CASH FUNDS PERFORMANCE
The RBA’s overnight cash rate target remained unchanged during December at 0.10%. 3-month BBSW finished the month 2bps higher at 0.07% while 6-month BBSW finished 7bps higher at 0.21%. Expectations moved to reflect a slightly steeper path for the actual cash rate over 2022 but a somewhat flatter path into the first quarter of 2023 in comparison to its path at the end of November. At the end of the month, contracts implied the actual cash rate would gradually rise from the current rate of 0.04% to 0.915% by February 2023.
One month returns for cash funds have become so low a comparison of them has become somewhat redundant. As such, no ranking of them will take place. Over the twelve months to the end of December, the Adelaide Bank Cash Management Trust remained the top-performing cash fund. The Adelaide Bank trust returned 0.13% on an annual basis while Perpetual Cash Management Trust was next with a return of 0.05%.
| AUSTRALIAN CASH FUNDS | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|
| Adelaide Cash Management Trust | 0.01 | 0.03 | 0.13 | 0.22 | 0.41 |
| BT Premium Cash | 0.00 | 0.03 | 0.02 | 0.54 | 0.98 |
| IOOF Cash Management Trust | 0.00 | -0.01 | -0.01 | 0.73 | 1.23 |
| Perpetual Cash Management | 0.02 | 0.02 | 0.05 | 0.41 | 0.61 |
| Sandhurst Cash Common Fund | 0.00 | 0.00 | 0.03 | 0.22 | 0.45 |
| UBS Cash | 0.00 | 0.00 | 0.01 | 0.60 | 1.06 |
The benchmarThe benchmark Bloomberg AusBond Bank Bill index returned less than 0.01% over the month and 0.03% over the 12 months to the end of December. The Adelaide Bank fund outperformed this benchmark over a 1-year time period but underperformed over periods of 3 years and 5 years.
ENHANCED CASH FUNDS PERFORMANCE
Prime Value’s Enhanced Income Fund took over as the highest-returning enhanced cash fund in the December survey. It produced returns of 0.30% for the month while Smarter Money Active Cash Fund was next with a return of 0.19%. The Mutual MIF (Class C units) returned 0.13%, making it the third-highest performing enhanced cash fund for the month.
The returns of all three of the above funds outperformed the almost-zero return produced by the Bloomberg AusBond Bank Bill index over December. All three funds’ returns also easily exceeded the 0.04% return produced by the AusBond FRN index.
In terms of performance over the twelve months to the end of December, Prime Value’s Enhanced Income Fund retained its title as the highest performing fund by producing a 12-month return of 2.35%. The Realm Short Term Income Fund returned 1.98%, also retaining its position as the second-highest returning fund in the sector. The Perpetual High Grade Treasury Fund remained in third position in the rankings with return of 0.97%.
The Bloomberg AusBond Bank Bill and FRN indices returned 0.03% and 0.32% respectively over the 12-month period to the end of December. All three funds’ returns easily outperformed both indices for this period.
| AUSTRALIAN ENHANCED CASH FUNDS | ASX mFund | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|---|
| AMP Capital Managed Treasury | -0.01 | -0.03 | 0.04 | 0.80 | 1.27 | |
| Antares Income Fund | ANT01 | 0.01 | -0.37 | 0.47 | 1.49 | 1.89 |
| Australian Ethical Cash Trust | 0.00 | -0.06 | 0.08 | 0.82 | 1.09 | |
| BT Enhanced Cash | 0.03 | -0.09 | 0.08 | 1.02 | 1.46 | |
| BT Wholesale Enhanced Cash | 0.05 | -0.04 | 0.42 | 1.50 | 1.97 | |
| Dimensional Short Term Fixed Interest | 0.01 | -0.18 | -0.17 | 0.78 | 1.22 | |
| Fiducian Capital Safe | -0.01 | -0.05 | 0.01 | 0.63 | 1.06 | |
| IOOF MultiMix Cash Enhanced Trust | 0.05 | -0.10 | 0.08 | 1.20 | 1.62 | |
| Legg Mason Western Asset Cash Plus A | -0.04 | -0.13 | 0.20 | 1.05 | 1.51 | |
| MIF | 0.13 | -0.15 | 0.87 | 1.79 | 2.17 | |
| MLC Wholesale Horizon 1 Bond Portfolio | 0.08 | -0.44 | -0.20 | 1.25 | 1.49 | |
| Henderson Cash Enhanced Trust | 0.04 | -0.13 | 0.06 | 1.48 | 1.84 | |
| Perpetual High Grade Treasury | 0.04 | -0.11 | 0.97 | 2.04 | 2.37 | |
| Prime Value Enhanced Income Fund | 0.30 | 0.23 | 2.35 | 1.85 | 2.39 | |
| Realm Short Term Income Fund | RLM02 | 0.12 | 0.24 | 1.98 | 2.51 | n/a |
| Sandhurst Strategic Income A | -0.05 | -0.21 | 0.60 | 1.25 | 1.61 | |
| Smarter Money Active Cash Fund | 0.19 | -0.02 | 0.14 | 1.68 | 1.90 | |
| UBS Cash Plus | 0.04 | -0.07 | -0.01 | 1.06 | 1.52 | |
| Vanguard Cash Reserve | -0.01 | -0.03 | -0.11 | 0.55 | 1.04 | |
| Vanguard Cash Plus | -0.01 | -0.12 | -0.09 | 0.98 | 1.39 | |
| Bloomberg AusBond Bank 0+Y TR AUD | 0.00 | 0.01 | 0.03 | 0.63 | 1.11 |
*End of December 2021. Return in AUD after fees.