CASH FUNDS PERFORMANCE
The RBA’s overnight cash rate target was raised by another 25bps to 3.35% in February. 3-month BBSW finished the month 19bps higher at 3.56% while 6-month BBSW gained 21bps to 3.93%. Expectations in the cash futures market moved to reflect a steeper path for the actual cash rate through 2023 and the first half of 2024. At the end of the month, contracts implied the actual cash rate would rise from 3.32% at the end of February to an average of 4.22% in February 2024.
The benchmark Bloomberg AusBond Bank Bill index returned 0.24% over the month and 1.76% over the 12 months to the end of February.
| AUSTRALIAN CASH FUNDS | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|
| Adelaide Cash Management Trust | 0.15 | 0.39 | 0.62 | 0.27 | 0.36 |
| BT Premium Cash | 0.26 | 0.80 | 1.70 | 0.62 | 0.95 |
| IOOF Cash Management Trust | 0.17 | 0.51 | 1.16 | 0.49 | 1.01 |
| Sandhurst Cash Common Fund | 0.13 | 0.39 | 0.52 | 0.20 | 0.37 |
| UBS Cash | 0.25 | 0.80 | 1.82 | 0.67 | 1.03 |
ENHANCED CASH FUNDS PERFORMANCE
Mutual’s Income Fund produced a return of 0.70% in February, thus making it the month’s highest-returning enhanced cash fund in the survey. The Antares Income Fund produced the next-highest return, 0.62%, and the Realm Short Term Income Fund was not far behind it with a return of 0.58%.
The returns of all three funds easily outperformed the 0.24% return produced by the Bloomberg AusBond Bank Bill Index in February. All three funds also produced returns in excess of the 0.43% returned by the AusBond FRN Index.
In terms of performance over the twelve months to the end of February, Realm’s Short Term Income Fund took over the title of highest performing fund by producing a returns of 2.08% for the period. The Perpetual High Grade Treasury Fund was just behind it with a return of 2.07% while the UBS Cash Plus Fund’s return of 1.97% ranked third.
The Bloomberg AusBond Bank Bill and FRN indices returned 1.76% and 2.17% respectively over the 12-month period to the end of February. The above-mentioned funds all outperformed the Bank Bill Index but all three underperformed the FRN Index.
| AUSTRALIAN ENHANCED CASH FUNDS | ASX mFund | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|---|
| AMP Capital Managed Treasury | 0.24 | 0.73 | 1.79 | 0.79 | 1.17 | |
| Antares Income Fund | ANT01 | 0.62 | 1.80 | 1.52 | 1.13 | 1.53 |
| Australian Ethical Cash Trust | 0.29 | 0.89 | 1.61 | 0.73 | 1.04 | |
| BT Wholesale Enhanced Cash | 0.42 | 1.14 | 1.97 | 1.27 | 1.62 | |
| Dimensional Short Term Fixed Interest | -0.04 | 0.45 | 0.12 | 0.05 | 0.81 | |
| Fiducian Capital Safe | 0.25 | 0.81 | 1.56 | 0.61 | 0.96 | |
| IOOF MultiMix Cash Enhanced Trust | 0.42 | 1.22 | 1.49 | 1.01 | 1.33 | |
| Legg Mason Western Asset Conservative Income Fund | 0.29 | 1.01 | 1.67 | 0.88 | 1.28 | |
| Mutual Income Fund | 0.70 | 1.72 | 1.92 | 1.43 | 1.91 | |
| MLC Wholesale Horizon 1 Bond Portfolio | 0.05 | 1.50 | -0.43 | -0.11 | 0.71 | |
| Henderson Cash Enhanced Trust | 0.44 | 1.28 | 1.31 | 1.13 | 1.46 | |
| Perpetual High Grade Treasury | 0.52 | 1.53 | 2.07 | 1.53 | 2.00 | |
| Prime Value Enhanced Income Fund | 0.43 | 1.39 | 0.39 | 0.54 | 1.56 | |
| Realm Short Term Income Fund | RLM02 | 0.58 | 1.56 | 2.08 | 2.16 | 2.39 |
| Sandhurst Strategic Income A | 0.39 | 1.01 | 1.42 | 0.88 | 1.31 | |
| Smarter Money Active Cash Fund | 0.55 | 1.67 | 1.44 | 1.00 | 1.47 | |
| UBS Cash Plus | 0.30 | 1.06 | 1.83 | 0.85 | 1.32 | |
| Vanguard Cash Reserve | 0.24 | 0.77 | 1.75 | 0.60 | 0.99 | |
| Vanguard Cash Plus | 0.14 | 0.76 | 1.19 | 0.57 | 1.14 | |
| Bloomberg AusBond Bank 0+Y TR AUD | 0.24 | 0.76 | 1.76 | 0.66 | 1.06 |
*End of February 2023. Return in AUD after fees.