CASH FUNDS PERFORMANCE
The RBA’s overnight cash rate target was raised by another 25bps to 3.60% in March. 3-month BBSW finished the month 16bps higher at 3.72% while 6-month BBSW lost 14bps to 3.79%. Expectations in the cash futures market moved to reflect a flatter path for the actual cash rate through 2023 and at least one rate cut in the first half of 2024. At the end of the month, contracts implied the actual cash rate would fall from 3.57% at the end of March to an average of 3.34% in March 2024.
The benchmark Bloomberg AusBond Bank Bill index returned 0.28% over the month and 2.04% over the 12 months to the end of March.
CASH FUNDS
| AUSTRALIAN CASH FUNDS | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|
| Adelaide Cash Management Trust | 0.18 | 0.46 | 0.79 | 0.32 | 0.40 |
| BT Premium Cash | 0.30 | 0.84 | 2.00 | 0.71 | 0.98 |
| IOOF Cash Management Trust | 0.22 | 0.55 | 1.39 | 0.53 | 1.03 |
| Sandhurst Cash Common Fund | 0.16 | 0.42 | 0.68 | 0.25 | 0.40 |
| UBS Cash | 0.32 | 0.86 | 2.14 | 0.74 | 1.07 |
ENHANCED CASH FUNDS PERFORMANCE
Dimensional Short Term Fixed Interest Trust produced a return of 0.60% in March, thus making it the month’s highest-returning enhanced cash fund in the survey. The Vanguard Cash Plus Fund produced the next-highest return, 0.51%, and the Legg Mason Western Conservative Income Fund ranked third with a return of 0.41%.
The returns of all three funds easily outperformed the 0.28% return produced by the Bloomberg AusBond Bank Bill Index in March. All three funds also produced returns in excess of the 0.26% returned by the AusBond FRN Index.
In terms of performance over the twelve months to the end of March, Realm’s Short Term Income Fund retained its title as the highest performing fund by producing a return of 2.66% for the period. The Mutual Cash Fund was just behind it after it returned 2.65% while the Perpetual High Grade Treasury Fund’s return of 2.56% ranked third.
The Bloomberg AusBond Bank Bill and FRN indices returned 2.04% and 2.70% respectively over the 12-month period to the end of March. The above-mentioned funds all outperformed the Bank Bill Index but all three underperformed the FRN Index.
ENHANCED CASH FUNDS
| AUSTRALIAN ENHANCED CASH FUNDS | ASX mFund | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|---|
| AMP Capital Managed Treasury | 0.27 | 0.77 | 2.15 | 0.92 | 1.20 | |
| Antares Income Fund | ANT01 | 0.11 | 1.25 | 2.26 | 1.60 | 1.55 |
| Australian Ethical Cash Trust | 0.33 | 1.00 | 2.07 | 0.87 | 1.10 | |
| BT Wholesale Enhanced Cash | 0.24 | 1.04 | 2.34 | 1.50 | 1.65 | |
| Dimensional Short Term Fixed Interest | 1.33 | 1.71 | 1.96 | 0.73 | 1.11 | |
| Fiducian Capital Safe | 0.32 | 0.86 | 2.01 | 0.77 | 1.01 | |
| IOOF MultiMix Cash Enhanced Trust | 0.18 | 1.07 | 1.92 | 1.18 | 1.35 | |
| Legg Mason Western Asset Conservative Income Fund | 0.41 | 1.21 | 2.40 | 1.17 | 1.35 | |
| Mutual Income Fund | 0.25 | 1.46 | 2.65 | 2.23 | 1.94 | |
| MLC Wholesale Horizon 1 Bond Portfolio | 0.15 | 1.31 | 0.47 | 0.80 | 0.74 | |
| Henderson Cash Enhanced Trust | 0.15 | 1.04 | 1.83 | 1.57 | 1.48 | |
| Perpetual High Grade Treasury | 0.17 | 1.22 | 2.56 | 2.00 | 2.01 | |
| Prime Value Enhanced Income Fund | 0.00 | 0.88 | 1.25 | 0.94 | 1.54 | |
| Realm Short Term Income Fund | RLM02 | 0.31 | 1.38 | 2.66 | 2.23 | 2.42 |
| Sandhurst Strategic Income A | 0.13 | 0.88 | 1.89 | 1.29 | 1.33 | |
| Smarter Money Active Cash Fund | 0.01 | 1.05 | 1.36 | 1.79 | 1.49 | |
| UBS Cash Plus | 0.31 | 1.04 | 2.24 | 1.17 | 1.37 | |
| Vanguard Cash Reserve | 0.30 | 0.83 | 2.07 | 0.67 | 1.03 | |
| Vanguard Cash Plus | 0.51 | 1.08 | 2.04 | 0.75 | 1.23 | |
| Bloomberg AusBond Bank 0+Y TR AUD | 0.28 | 0.79 | 2.04 | 0.73 | 1.08 |
*End of March 2023. Return in AUD after fees.