Cash fund performance
The overnight cash rate was unchanged at 1.50% through October and 90 day bank bill rates dropped 2bps to 1.69%. The UBS Cash Fund produced the highest return for the month in this sector for a second month in a row. It returned 0.14% while BT’s Premium Cash fund’s returned 0.13% and IOOF’s Cash Management Trust had the third highest return of 0.11%.
Over the twelve months to October 2017, the funds in the top three rankings were again unchanged when compared to September’s rankings. IOOF’s fund was the best performer with a twelve month return of 1.85%, followed by the UBS Cash fund’s 1.71% and then BT’s Premium Cash fund with 1.62%.
The benchmark Bloomberg AusBond Bank Bill index returned 0.15% over October, 1.76% for 1 year and 2.39% (annualised) over 5 years. IOOF’s fund has under-performed the index in recent months but it out-performed in all other time periods. No other funds in the survey outperformed in any of the time periods.
|AUSTRALIAN CASH FUNDS||1m (%)||3m (%)||1y (%)||3y (%)||5y (%)|
|Adelaide Cash Management Trust||0.08||0.25||1.00||1.36||1.69|
|BT Premium Cash||0.13||n/a||1.62||1.92||2.19|
|CFS Cash Management Trust||0.05||0.17||0.83||1.16||1.50|
|CFS Premier Cash Management Trust||0.09||0.28||1.24||1.62||1.94|
|IOOF Cash Management Trust||0.11||0.39||1.85||2.23||2.55|
|Perpetual Cash Management||0.06||0.20||0.86||1.17||1.45|
Enhanced cash fund performance
Prime Value Cash Plus Fund returned 0.39% in October to make it the highest–returning fund in this sector of the YieldReport survey. MLC’s Wholesale Horizon 1 Bond Portfolio returned 0.32% which placed it second in the monthly rankings while Smarter Money’s Active Cash Fund was just behind with 0.30%.All three funds exceeded the 0.15% return produced by the Bloomberg AusBond Bank Bill index and all of them exceeded the Bloomberg AusBond FRN index return of 0.29%.
In terms of performance over the twelve months to October 2017, Prime Value’s Cash Plus Fund retained its position as best-performing fund in this sector. Prime Value’s fund returned 4.74% while Mutual’s MIF also retained its September ranking with a return of 3.49% and Perpetual’s High Grade Treasury Fund returned 3.34%. The Bloomberg AusBond Bank Bill and FRN indices returned 1.76% and 3.36% respectively over the same period.
ENHANCED CASH FUNDS
|AUSTRALIAN ENHANCED CASH FUNDS||ASX|
|1m (%)||3m (%)||1y (%)||3y (%)||5y (%)|
|AMP Capital Managed Treasury||0.16||0.45||1.96||2.20||2.52|
|Antares Income Fund||mfund||0.27||0.75||2.72||2.79||N/A|
|Australian Ethical Cash Trust||0.16||0.39||1.68||1.70||2.43|
|BT Enhanced Cash||0.24||0.66||2.58||2.19||2.56|
|BT Wholesale Enhanced Cash||0.28||0.80||3.14||2.75||3.13|
|Dimensional Short Term Fixed Interest||0.21||0.44||1.88||2.19||2.43|
|Fiducian Capital Safe||0.15||0.43||1.84||2.00||2.43|
|IOOF MultiMix Cash Enhanced Trust||0.24||0.58||2.44||2.51||3.03|
|Legg Mason Western Asset Cash Plus A||0.20||0.57||2.62||2.62||3.13|
|MLC Wholesale Horizon 1 Bond Portfolio||0.32||0.56||2.32||2.47||2.69|
|Henderson Cash Enhanced Trust||0.23||0.63||2.71||2.68||3.22|
|Perpetual High Grade Treasury||0.30||0.75||3.34||3.15||3.87|
|Prime Value Cash Plus Fund||0.39||0.99||4.74||3.96||n/a|
|Sandhurst Strategic Income A||0.23||0.58||2.54||2.60||4.05|
|Smarter Money Active Cash Fund||0.30||0.65||2.96||3.16||3.74|
|UBS Cash Plus||0.24||0.57||2.45||2.55||2.87|
|UCA Enhanced Cash Portfolio||0.21||0.62||2.63||3.00||3.52|
|Vanguard Cash Reserve||0.15||0.41||1.74||2.03||2.28|
|Vanguard Cash Plus||0.24||0.51||2.12||2.33||2.48|
|Bloomberg AusBond Bank 0+Y TR AUD||0.15||0.43||1.76||2.11||2.39|
*End of October 2017. Return in AUD after fees.