Correct me if I'm wrong, but if you use a share index as a benchmark, performance fees are still payable if a funds NTA goes down, but by less than it's benchmark index.
Given the cash rate 'generally' stays positive, this would mean using cash as the benchmark would mean no performance fee is payable if the NTA of the fund goes down.
If my understanding is correct (Occam...) then there may be advantages in a cash rate benchmark in choppy or downward markets.
