Managed Funds

CASH FUNDS PERFORMANCE

The RBA’s overnight cash rate target remained unchanged during August at 0.10%. 3 month BBSW finished the month 1bp lower at 0.01% while 6-month BBSW finished 2bps lower at 0.03%. Expectations moved to reflect a slightly steeper path for the actual cash rate over the next fifteen months in comparison to its path at the end of July. At the end of the month, contracts implied the actual cash rate would gradually rise from the current rate of 0.03% to 0.19% by November 2022.

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 August, the Adelaide Bank Cash Management Trust remained the top-performing cash fund. The Adelaide Bank trust returned 0.10% on an annual basis while the IOOF Cash Management Trust was next with 0.06%.

AUSTRALIAN CASH FUNDS	1m (%)	3m (%)	1y (%)	3y (%)	5y (%)
Adelaide Cash Management Trust	0.01	0.03	0.10	0.28	0.47
BT Premium Cash	0.00	0.01	0.03	0.74	1.09
IOOF Cash Management Trust	0.00	0.00	0.06	0.97	1.37
Perpetual Cash Management	0.00	0.01	0.04	0.57	0.70
Sandhurst Cash Common Fund	0.00	0.01	0.03	0.32	0.50
UBS Cash	0.00	0.00	0.00	0.80	1.17

The benchmark Bloomberg AusBond Bank Bill index returned less than 0.01% over the month and 0.05% over the 12 months to the end of August. 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

Realm’s Short Term Income Fund took over as the highest-returning enhanced cash fund in the August survey. It produced a return of 0.19% for the month while Mutual’s MIF (Class C unit) and Perpetual High Grade Treasury Fund shared second position after they each produced returns of 0.06%.

The returns of all three funds easily outperformed the almost-zero return produced by the Bloomberg AusBond Bank Bill index over August. All three funds’ returns also exceeded the 0.05% return produced by the AusBond FRN index.

In terms of performance over the twelve months to the end of August, Realm’s Short Term Income Fund also took over as the highest performing fund by producing a 12-month return of 2.53%. Perpetual High Grade Treasury Fund returned 1.94%, making it the second-highest returning fund in the sector while Mutual’s MIF (Class C units) posted a return of 1.86%, thus retaining its position as the fund with the third-highest 12-month return.

The Bloomberg AusBond Bank Bill and FRN indices returned 0.05% and 1.02% respectively over the 12-month period to the end of August. 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		0.00	0.05	0.21	1.02	1.40
Antares Income Fund	ANT01	-0.06	-0.02	1.55	1.76	2.10
Australian Ethical Cash Trust		0.02	0.07	0.31	1.01	1.20
BT Enhanced Cash		0.03	0.15	0.61	1.21	1.64
BT Wholesale Enhanced Cash		0.05	0.20	1.03	1.73	2.17
Dimensional Short Term Fixed Interest		0.04	0.06	0.24	1.14	1.40
Fiducian Capital Safe		0.00	-0.01	0.16	0.81	1.20
IOOF MultiMix Cash Enhanced Trust		0.02	0.14	0.71	1.44	1.78
Legg Mason Western Asset Cash Plus A		0.01	0.00	0.69	1.29	1.75
MIF		0.06	0.34	1.86	2.01	2.49
MLC Wholesale Horizon 1 Bond Portfolio		-0.04	0.02	1.09	1.46	1.68
Henderson Cash Enhanced Trust		0.01	0.11	0.88	1.71	2.02
Perpetual High Grade Treasury		0.06	0.27	1.94	2.32	2.60
Prime Value Enhanced Income Fund		-0.12	0.28	1.65	1.65	2.52
Realm Short Term Income Fund	RLM02	0.19	0.45	2.53	2.69	n/a
Sandhurst Strategic Income A		0.03	0.01	1.34	1.52	1.84
Smarter Money Active Cash Fund		-0.32	-0.60	0.91	1.74	2.11
UBS Cash Plus		0.05	0.12	0.40	1.31	1.68
Vanguard Cash Reserve		-0.01	-0.03	-0.07	0.78	1.16
Vanguard Cash Plus		0.03	0.05	0.21	1.26	1.53
Bloomberg AusBond Bank 0+Y TR AUD		0.00	0.01	0.04	0.84	1.22

^{*End of August 2021. Return in AUD after fees.}