CASH FUNDS PERFORMANCE
The RBA’s overnight cash rate target remained unchanged at 4.35% in October. 3-month BBSW slipped 1bp to 4.42% while 6-month BBSW finished the month 2bps higher at 4.64%. At the end of the month, cash futures contracts implied the actual cash rate would average 4.33% in November, 4.31% in December, 4.27% in February 2025 and 4.14% in May 2025. The actual cash rate at the end of October was 4.34%.
The benchmark Bloomberg AusBond Bank Bill index returned 0.37% over the month and 4.45% over the 12 months to the end of October.
| FUND NAME | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|
| Adelaide Cash Management Trust | 0.24 | 0.65 | 2.37 | 1.52 | 0.95 |
| IOOF Cash Management Trust | 0.35 | 1.03 | 4.50 | 2.98 | 1.93 |
| Sandhurst Cash Common Fund | 0.25 | 0.65 | 2.35 | 1.43 | 0.88 |
| UBS Cash | 0.36 | 1.12 | 4.53 | 3.00 | 1.88 |
ENHANCED CASH FUNDS PERFORMANCE
The AMP Capital Managed Treasury Fund produced a return of 1.40% in October, making it the month’s highest-returning enhanced cash fund in the survey. The Smarter Money Active Cash Fund returned 0.70% to rank second while the Mutual Income Fund was just behind with a return of 0.69%.
The returns of all three funds comfortably outperformed the 0.37% return produced by the Bloomberg AusBond Bank Bill Index in October. All three funds also exceeded the 0.50% returned by the AusBond FRN Index.
In terms of performance over the twelve months to the end of October, the Realm Short Term Income Fund retained the title of highest performing fund by producing a return of 7.24% for the period. The Prime Value Enhanced Income Fund moved into second place after it returned 7.08% while the Perpetual High Grade Treasury Fund retained third place with a return of 6.45%.
The above-mentioned funds all outperformed the Bank Bill Index and the FRN Index over this period. The Bloomberg AusBond Bank Bill and FRN indices returned 4.45% and 5.86% respectively over the 12-month period to the end of October.
| FUND NAME | ASX mFund | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|---|
| AMP Capital Managed Treasury | 1.40 | 2.20 | 5.83 | 3.44 | 2.25 | |
| Antares Income Fund | ANT01 | 0.65 | 1.54 | 6.33 | 4.02 | 2.92 |
| Australian Ethical Cash Trust | 0.43 | 1.21 | 5.12 | 3.17 | 2.07 | |
| BT Wholesale Enhanced Cash | 0.56 | 1.33 | 5.42 | 3.46 | 2.57 | |
| Dimensional Short Term Fixed Interest | 0.37 | 1.09 | 4.44 | 2.99 | 1.96 | |
| Fiducian Capital Safe | 0.38 | 1.11 | 4.70 | 0.30 | 0.03 | |
| IOOF MultiMix Cash Enhanced Trust | 0.49 | 1.31 | 5.43 | 3.30 | 2.36 | |
| Legg Mason Western Asset Conservative Income Fund | 0.36 | 1.27 | 5.60 | 3.35 | 2.28 | |
| Mutual Income Fund | 0.69 | 1.60 | 7.08 | 4.28 | 3.16 | |
| Henderson Cash Enhanced Trust | 0.45 | 1.29 | 5.55 | 3.31 | 2.47 | |
| Perpetual High Grade Treasury | 0.62 | 1.48 | 6.45 | 4.06 | 3.11 | |
| Prime Value Enhanced Income Fund | 0.32 | 1.93 | 5.53 | 2.62 | 1.86 | |
| Realm Short Term Income Fund | RLM02 | 0.57 | 1.64 | 7.24 | 4.53 | 3.68 |
| Sandhurst Strategic Income A | 0.56 | 0.80 | 1.11 | 0.70 | 0.43 | |
| Smarter Money Active Cash Fund | 0.70 | 1.57 | 6.39 | 3.64 | 2.70 | |
| UBS Cash Plus | 0.35 | 1.18 | 5.06 | 3.27 | 2.18 | |
| Vanguard Cash Reserve | 0.37 | 1.12 | 4.53 | 2.98 | 1.85 | |
| Vanguard Cash Plus | 0.25 | 1.11 | 4.95 | 2.93 | 1.92 | |
| Bloomberg AusBond Bank 0+Y TR AUD | 0.37 | 1.12 | 4.45 | 2.94 | 1.87 |
*End of October 2024. Return in AUD after fees.