 1.69%.

IOOF’s Cash Management Trust was the best performed fund in this sector with a return of 0.15% for the month.

The UBS Cash fund was next with 0.14% and BT’s Premium Cash fund was third with 0.13%.

Over the twelve months to July 2017, the top three rankings were again unchanged when compared to June’s rankings. IOOF’s fund was the best performer with a twelve month return of 2.01%, followed by the UBS Cash fund’s 1.76% return and then BT’s Premium Cash fund with 1.75%.

The benchmark Bloomberg AusBond Bank Bill index returned 0.15% for the month, 1.79% for 1 year and 2.49% (annualised) over 5 years. IOOF’s fund outperformed the index in all time periods 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 Trust0.080.251.021.441.79
BT Premium Cash0.130.401.752.052.39
CFS Cash Management Trust0.060.220.901.261.60
CFS Premier Cash Management Trust0.110.331.331.712.05
IOOF Cash Management Trustn/an/an/an/an/a
Perpetual Cash Management0.070.220.911.251.54
Sandhurst Cash Common Fundn/an/an/an/an/a
UBS Cash0.140.431.762.102.43

Enhanced cash funds performance

Perpetual’s High Grade Treasury Fund’s 0.33% return in July was the highest in the YieldReport survey and it pushed Prime Value’s Cash Plus Fund out of the top spot and into third position. BT’s Wholesale Enhanced Cash Fund returned 0.32% to place it second and the third-placed Prime Value fund returned 0.29%.

All three funds exceeded the 0.30% return produced by the Bloomberg AusBond Bank Bill index but none of them exceeded the Bloomberg AusBond FRN index return of 0.37% in July.

In terms of performance over the twelve months to July 2017, Prime Value’s Cash Plus Fund and Mutual’s MIF retained their rankings from last month. Prime Value’s fund returned 5.75% while Mutual’s fund returned 4.18%. Smarter Money’s Active Cash Fund was demoted from third place by Perpetual High Grade Treasury which produced the third-highest return of 3.49%. The Bloomberg AusBond Bank Bill index and the Bloomberg AusBond FRN index returned 1.79% and 3.52% respectively over the same period.

BT’s Wholesale Enhanced Cash Fund by exposure and credit rating:

source: BT July 2017 fact sheet

ENHANCED CASH FUNDS

AUSTRALIAN ENHANCED CASH FUNDSASX
mFund
1m (%)3m (%)1y (%)3y (%)5y (%)
AMP Capital Managed Treasury0.170.502.002.272.66
Antares Income Fundmfund0.250.743.022.80N/A
Australian Ethical Cash Trust0.160.451.741.782.57
BT Enhanced Cash0.280.722.612.182.76
BT Wholesale Enhanced Cash0.320.863.182.743.33
Dimensional Short Term Fixed Interest0.170.451.952.242.53
Fiducian Capital Safe0.170.491.972.072.61
IOOF MultiMix Cash Enhanced Trust0.290.702.552.553.27
Legg Mason Western Asset Cash Plus A0.230.672.962.673.40
MIF0.290.834.183.48
MLC Wholesale Horizon 1 Bond Portfolio0.260.592.362.452.86
Henderson Cash Enhanced Trust0.290.772.872.703.54
Perpetual High Grade Treasury0.330.893.493.224.09
Prime Value Cash Plus Fund0.291.025.753.560.00
Sandhurst Strategic Income A0.270.672.782.664.05
Smarter Money Active Cash Fund0.270.783.463.224.15
UBS Cash Plus0.300.672.512.603.00
UCA Enhanced Cash Portfolio0.210.662.683.113.64
Vanguard Cash Reserve0.150.451.802.112.37
Vanguard Cash Plus0.210.522.132.362.57
Bloomberg AusBond Bank 0+Y TR AUD0.150.441.792.192.49

*End of July 2017. Return in AUD after fees.

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