CASH FUNDS PERFORMANCE
The RBA’s overnight cash rate target remained unchanged during October at 0.10%. 3-month BBSW finished the month 5bps higher at 0.07% while 6-month BBSW finished 15bps higher at 0.20%. Expectations moved to reflect a significantly steeper path for the actual cash rate over the next fifteen months in comparison to its path at the end of September. At the end of the month, contracts implied the actual cash rate would gradually rise from the current rate of 0.03% to 1.30% by January 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 October, the Adelaide Bank Cash Management Trust remained the top-performing cash fund. The Adelaide Bank trust returned 0.11% on an annual basis Perpetual Cash Management Trust was next with a return of 0.04%.
| AUSTRALIAN CASH FUNDS | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|
| Adelaide Cash Management Trust | 0.01 | 0.03 | 0.11 | 0.25 | 0.44 |
| BT Premium Cash | 0.00 | 0.01 | 0.03 | 0.64 | 1.04 |
| IOOF Cash Management Trust | -0.01 | -0.01 | 0.01 | 0.85 | 1.29 |
| Perpetual Cash Management | 0.00 | 0.02 | 0.04 | 0.48 | 0.65 |
| Sandhurst Cash Common Fund | 0.00 | 0.00 | 0.03 | 0.27 | 0.47 |
| UBS Cash | -0.02 | -0.01 | -0.01 | 0.69 | 1.11 |
The 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 October. 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
The Smarter Money’s Active Cash Fund took over from Antares Income Fund as the highest-returning enhanced cash fund in the October survey. It produced a return of 0.14% for the month while the Realm Short Term Income Fund was next with a return of 0.10%. The Prime Value Enhanced Income Fund returned 0.00%, making it the third-highest performing enhanced cash fund for the month.
Only the returns of Smarter Money’s and Realm’s funds outperformed the almost-zero return produced by the Bloomberg AusBond Bank Bill index over October. However, all three funds’ returns exceeded the -0.10% return produced by the AusBond FRN index.
In terms of performance over the twelve months to the end of October, Prime Value’s Enhanced Income Fund retained its title as the highest performing fund by producing a 12-month return of 2.63%. The Realm Short Term Income Fund returned 2.34%, thus retaining its position as the second-highest returning fund in the sector. The Perpetual High Grade Treasury Fund also remained in third position in the rankings with return of 1.48%.
The Bloomberg AusBond Bank Bill and FRN indices returned 0.03% and 0.52% respectively over the 12-month period to the end of October. 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 | -0.02 | -0.01 | 0.11 | 0.90 | 1.35 | |
| Antares Income Fund | ANT01 | -0.24 | -0.14 | 1.24 | 1.59 | 1.99 |
| Australian Ethical Cash Trust | -0.10 | -0.08 | 0.11 | 0.88 | 1.13 | |
| BT Enhanced Cash | -0.08 | -0.07 | 0.32 | 1.08 | 1.53 | |
| BT Wholesale Enhanced Cash | -0.06 | -0.01 | 0.70 | 1.58 | 2.05 | |
| Dimensional Short Term Fixed Interest | -0.31 | -0.37 | -0.27 | 0.90 | 1.25 | |
| Fiducian Capital Safe | -0.05 | -0.04 | 0.04 | 0.70 | 1.12 | |
| IOOF MultiMix Cash Enhanced Trust | -0.15 | -0.15 | 0.29 | 1.25 | 1.66 | |
| Legg Mason Western Asset Cash Plus A | -0.11 | -0.07 | 0.36 | 1.14 | 1.61 | |
| MIF | -0.21 | -0.18 | 1.25 | 1.79 | 2.25 | |
| MLC Wholesale Horizon 1 Bond Portfolio | -0.42 | -0.44 | 0.41 | 1.26 | 1.53 | |
| Henderson Cash Enhanced Trust | -0.29 | -0.25 | 0.22 | 1.48 | 1.87 | |
| Perpetual High Grade Treasury | -0.06 | 0.00 | 1.48 | 2.14 | 2.47 | |
| Prime Value Enhanced Income Fund | 0.00 | -0.03 | 2.63 | 1.91 | 2.57 | |
| Realm Short Term Income Fund | RLM02 | 0.10 | 0.41 | 2.34 | 2.60 | n/a |
| Sandhurst Strategic Income A | -0.16 | -0.14 | 0.94 | 1.35 | 1.71 | |
| Smarter Money Active Cash Fund | 0.14 | -0.04 | 0.77 | 1.70 | 2.03 | |
| UBS Cash Plus | -0.08 | -0.06 | 0.10 | 1.14 | 1.59 | |
| Vanguard Cash Reserve | -0.02 | -0.05 | -0.12 | 0.65 | 1.10 | |
| Vanguard Cash Plus | -0.24 | -0.25 | -0.16 | 1.04 | 1.42 | |
| Bloomberg AusBond Bank 0+Y TR AUD | 0.00 | 0.00 | 0.03 | 0.73 | 1.17 |
*End of October 2021. Return in AUD after fees.