CASH FUNDS PERFORMANCE
The RBA’s overnight cash rate target remained unchanged at 3.60% in April. 3-month BBSW finished the month 4bps lower at 3.68% while 6-month BBSW gained 7bps to 3.86%. Expectations in the cash futures market moved to reflect a higher likelihood of another rate increase in the third quarter of 2023 while lowering the likelihood of a rate cut in 2024. At the end of the month, contracts implied the actual cash rate would fall from 3.57% at the end of April to an average of 3.42% in April 2024.
The benchmark Bloomberg AusBond Bank Bill index returned 0.30% over the month and 2.37% over the 12 months to the end of April.
| AUSTRALIAN CASH FUNDS | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|
| Adelaide Cash Management Trust | 0.14 | 0.48 | 0.93 | 0.37 | 0.41 |
| BT Premium Cash | 0.29 | 0.85 | 2.29 | 0.80 | 1.01 |
| IOOF Cash Management Trust | 0.30 | 0.85 | 2.42 | 0.88 | 1.22 |
| Sandhurst Cash Common Fund | 0.13 | 0.42 | 0.80 | 0.29 | 0.42 |
| UBS Cash | 0.62 | 1.19 | 2.82 | 0.93 | 1.17 |
ENHANCED CASH FUNDS PERFORMANCE
Prime Value Enhanced Income Fund produced a return of 0.68% in April, thus making it the month’s highest-returning enhanced cash fund in the survey. The Smarter Money Active Cash Fund produced the next-highest return, 0.54%, and the Perpetual High Grade Treasury Fund ranked third with a return of 0.49%.
The returns of all three funds outperformed the 0.30% return produced by the Bloomberg AusBond Bank Bill Index in April. All three funds also produced returns in excess of the 0.46% returned by the AusBond FRN Index.
In terms of performance over the twelve months to the end of April, the Mutual Income Fund took over from the Realm Short Term Income Fund as the highest performing fund by producing a return of 3.43% for the period. Realm’s Short Term Income Fund was the next with a return of 3.25% while the Perpetual High Grade Treasury Fund was not far behind with a return of 3.22%.
The Bloomberg AusBond Bank Bill and FRN indices returned 2.37% and 3.23% respectively over the 12-month period to the end of April. The above-mentioned funds all outperformed the Bank Bill Index but only the Mutual and Realm funds outperformed the FRN Index.
| AUSTRALIAN ENHANCED CASH FUNDS | ASX mFund | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|---|
| AMP Capital Managed Treasury | 0.33 | 0.85 | 2.53 | 0.96 | 1.23 | |
| Antares Income Fund | ANT01 | 0.48 | 1.22 | 2.80 | 1.70 | 1.60 |
| Australian Ethical Cash Trust | 0.33 | 0.95 | 2.53 | 0.93 | 1.14 | |
| BT Wholesale Enhanced Cash | 0.38 | 1.05 | 2.80 | 1.53 | 1.69 | |
| Dimensional Short Term Fixed Interest | 0.26 | 1.55 | 2.62 | 0.70 | 1.13 | |
| Fiducian Capital Safe | 0.31 | 0.87 | 2.40 | 0.83 | 1.03 | |
| IOOF MultiMix Cash Enhanced Trust | 0.39 | 0.99 | 2.55 | 1.21 | 1.38 | |
| Legg Mason Western Asset Conservative Income Fund | 0.37 | 1.07 | 2.95 | 1.21 | 1.38 | |
| Mutual Income Fund | 0.49 | 1.44 | 3.43 | 2.15 | 2.00 | |
| MLC Wholesale Horizon 1 Bond Portfolio | 0.44 | 0.64 | 1.31 | 0.73 | 0.81 | |
| Henderson Cash Enhanced Trust | 0.40 | 1.00 | 2.65 | 1.42 | 1.51 | |
| Perpetual High Grade Treasury | 0.49 | 1.19 | 3.22 | 1.99 | 2.06 | |
| Prime Value Enhanced Income Fund | 0.68 | 1.11 | 2.10 | 1.82 | 1.64 | |
| Realm Short Term Income Fund | RLM02 | 0.44 | 1.33 | 3.25 | 2.32 | 2.46 |
| Sandhurst Strategic Income A | 0.43 | 0.95 | 2.20 | 1.41 | 1.38 | |
| Smarter Money Active Cash Fund | 0.54 | 1.11 | 2.18 | 1.45 | 1.55 | |
| UBS Cash Plus | 0.36 | 0.98 | 2.73 | 1.13 | 1.41 | |
| Vanguard Cash Reserve | 0.29 | 0.82 | 2.40 | 0.75 | 1.05 | |
| Vanguard Cash Plus | 0.26 | 0.91 | 2.64 | 0.75 | 1.25 | |
| Bloomberg AusBond Bank 0+Y TR AUD | 0.30 | 0.83 | 2.37 | 0.81 | 1.11 |
*End of April 2023. Return in AUD after fees.