CASH FUNDS PERFORMANCE
The RBA’s overnight cash rate target was raised by 25bps in October to 2.60%. 3-month BBSW finished the month 5bps higher at 3.09% while 6-month BBSW gained 11bps to 3.66%. Expectations in the cash futures market moved to reflect a noticeably flatter path for the actual cash rate over the second half of 2022 and through 2023. However, at the end of the month, contracts still implied the actual cash rate would rise from 2.56% to 4.065% by October 2023.
CASH FUNDS
| AUSTRALIAN CASH FUNDS | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|
| Adelaide Cash Management Trust | 0.17 | 0.43 | 0.65 | n/a | n/a |
| BT Premium Cash | 0.21 | 0.50 | 0.66 | 0.36 | 0.84 |
| IOOF Cash Management Trust | 0.15 | 0.38 | 0.47 | 0.38 | 1.00 |
| Sandhurst Cash Common Fund | 0.14 | 0.35 | 0.64 | n/a | n/a |
| UBS Cash | 0.27 | 0.56 | 0.77 | 0.41 | 0.92 |
The benchmark Bloomberg AusBond Bank Bill index returned 0.24% over the month and 0.76% over the 12 months to the end of October.
ENHANCED CASH FUNDS PERFORMANCE
The Legg Mason Western Conservative Income Fund produced a return of 0.37% in October, thus making it the month’s highest-returning enhanced cash fund in the survey. AMP’s Capital Managed Treasury Fund and Vanguard’s Cash Plus Fund shared equal-second place with returns of 0.31%.
The returns of all three funds outperformed the 0.24% return produced by the Bloomberg AusBond Bank Bill Index in October. All three funds also produced returns in excess of the 0.16% returned by the AusBond FRN Index.
In terms of performance over the twelve months to the end of October, the AMP Capital Managed Treasury Fund took over from Realm’s Short Term Income Fund as the highest performing fund by producing a return of 0.70% for the period. The Vanguard Cash Reserve Fund again produced the next-highest performance for this period with a 12-month return of 0.69% while the Pendal Wholesale Enhanced Cash Fund AMP Capital Managed Treasury Fund produced a return of 0.51% to rank third.
The Bloomberg AusBond Bank Bill and FRN indices returned 0.76% and 0.53% respectively over the 12-month period to the end of October. 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 | 0.31 | 0.66 | 0.70 | 0.55 | 1.08 | |
| Antares Income Fund | ANT01 | 0.00 | 0.68 | -0.49 | 0.69 | 1.29 |
| Australian Ethical Cash Trust | 0.24 | 0.52 | 0.39 | 0.42 | 0.87 | |
| BT Wholesale Enhanced Cash | 0.20 | 0.67 | 0.51 | 1.00 | 1.52 | |
| Dimensional Short Term Fixed Interest | 0.27 | -0.15 | -0.89 | -0.14 | 0.69 | |
| Fiducian Capital Safe | 0.27 | 0.58 | 0.50 | 0.34 | 0.85 | |
| IOOF MultiMix Cash Enhanced Trust | 0.14 | 0.52 | -0.05 | 0.63 | 1.16 | |
| Legg Mason Western Asset Conservative Income Fund | 0.37 | 0.58 | 0.22 | 0.54 | 1.13 | |
| Mutual Income Fund | 0.03 | 0.98 | -0.27 | 0.91 | 1.66 | |
| MLC Wholesale Horizon 1 Bond Portfolio | -0.04 | -0.86 | -3.14 | -0.59 | 0.42 | |
| Henderson Cash Enhanced Trust | 0.11 | 0.48 | -0.36 | 0.70 | 1.26 | |
| Perpetual High Grade Treasury | 0.13 | 0.67 | -0.10 | 1.10 | 1.78 | |
| Prime Value Enhanced Income Fund | 0.22 | 0.87 | -1.19 | 0.07 | 1.38 | |
| Realm Short Term Income Fund | RLM02 | 0.05 | 0.62 | 0.47 | 1.77 | n/a |
| Sandhurst Strategic Income A | 0.13 | 0.61 | -0.06 | 0.59 | 1.19 | |
| Smarter Money Active Cash Fund | -0.59 | -0.15 | -1.39 | 0.40 | 1.15 | |
| UBS Cash Plus | 0.16 | 0.57 | 0.41 | 0.52 | 1.18 | |
| Vanguard Cash Reserve | 0.23 | 0.55 | 0.69 | 0.34 | 0.89 | |
| Vanguard Cash Plus | 0.31 | 0.36 | 0.07 | 0.31 | 1.01 | |
| Bloomberg AusBond Bank 0+Y TR AUD | 0.24 | 0.54 | 0.76 | 0.43 | 0.97 |
*End of October 2022. Return in AUD after fees.