CASH FUNDS PERFORMANCE
The RBA’s overnight cash rate target remained unchanged at 3.10% in January. 3-month BBSW finished the month 11bps higher at 3.37% while 6-month BBSW shed 5bps to 3.72%. Expectations in the cash futures market moved to reflect a steeper path for the actual cash rate through the first half of 2023 but a flatter path over the subsequent twelve months. At the end of the month, contracts implied the actual cash rate would rise from 3.06% at the end of January to 3.67% in January 2024.
The benchmark Bloomberg AusBond Bank Bill index returned 0.27% over the month and 1.52% over the 12 months to the end of January.
CASH FUNDS
| AUSTRALIAN CASH FUNDS | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|
| Adelaide Cash Management Trust | 0.12 | 0.38 | 0.48 | 0.22 | 0.35 |
| BT Premium Cash | 0.28 | 0.78 | 1.44 | 0.56 | 0.92 |
| IOOF Cash Management Trust | 0.16 | 0.52 | 0.99 | 0.46 | 1.01 |
| Sandhurst Cash Common Fund | 0.12 | 0.37 | 0.38 | 0.16 | 0.36 |
| UBS Cash | 0.30 | 0.83 | 1.58 | 0.61 | 1.01 |
ENHANCED CASH FUNDS PERFORMANCE
The MLC Wholesale Horizon 1 Bond Portfolio Fund produced a return of 1.11% in January, thus making it the month’s highest-returning enhanced cash fund in the survey. Perpetual’s High Grade Treasury Fund produced the next-highest return, 0.52%, and the Mutual Income Fund was just behind it with a return of 0.51%.
The returns of all three funds easily outperformed the 0.27% return produced by the Bloomberg AusBond Bank Bill Index in January. All three funds also produced returns well in excess of the 0.42% returned by the AusBond FRN Index.
In terms of performance over the twelve months to the end of January, AMP’s Capital Managed Treasury Fund retained its title as the highest performing fund by producing a returns of 1.52% for the period. Vanguard’s Cash Reserve Fund had the next highest return of 1.51% while UBS Cash Plus Fund’s return of 1.49% ranked third.
The Bloomberg AusBond Bank Bill and FRN indices returned 1.52% and 1.69% respectively over the 12-month period to the end of January. None of the above-mentioned funds exceeded both benchmarks.
ENHANCED CASH FUNDS
| AUSTRALIAN ENHANCED CASH FUNDS | ASX mFund | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|---|
| AMP Capital Managed Treasury | 0.25 | 0.81 | 1.52 | 0.74 | 1.15 | |
| Antares Income Fund | ANT01 | 0.51 | 1.32 | 0.86 | 0.95 | 1.44 |
| Australian Ethical Cash Trust | 0.38 | 0.95 | 1.32 | 0.66 | 0.99 | |
| BT Wholesale Enhanced Cash | 0.37 | 0.98 | 1.48 | 1.15 | 1.57 | |
| Dimensional Short Term Fixed Interest | 0.41 | 1.00 | 0.11 | 0.10 | 0.84 | |
| Fiducian Capital Safe | 0.30 | 0.83 | 1.34 | 0.54 | 0.93 | |
| IOOF MultiMix Cash Enhanced Trust | 0.47 | 1.08 | 0.99 | 0.88 | 1.28 | |
| Legg Mason Western Asset Conservative Income Fund | 0.50 | 1.15 | 1.38 | 0.81 | 1.25 | |
| Mutual Income Fund | 0.51 | 1.45 | 1.09 | 1.18 | 1.80 | |
| MLC Wholesale Horizon 1 Bond Portfolio | 1.11 | 2.03 | -0.93 | -0.15 | 0.71 | |
| Henderson Cash Enhanced Trust | 0.44 | 1.31 | 0.80 | 0.99 | 1.40 | |
| Perpetual High Grade Treasury | 0.52 | 1.45 | 1.39 | 1.39 | 1.93 | |
| Prime Value Enhanced Income Fund | 0.45 | 1.30 | -0.18 | 0.19 | 1.49 | |
| Realm Short Term Income Fund | RLM02 | 0.49 | 1.32 | 1.49 | 2.01 | n/a |
| Sandhurst Strategic Income A | 0.36 | 0.97 | 0.95 | 0.80 | 1.26 | |
| Smarter Money Active Cash Fund | 0.49 | 1.80 | 0.86 | 0.83 | 1.38 | |
| UBS Cash Plus | 0.42 | 1.10 | 1.49 | 0.76 | 1.29 | |
| Vanguard Cash Reserve | 0.29 | 0.80 | 1.51 | 0.54 | 0.97 | |
| Vanguard Cash Plus | 0.43 | 1.08 | 1.06 | 0.57 | 1.14 | |
| Bloomberg AusBond Bank 0+Y TR AUD | 0.27 | 0.77 | 1.52 | 0.61 | 1.03 |
*End of January 2023. Return in AUD after fees.