Managed Funds

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Cash Funds May 2017

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.

CASH FUNDS

AUSTRALIAN CASH FUNDS1m (%)3m (%)1y (%)3y (%)5y (%)
Adelaide Cash Management Trust0.080.251.061.501.86
BT Premium Cash0.130.401.752.052.39
CFS Cash Management Trust0.080.220.961.311.69
CFS Premier Cash Management Trust0.110.321.391.762.13
IOOF Cash Management Trust0.160.492.052.392.74
Perpetual Cash Management0.050.200.961.301.61
Sandhurst Cash Common Fund0.110.311.321.611.89
UBS Cash0.140.441.812.152.49

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 FUNDS1m (%)3m (%)1y (%)3y (%)5y (%)
AMP Capital Managed Treasury0.170.52.022.312.72
Antares Income Fund0.210.662.732.82N/A
Australian Ethical Cash Trust0.130.391.711.832.62
BT Enhanced Cash0.20.62.422.172.8
BT Wholesale Enhanced Cash0.250.742.982.733.37
Dimensional Short Term Fixed Interest0.180.532.022.32.59
Fiducian Capital Safe0.140.421.942.112.69
IOOF MultiMix Cash Enhanced Trust0.220.612.452.593.37
Legg Mason Western Asset Cash Plus A0.170.532.912.693.51
MIF0.270.934.163.74
MLC Wholesale Horizon 1 Bond Portfolio0.30.752.62.512.91
Henderson Cash Enhanced Trust0.240.682.762.743.65
Perpetual High Grade Treasury0.250.793.423.294.15
Prime Value Cash Plus Fund0.31.26.6
Sandhurst Strategic Income A0.190.532.762.724.05
Smarter Money Active Cash Fund0.230.633.63.34.28
UBS Cash Plus0.210.622.452.643.02
UCA Enhanced Cash Portfolio0.230.672.733.193.73
Vanguard Cash Reserve0.160.461.832.162.43
Vanguard Cash Plus0.230.642.262.422.58
Bloomberg AusBond Bank 0+Y TR AUD0.150.451.842.252.55

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

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