CASH FUNDS PERFORMANCE
The RBA’s overnight cash rate target remained unchanged at 4.35% in January. 3-month BBSW finished the month 1bp lower at 4.35% while 6-month BBSW lost 2bps to 4.43%. Expectations in the cash futures market moved to reflect a flatter, albeit declining, path for the cash rate over the next twelve months. At the end of the month, contracts implied the actual cash rate would decrease from 4.32% at the end January to an average of 3.71% in January 2025.
The benchmark Bloomberg AusBond Bank Bill index returned 0.37% over the month and 4.00% over the 12 months to the end of January.
CASH FUNDS
| AUSTRALIAN CASH FUNDS | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|
| Adelaide Cash Management Trust | 0.13 | 0.49 | 2.2 | 0.93 | 0.65 |
| BT Premium Cash | 0.37 | 1.11 | 4.09 | 1.84 | 1.39 |
| IOOF Cash Management Trust | 0.38 | 1.11 | 3.97 | 1.82 | 1.51 |
| Sandhurst Cash Common Fund | 0.13 | 0.47 | 2.05 | 0.81 | 0.6 |
| UBS Cash | 0.36 | 1.13 | 4.06 | 1.87 | 1.44 |
ENHANCED CASH FUNDS PERFORMANCE
The Realm Short Term Income Fund produced a return of 0.66% in January, thus making it the month’s highest-returning enhanced cash fund in the survey. The Sandhurst Strategic Income (Class A) was next with return of 0.53% while the IOOF Multi-Mix Cash Enhanced Trust took third place after it produced a return of 0.49%.
The returns of all three funds comfortably outperformed the 0.37% return produced by the Bloomberg AusBond Bank Bill Index in January. All three also exceeded the 0.44% returned by the AusBond FRN Index.
In terms of performance over the twelve months to the end of January, the Realm Short Term Income Fund took over the title as the highest performing fund by producing a return of 6.55% for the period. The Mutual Income Fund retained second place after it returned 6.53% while the Perpetual High Grade Treasury Fund came in third with a return of 6.04%.
The Bloomberg AusBond Bank Bill and FRN indices returned 4.00% and 5.08% respectively over the 12-month period to the end of January. The above-mentioned funds all outperformed the Bank Bill Index and the FRN Index over this period.
ENHANCED CASH FUNDS
| AUSTRALIAN ENHANCED CASH FUNDS | ASX mFund | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|---|
| AMP Capital Managed Treasury | 0.40 | 1.18 | 4.24 | 1.92 | 1.59 | |
| Antares Income Fund | ANT01 | -0.23 | 0.85 | 5.89 | 2.33 | 2.21 |
| Australian Ethical Cash Trust | 0.43 | 1.26 | 4.38 | 1.90 | 1.58 | |
| BT Wholesale Enhanced Cash | 0.45 | 1.32 | 4.87 | 2.20 | 2.12 | |
| Dimensional Short Term Fixed Interest | 0.38 | 1.22 | 3.92 | 1.21 | 1.19 | |
| Fiducian Capital Safe | 0.39 | 1.18 | 4.07 | 1.79 | 1.42 | |
| IOOF MultiMix Cash Enhanced Trust | 0.49 | 1.33 | 4.87 | 1.94 | 1.84 | |
| Legg Mason Western Asset Conservative Income Fund | 0.40 | 1.57 | 4.75 | 2.07 | 1.81 | |
| Mutual Income Fund | 0.47 | 1.77 | 6.53 | 2.80 | 2.67 | |
| MLC Wholesale Horizon 1 Bond Portfolio | 0.46 | 3.10 | 5.68 | 1.36 | 1.56 | |
| Henderson Cash Enhanced Trust | 0.43 | 1.41 | 4.93 | 1.89 | 1.98 | |
| Perpetual High Grade Treasury | 0.44 | 1.54 | 6.04 | 2.66 | 2.64 | |
| Prime Value Enhanced Income Fund | 0.33 | 1.48 | 3.83 | 1.90 | 1.78 | |
| Realm Short Term Income Fund | RLM02 | 0.66 | 1.86 | 6.55 | 3.31 | 3.08 |
| Sandhurst Strategic Income A | 0.53 | 1.35 | 5.03 | 2.15 | 1.91 | |
| Smarter Money Active Cash Fund | 0.41 | 1.68 | 6.00 | 2.11 | 2.24 | |
| UBS Cash Plus | 0.39 | 1.24 | 4.54 | 1.98 | 1.79 | |
| Vanguard Cash Reserve | 0.40 | 1.12 | 4.08 | 1.81 | 1.41 | |
| Vanguard Cash Plus | 0.44 | 1.46 | 4.23 | 1.70 | 1.59 | |
| Bloomberg AusBond Bank 0+Y TR AUD | 0.37 | 1.09 | 4.00 | 1.83 | 1.44 |
*End of January 2024. Return in AUD after fees.