CASH FUNDS PERFORMANCE
The RBA’s overnight cash rate target was raised by 25bps in December to 3.10%. 3-month BBSW finished the month 17bps higher at 3.26% while 6-month BBSW gained 11bps to 3.77%. Expectations in the cash futures market moved to reflect a steeper path for the actual cash rate through 2023. At the end of the month, contracts implied the actual cash rate would rise from 3.06% at the end of December 2022 to 4.015% in December 2023.
The benchmark Bloomberg AusBond Bank Bill index returned 0.25% over the month and 1.25% over the 12 months to the end of December.
CASH FUNDS
| AUSTRALIAN CASH FUNDS | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|
| Adelaide Cash Management Trust | 0.26 | 0.28 | 0.35 | 0.18 | 0.34 |
| BT Premium Cash | 0.26 | 0.70 | 1.16 | 0.49 | 0.89 |
| IOOF Cash Management Trust | 0.35 | 0.61 | 0.75 | 0.45 | 1.02 |
| Sandhurst Cash Common Fund | 0.25 | 0.25 | 0.24 | 0.12 | 0.35 |
| UBS Cash | 0.53 | 0.92 | 1.19 | 0.54 | 0.99 |
ENHANCED CASH FUNDS PERFORMANCE
The Smarter Money Active Cash Fund produced a return of 1.31% in December, thus making it the month’s highest-returning enhanced cash fund in the survey. Mutual’s Income Fund produced the next-highest return, 0.94%, and the Perpetual High Grade Treasury Fund was ranked third with a return of 0.93%.
The returns of all three funds easily outperformed the 0.25% return produced by the Bloomberg AusBond Bank Bill Index in December. All three funds also produced returns well in excess of the 0.34% returned by the AusBond FRN Index.
In terms of performance over the twelve months to the end of December, AMP’s Capital Managed Treasury Fund and Realm’s Short Term Income Fund shared the titles as the highest performing fund by producing a returns of 1.16% for the period. Vanguard’s Cash Reserve Fund produced a return of 1.11% to rank third.
The Bloomberg AusBond Bank Bill and FRN indices returned 1.25% and 1.28% respectively over the 12-month period to the end of December. None of the above-mentioned funds met or exceeded both benchmarks.
ENHANCED CASH FUNDS
| AUSTRALIAN ENHANCED CASH FUNDS | ASX mFund | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|---|
| AMP Capital Managed Treasury | 0.55 | 1.02 | 1.16 | 0.69 | 1.15 | |
| Antares Income Fund | ANT01 | 0.80 | 1.14 | 0.42 | 0.88 | 1.40 |
| Australian Ethical Cash Trust | 0.56 | 0.90 | 0.84 | 0.56 | 0.95 | |
| BT Wholesale Enhanced Cash | 0.61 | 0.99 | 1.06 | 1.12 | 1.58 | |
| Dimensional Short Term Fixed Interest | 0.59 | 0.62 | -0.40 | 0.03 | 0.78 | |
| Fiducian Capital Safe | 0.53 | 0.92 | 0.95 | 0.48 | 0.92 | |
| IOOF MultiMix Cash Enhanced Trust | 0.60 | 0.86 | 0.51 | 0.77 | 1.23 | |
| Legg Mason Western Asset Conservative Income Fund | 0.64 | 1.07 | 0.78 | 0.70 | 1.21 | |
| Mutual Income Fund | 0.94 | 1.24 | 0.66 | 1.14 | 1.77 | |
| MLC Wholesale Horizon 1 Bond Portfolio | 0.91 | 0.18 | -1.99 | -0.35 | 0.55 | |
| Henderson Cash Enhanced Trust | 0.87 | 1.05 | 0.36 | 0.91 | 1.37 | |
| Perpetual High Grade Treasury | 0.93 | 1.21 | 0.85 | 1.32 | 1.89 | |
| Prime Value Enhanced Income Fund | 0.51 | 1.07 | -0.58 | 0.20 | 1.46 | |
| Realm Short Term Income Fund | RLM02 | 0.48 | 0.88 | 1.16 | 1.93 | n/a |
| Sandhurst Strategic Income A | 0.61 | 0.92 | 0.51 | 0.74 | 1.25 | |
| Smarter Money Active Cash Fund | 1.31 | 0.86 | 0.23 | 0.77 | 1.35 | |
| UBS Cash Plus | 0.68 | 0.95 | 1.03 | 0.68 | 1.26 | |
| Vanguard Cash Reserve | 0.51 | 0.89 | 1.11 | 0.48 | 0.95 | |
| Vanguard Cash Plus | 0.64 | 0.95 | 0.53 | 0.47 | 1.09 | |
| Bloomberg AusBond Bank 0+Y TR AUD | 0.25 | 0.74 | 1.25 | 0.55 | 1.01 |
*End of December 2022. Return in AUD after fees.