Investment FAQs

This section contains answers to some frequently asked questions regarding Cbus' investment returns. If this information does not answer your query, please refer to the Cbus Annual Report.

If you would like further information on the investment options available to you as a Cbus member, please click here.

Questions About Investment Returns

1. How is interest calculated?

The annual crediting rate is applied to your membership account and takes into consideration your opening balance, any contributions paid in during the year, less administration and insurance fees, and taxes.

2. Is my money safe?

Cbus is managed by United Super Pty Ltd, a Trustee Company that has been granted Approved Trustee status by the Australian Prudential Regulation Authority-the major regulatory body for superannuation in Australia.

There are sixteen directors on the board of United Super seven member and seven employer representatives; a Chairperson nominated by the ACTU and one independent director. All decisions of the Board require a 2/3-majority vote. The primary concern of the board is to ensure that member monies are protected and that all decisions made are in the best interests of Cbus members.

Below the board are a variety of committees who oversee particular operations of the fund for example: investment, compliance, and administration committees. Both member and employer representatives sit on these committees and all committees report on a regular basis to the Full Board of Cbus.

Cbus utilises the services of professional investment managers and advisers, solicitors, accountants and auditors to ensure the Fund operates smoothly and in the best interests of members. There is also a full-time team of specialists employed by Cbus overseeing the Fund's legal requirements, investments and administration.

Cbus diversifies its investment risk by using a number of domestic and international investment mangers that specialise in different asset classes. Cbus investment managers are chosen on the basis of their skills and ability to add value to members' retirement benefits.

3. How is my money invested?

Cbus offers you a choice of investment strategies and each strategy comes with different levels of growth prospects and risk.

Cbus invests money in Australian and international shares, property, infrastructure and bonds. Where possible, Cbus seeks to invest a proportion of its funds in building and construction projects, thus creating job opportunities for its members.

The actual asset allocation for each investment choice can be viewed in the Annual Report.

4. Who invests the money?

Cbus has an investment committee, which (after receiving advice from the Funds Investment Adviser, Frontier) recommends appropriate investments, investment managers and investment strategies to the Cbus Board of Trustees. These investments have to fall within the Boards approved strategy. Cbus uses a number of international and Australian investment managers who specialise in different areas. These can be seen in the Annual Report.

5. Who advises Cbus where to invest?

Frontier is the Investment Adviser to Cbus. Frontier provides strategic investment and manager advice to 16 wholesale clients with aggregate investments over $94.4 billion.

6. How can I minimise the risk of lower returns occurring again and should I change my investment strategy?

Superannuation is a long-term investment and importance should be placed on long-term performance. You need to consider your personal circumstances including the number of years to retirement and how much risk you are willing to accept. You may wish to seek financial advice. Cbus has investment choice options available that you can switch into, if you believe they suit your situation better.

7. How does member protection work?

Commonwealth Government legislation limits the fees and charges deducted from your fund if the account balance is less than $1000 and includes Superannuation Guarantee contributions; this simply protects smaller amounts from being eaten away by fees. If superannuation funds experience a bad investment period, then legislation allows the funds to charge a maximum of $10 per year in fees for members with less than $1,000 in their account.

8. If I am in the Super Shares (Coles Myer) option, do I have to declare Coles Myer Ltd dividends as personal income?

As the dividends form part of your superannuation fund income, you do not have to declare the dividends as personal income.

9. Why does it take so long to announce the crediting rates?

Cbus has over 30% of its investment in assets that need to be independently valued at 30 June each year. These assets include direct property and infrastructure (like airports and tollways). This takes time and the Cbus Investment advisers and Investment Committee then need to review these values to ensure they are incorporated into the Fund's overall performance and investment options. Cbus' crediting rates are normally finalised in August.