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Mutual Cash Fund rated "Recommended" by Lonsec

Updated: Oct 25, 2023

We are pleased to announce the Mutual Cash Fund (MCTDF) received a Recommended rating from Lonsec in its first review of the strategy. In its Product Review dated 25 September 2023, Lonsec describes the Mutual Cash Fund as a "low volatility fund that provides investors with security and minimal risk in generating regular income, with a focus on liquidity management”.


The Fund is managed by Mutual Limited and is an actively managed portfolio of deposits offered by the four major Australian banks only. The Fund prioritises capital security for investors and targets a net return of 0.5% pa above the Bloomberg AusBond Bank Bill Index over a rolling 12-month period. The Fund also targets greater income over the Benchmark after fees, on a quarterly basis.


Key features of the Mutual Cash Fund


Gross running yield of 4.66%

As at 30 September 2023, the Fund had a Gross Running Yield of 4.66%*


Diversified across the Big 4 only

The Fund is invested across numerous deposits offered by the Big 4 major Australian banks - ANZ, CBA, NAB and Westpac. Fund investors are not exposed to any singer borrower or investment term.


Daily liquidity

The key advantage of the Fund is that it provides investors with a term deposit-like return without the lock up. Daily unit pricing allows daily access to funds and there is no need to wait for deposit maturity to access funds.


Reliable track record

The Fund (established Sept 2011) is managed by Mutual Limited, an Australian-based fixed income fund manager.

The Fund has never had a negative daily return and has never been unable to fund redemptions. This record reflects its low risk profile.


A more responsive return profile

With a wide spread of deposits across a range of maturity dates, the Fund is designed to provide incremental changes to the Running Yield reflecting changes to the RBA rate. The helps investors avoid being left behind if the RBA increases rates while they may otherwise be locked in a long term deposit.


Platform availability

The Fund is listed on a range of platforms including: Asgard, BT Panorama, CFS FirstWrap, Expand, HUB24, Macquarie, MyNorth, Netwealth, Powerwrap, Praemium and Mason Stevens.


Find out more about the Mutual Cash Fund here: https://www.mutualltd.com.au/mutual-cash-fund


* The Gross Running Yield is the percentage of income earned by the Fund divided by the Market value of the Fund assets. Past performance is not a reliable indicator of future performance.


The rating issued September 2023 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2023 Lonsec. All rights reserved.

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