Performance comes at a cost for CMTs
JB Were’s low cost structure has pushed its cash management trust (CMT) to the top of the performance tables in the CMT market.
According to recently released research by Lonsdale Securities, JB Were’s CMT returned 5.25 per cent in the last financial year. The $1.3 billion fund is also the top performer over the three years, recording 4.73 in the three years to June 30.
However, Lonsdale says there is only a slight variation in the overall markets due to the limited nature of investment options for CMT operators. For instance, the $5.6 billion Commonwealth Bank CMT was only three basis points behind JB Were for both the one and three year numbers. The Commonwealth is the second lowest fee-charging manager in the market and the only one who doesn’t pay advisers a trailing commission for recommending the fund to their clients.
Lonsdale warns that the higher performance comes at a cost in terms of the features offered by the products.
“The lower fees charged by these managers tends to be reflected in less product features,” the group says. “The Commonwealth and JB Were do not offer B Pay or internet banking for CMT investors and the CBA doers not offer a cheque book facility.”
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
