The objectives of the Trust are to provide investors with a stable investment and regular income by investing in a range of a cash deposits and short-term money market securities. The Trust aims to provide competitive returns for investors with a total investment return (before fees) that exceeds or is at least equal to the UBSA Bank Bill Index. The Trust predominantly invests in high quality short-term money market and bank based securities, to achieve a very stable income stream and attempts to forecast the short-term direction of the interest rate cycle.
Over the quarter, money market yields continued to rise as central banks increased interest rates to fight inflation that has so far remained stubbornly elevated.
Allocations to term deposits, NCDs and cash notice accounts have added value to the CMT.
A longer weighted average maturity versus the benchmark subtracted.
What is IOOF Cash Management Trust IOOF Cash Management Trust is an Managed Funds investment product that is benchmarked against RBA Cash Rate Target Index and sits inside the Cash - Australian Cash Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The IOOF Cash Management Trust has Assets Under Management of 2.61 BN with a management fee of 0.3%, a performance fee of 0.00% and a buy/sell spread fee of 0%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the IOOF Cash Management Trust has returned 0.38% in the last month. The previous three years have returned 2.55% annualised and 0.54% each year since inception, which is when the IOOF Cash Management Trust first started.
How is risk measured in this investment product?
There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since IOOF Cash Management Trust first started, the Sharpe ratio is NA with an annualised volatility of 0.54%. The maximum drawdown of the investment product in the last 12 months is 0% and -0.03% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product?
Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The IOOF Cash Management Trust has a 12-month excess return when compared to the Cash - Australian Cash Index of -0.46% and -0.93% since inception.
Does the investment product produce Alpha over its Peers?
Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. IOOF Cash Management Trust has produced Alpha over the Cash - Australian Cash Index of NA% in the last 12 months and NA% since inception.
What are similar investment products?
For a full list of investment products in the Cash - Australian Cash Index category, you can click here for the Peer Investment Report.
What level of diversification will IOOF Cash Management Trust provide?
IOOF Cash Management Trust has a correlation coefficient of 0.18 and a beta of 2.68 when compared to the Cash - Australian Cash Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers?
For a full quantitative report on IOOF Cash Management Trust and its peer investments, you can click here for the Peer Investment Report.
How do I compare the IOOF Cash Management Trust with the RBA Cash Rate Target Index?
For a full quantitative report on IOOF Cash Management Trust compared to the RBA Cash Rate Target Index, you can click here.
Can I sort and compare the IOOF Cash Management Trust to do my own analysis?
To sort and compare the IOOF Cash Management Trust financial metrics, please refer to the table above.
Has the IOOF Cash Management Trust been independently verified by SMSF Mate?
This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in IOOF Cash Management Trust?
How do I get in contact with the IOOF Cash Management Trust?
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the IOOF Cash Management Trust. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - March 31, 2023 Over the quarter, money market yields continued to rise as central banks increased interest rates to fight inflation that has so far remained stubbornly elevated.
Allocations to term deposits, NCDs and cash notice accounts have added value to the CMT.
A longer weighted average maturity versus the benchmark subtracted value.
Performance Commentary - December 31, 2022 Over the quarter, money market yields continued to rise as central banks aggressively increased interest rates to fight inflation that has so far remained stubbornly elevated.
Allocations to term deposits, NCDs and cash notice accounts have added value to the CMT.
A longer weighted average maturity versus the benchmark subtracted value.
Performance Commentary - September 30, 2022 Over the quarter, money market yields continued to rise as central banks aggressively increased interest rates to fight inflation that has so far remained stubbornly elevated.
Allocations to term deposits, NCDs and cash notice accounts have added value to the CMT.
A longer weighted average maturity versus the benchmark subtracted value.
Performance Commentary - June 30, 2022 Over the quarter, money market yields continued to rise as central banks aggressively increased interest rates to deal with higher than expected inflation.
Allocations to term deposits, NCDs and cash notice accounts have added value to the CMT.
A longer weighted average maturity versus the benchmark subtracted value.
Performance Commentary - March 31, 2022 Over the quarter, money market yields rose as the market began to digest interest rate increases from Global Central Banks in response to elevated inflation prints. Market pricing is looking for Australian cash rates to hit 2.40% by the end of 2022, which is a far cry from the 0.1% cash rate and the 0.01% bank bill rates seen throughout 2021. Allocations to term deposits, NCDs and cash notice accounts have added value to the CMT. No negative detractors.
Performance Commentary - June 30, 2021 The trust outperformed its benchmark (Bank Bill Index) in the June quarter.
Money market yields are continuing to remain at supressed levels as the RBA and the Federal Government are doing all they can to stimulate an economy that is still being ravaged by COVID 19 and lockdowns. Despite this, the CMT is earning a running yield in excess of its benchmark.
Allocations to term deposits, NCDs and cash notice accounts have added value to the CMT. No negative detractors
Performance Commentary - September 30, 2020 The trust continued its outperformance of the Bank Bill Index. Money market yields dropped during the quarter reflecting the expectations for further easing in cash rates by the Reserve Bank. Allocations to Term Deposits, NCDs and cash notice accounts have contributed to the performance over the quarter. There were no significant detractors from performance.
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