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.
|AUSTRALIAN CASH FUNDS||1m (%)||3m (%)||1y (%)||3y (%)||5y (%)|
|Adelaide Cash Management Trust||0.08||0.25||1.02||1.44||1.79|
|BT Premium Cash||0.13||0.40||1.75||2.05||2.39|
|CFS Cash Management Trust||0.06||0.22||0.90||1.26||1.60|
|CFS Premier Cash Management Trust||0.11||0.33||1.33||1.71||2.05|
|IOOF Cash Management Trust||n/a||n/a||n/a||n/a||n/a|
|Perpetual Cash Management||0.07||0.22||0.91||1.25||1.54|
|Sandhurst Cash Common Fund||n/a||n/a||n/a||n/a||n/a|
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 FUNDS||ASX|
|1m (%)||3m (%)||1y (%)||3y (%)||5y (%)|
|AMP Capital Managed Treasury||0.17||0.50||2.00||2.27||2.66|
|Antares Income Fund||mfund||0.25||0.74||3.02||2.80||N/A|
|Australian Ethical Cash Trust||0.16||0.45||1.74||1.78||2.57|
|BT Enhanced Cash||0.28||0.72||2.61||2.18||2.76|
|BT Wholesale Enhanced Cash||0.32||0.86||3.18||2.74||3.33|
|Dimensional Short Term Fixed Interest||0.17||0.45||1.95||2.24||2.53|
|Fiducian Capital Safe||0.17||0.49||1.97||2.07||2.61|
|IOOF MultiMix Cash Enhanced Trust||0.29||0.70||2.55||2.55||3.27|
|Legg Mason Western Asset Cash Plus A||0.23||0.67||2.96||2.67||3.40|
|MLC Wholesale Horizon 1 Bond Portfolio||0.26||0.59||2.36||2.45||2.86|
|Henderson Cash Enhanced Trust||0.29||0.77||2.87||2.70||3.54|
|Perpetual High Grade Treasury||0.33||0.89||3.49||3.22||4.09|
|Prime Value Cash Plus Fund||0.29||1.02||5.75||3.56||0.00|
|Sandhurst Strategic Income A||0.27||0.67||2.78||2.66||4.05|
|Smarter Money Active Cash Fund||0.27||0.78||3.46||3.22||4.15|
|UBS Cash Plus||0.30||0.67||2.51||2.60||3.00|
|UCA Enhanced Cash Portfolio||0.21||0.66||2.68||3.11||3.64|
|Vanguard Cash Reserve||0.15||0.45||1.80||2.11||2.37|
|Vanguard Cash Plus||0.21||0.52||2.13||2.36||2.57|
|Bloomberg AusBond Bank 0+Y TR AUD||0.15||0.44||1.79||2.19||2.49|
*End of July 2017. Return in AUD after fees.