Cash funds performance
The overnight cash rate was unchanged at 1.50% through May and bank bill rates fell 1bps to 1.74%. The UBS Cash Fund’s time as the top-ranked fund was short-lived and IOOF regained the top spot in May. IOOF’s Cash Management Trust returned 0.16% while the UBS fund returned 0.14%. BT’s Premium Cash fund had the third-highest return for the month with 0.13%.
Over the twelve months to May 2017, the top three rankings are again unchanged when compared to April’s rankings. IOOF’s fund was again the best performer with a twelve month return of 2.05%. It was followed by UBS Cash Trust’s 1.81% return and then BT’s Premium Cash fund with 1.75%.
The benchmark Bloomberg AusBond Bank Bill index returned 0.15% for the month, 1.84% for 1 year and 2.50% (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||1.06||1.50||1.86|
|BT Premium Cash||0.13||0.40||1.75||2.05||2.39|
|CFS Cash Management Trust||0.08||0.22||0.96||1.31||1.69|
|CFS Premier Cash Management Trust||0.11||0.32||1.39||1.76||2.13|
|IOOF Cash Management Trust||0.16||0.49||2.05||2.39||2.74|
|Perpetual Cash Management||0.05||0.20||0.96||1.30||1.61|
|Sandhurst Cash Common Fund||0.11||0.31||1.32||1.61||1.89|
Enhanced cash funds performance
The survey of enhanced cash funds has been expanded recently and one of the new entries has produced one of the highest one month return in May. The Prime Value Cash Plus Fund and the MLC Wholesale Horizon 1 Bond Portfolio tied for top position, as each fund returned 0.30% over May. Mutual’s MIF fund returned 0.27% to place it in third position. The Bloomberg AusBond Bank Bill index and the Bloomberg AusBond FRN index returned 0.15% and 0.28% respectively over May.
Over the twelve months to May 2017, Prime Value’s Cash Plus Fund debuted in the top spot with its 6.60% return. Mutual’s MIF fund was pushed into second place with a return of 4.16%, while the Smarter Money Active Cash Fund produced the third-highest return of 3.60%. The Bloomberg AusBond Bank Bill index and the Bloomberg AusBond FRN index returned 1.84% and 3.30% respectively over the same period.
The Prime Value fund outperformed in all time periods but as its inception date was in June 2014 it is yet to produced returns over 5 years. The fund states it invests with an emphasis on capital preservation and it invests in a diversified range of listed and unlisted debt securities. These investments are either vanilla debt securities or “hybrids” and the majority of interest rates are reset every quarter.
ENHANCED CASH FUNDS
|AUSTRALIAN ENHANCED CASH FUNDS||1m (%)||3m (%)||1y (%)||3y (%)||5y (%)|
|AMP Capital Managed Treasury||0.17||0.5||2.02||2.31||2.72|
|Antares Income Fund||0.21||0.66||2.73||2.82||N/A|
|Australian Ethical Cash Trust||0.13||0.39||1.71||1.83||2.62|
|BT Enhanced Cash||0.2||0.6||2.42||2.17||2.8|
|BT Wholesale Enhanced Cash||0.25||0.74||2.98||2.73||3.37|
|Dimensional Short Term Fixed Interest||0.18||0.53||2.02||2.3||2.59|
|Fiducian Capital Safe||0.14||0.42||1.94||2.11||2.69|
|IOOF MultiMix Cash Enhanced Trust||0.22||0.61||2.45||2.59||3.37|
|Legg Mason Western Asset Cash Plus A||0.17||0.53||2.91||2.69||3.51|
|MLC Wholesale Horizon 1 Bond Portfolio||0.3||0.75||2.6||2.51||2.91|
|Henderson Cash Enhanced Trust||0.24||0.68||2.76||2.74||3.65|
|Perpetual High Grade Treasury||0.25||0.79||3.42||3.29||4.15|
|Prime Value Cash Plus Fund||0.3||1.2||6.6|
|Sandhurst Strategic Income A||0.19||0.53||2.76||2.72||4.05|
|Smarter Money Active Cash Fund||0.23||0.63||3.6||3.3||4.28|
|UBS Cash Plus||0.21||0.62||2.45||2.64||3.02|
|UCA Enhanced Cash Portfolio||0.23||0.67||2.73||3.19||3.73|
|Vanguard Cash Reserve||0.16||0.46||1.83||2.16||2.43|
|Vanguard Cash Plus||0.23||0.64||2.26||2.42||2.58|
|Bloomberg AusBond Bank 0+Y TR AUD||0.15||0.45||1.84||2.25||2.55|
*End of May 2017. Return in AUD after fees.