CASH FUNDS PERFORMANCE
The RBA’s overnight cash rate target was raised by 25bps to 4.10% in June. 3-month BBSW finished the month 37bps higher at 4.35% while 6-month BBSW gained 53bps to 4.70%. Expectations in the cash futures market moved to reflect a higher likelihood of another rate increase in the third or fourth quarters of 2023 while deferring the timing of a rate cut in 2024. At the end of the month, contracts implied the actual cash rate would rise from 4.07% at the end of June to an average of 4.26% in June 2024.
The benchmark Bloomberg AusBond Bank Bill index returned 0.30% over the month and 2.89% over the 12 months to the end of June.
| AUSTRALIAN CASH FUNDS | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|
| Adelaide Cash Management Trust | 0.20 | 0.55 | 1.31 | 0.51 | 0.47 |
| BT Premium Cash | 0.32 | 0.94 | 2.87 | 0.99 | 1.09 |
| IOOF Cash Management Trust | 0.19 | 0.77 | 2.81 | 1.01 | 1.24 |
| Sandhurst Cash Common Fund | 0.17 | 0.49 | 1.17 | 0.40 | 0.46 |
| UBS Cash | 0.28 | 0.86 | 3.00 | 1.01 | 1.15 |
ENHANCED CASH FUNDS PERFORMANCE
The Smarter Money Active Cash Fund produced a return of 0.64% in June, thus making it the month’s highest-returning enhanced cash fund in the survey. The Mutual Income Fund was next with return of 0.60% while the Perpetual High Grade Treasury Fund took third place after it produced a return of 0.59%.
The returns of all three funds outperformed the 0.30% return produced by the Bloomberg AusBond Bank Bill Index in June. All three also exceeded the 0.41% returned by the AusBond FRN Index.
In terms of performance over the twelve months to the end of June, the Mutual Income Fund retained its title as the highest performing fund by producing a return of 4.96% for the period. Perpetual’s High Grade Treasury Fund was the next with a return of 4.56% while Realm’s Short Term Income Fund was ranked third with a return of 4.31%.
The Bloomberg AusBond Bank Bill and FRN indices returned 2.89% and 4.03% respectively over the 12-month period to the end of June. The above-mentioned funds all outperformed the Bank Bill Index and the FRN Index over this period.
| AUSTRALIAN ENHANCED CASH FUNDS | ASX mFund | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|---|
| AMP Capital Managed Treasury | 0.34 | 1.00 | 3.15 | 1.13 | 1.28 | |
| Antares Income Fund | ANT01 | 0.10 | 1.06 | 3.73 | 1.67 | 1.65 |
| Australian Ethical Cash Trust | 0.27 | 0.88 | 3.12 | 1.06 | 1.21 | |
| BT Wholesale Enhanced Cash | 0.38 | 1.16 | 3.58 | 1.61 | 1.78 | |
| Dimensional Short Term Fixed Interest | 0.15 | 0.59 | 2.41 | 0.40 | 0.92 | |
| Fiducian Capital Safe | 0.31 | 0.91 | 3.03 | 0.99 | 1.10 | |
| IOOF MultiMix Cash Enhanced Trust | 0.41 | 1.16 | 3.49 | 1.28 | 1.48 | |
| Legg Mason Western Asset Conservative Income Fund | 0.34 | 1.07 | 3.81 | 1.31 | 1.46 | |
| Mutual Income Fund | 0.60 | 1.51 | 4.96 | 2.16 | 2.14 | |
| MLC Wholesale Horizon 1 Bond Portfolio | 0.43 | 1.03 | 3.03 | 0.49 | 0.89 | |
| Henderson Cash Enhanced Trust | 0.40 | 1.13 | 3.76 | 1.32 | 1.60 | |
| Perpetual High Grade Treasury | 0.59 | 1.54 | 4.56 | 2.05 | 2.20 | |
| Prime Value Enhanced Income Fund | 0.30 | 0.53 | 3.47 | 1.49 | 1.58 | |
| Realm Short Term Income Fund | RLM02 | 0.53 | 1.42 | 4.31 | 2.49 | 2.58 |
| Sandhurst Strategic Income A | 0.44 | 1.22 | 3.21 | 1.32 | 1.49 | |
| Smarter Money Active Cash Fund | 0.64 | 1.55 | 4.03 | 1.49 | 1.72 | |
| UBS Cash Plus | 0.28 | 0.97 | 3.37 | 1.22 | 1.46 | |
| Vanguard Cash Reserve | 0.30 | 0.92 | 2.95 | 0.95 | 1.12 | |
| Vanguard Cash Plus | 0.06 | 0.46 | 2.93 | 0.76 | 1.23 | |
| Bloomberg AusBond Bank 0+Y TR AUD | 0.30 | 0.90 | 2.89 | 1.01 | 1.17 |
*End of une 2023. Return in AUD after fees.