Managed Funds

CASH FUNDS PERFORMANCE

The RBA’s overnight cash rate target was raised by 50bps in July to 1.35%. 3-month BBSW finished the month 31bps higher at 2.12% while 6-month BBSW gained 11bps to 2.78%. 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 the first half of 2023. At the end of the month, contracts implied the actual cash rate would rise from 1.31% to 3.115% by August 2023.

Over the twelve months to the end of July, the UBS Cash Fund took over the title of top-performing cash fund. The UBS fund returned 0.19% over this period while the BT Premium Cash Fund was next with a return of 0.18%.

AUSTRALIAN CASH FUNDS	1m (%)	3m (%)	1y (%)	3y (%)	5y (%)
Adelaide Cash Management Trust	0.01	0.03	0.13	0.12	0.33
BT Premium Cash	0.07	0.15	0.18	0.28	0.83
IOOF Cash Management Trust	0.00	0.04	0.00	0.34	1.00
Sandhurst Cash Common Fund	0.00	0.00	0.01	0.07	0.36
UBS Cash	0.15	0.21	0.19	0.30	0.89

The benchmark Bloomberg AusBond Bank Bill index returned 0.12% over the month and 0.22% over the 12 months to the end of July. None of the funds outperformed this benchmark over a 1-year time period.

ENHANCED CASH FUNDS PERFORMANCE

The MLC Wholesale Horizon 1 Bond Portfolio took the honours as the highest-returning enhanced cash fund in the July survey. The fund produced a return of 0.62% for the month while the Dimensional Short Term Fixed Interest Fund was next with a return of 0.39%. Vanguard’s Cash Plus Fund was not far behind with a return of 0.36%.

The returns of all three funds outperformed the 0.12% return produced by the Bloomberg AusBond Bank Bill index in July. All three funds also produced in excess of the 0.24% return produced by the AusBond FRN index.

In terms of performance over the twelve months to the end of July, the Realm Short Term Income Fund retained its title as the highest performing fund by producing a return of 0.25% for the period. The Vanguard Cash Reserve Fund again produced the next-highest performance for this period with a return of 0.09% while AMP Capital Managed Treasury Fund produced a return of 0.02% to rank third.

The Bloomberg AusBond Bank Bill and FRN indices returned 0.22% and -0.21% respectively over the 12-month period to the end of July. All three funds’ returns outperformed the FRN index for this period but only the Realm fund outperformed the Bank Bill index.

AUSTRALIAN ENHANCED CASH FUNDS	ASX mFund	1m (%)	3m (%)	1y (%)	3y (%)	5y (%)
AMP Capital Managed Treasury		0.13	0.19	0.02	0.41	1.03
Antares Income Fund	ANT01	-0.10	-0.43	-1.30	0.53	1.31
Australian Ethical Cash Trust		0.13	0.10	-0.21	0.30	0.85
BT Wholesale Enhanced Cash		0.05	0.07	-0.16	0.88	1.55
Dimensional Short Term Fixed Interest		0.39	0.21	-1.11	-0.01	0.81
Fiducian Capital Safe		0.11	0.10	-0.12	0.22	0.82
IOOF MultiMix Cash Enhanced Trust		0.09	-0.06	-0.71	0.51	1.18
Legg Mason Western Asset Conservative Income Fund		0.26	0.12	-0.43	0.45	1.13
Mutual Income Fund		-0.01	-0.47	-1.38	0.74	1.64
MLC Wholesale Horizon 1 Bond Portfolio		0.62	-0.48	-2.73	-0.23	0.71
Henderson Cash Enhanced Trust		0.20	-0.15	-1.07	0.59	1.29
Perpetual High Grade Treasury		0.12	-0.13	-0.77	1.01	1.80
Prime Value Enhanced Income Fund		0.30	-1.17	-2.07	0.10	1.41
Realm Short Term Income Fund	RLM02	-0.01	-0.06	0.25	1.72	n/a
Sandhurst Strategic Income A		-0.14	-0.34	-0.80	0.52	1.18
Smarter Money Active Cash Fund		0.22	-0.58	-1.28	0.48	1.31
UBS Cash Plus		0.07	0.05	-0.22	0.42	1.18
Vanguard Cash Reserve		0.12	0.21	0.09	0.24	0.86
Vanguard Cash Plus		0.36	0.28	-0.54	0.27	1.04
Bloomberg AusBond Bank 0+Y TR AUD		0.12	0.21	0.22	0.33	0.94

^{*End of July 2022. Return in AUD after fees.}