The targeted asset allocation to Property for the four Cbus investment options that have exposure to this asset class is shown in the table below.
Target Portfolio Asset Allocation from 3 July 2014
|Conservative Growth (Income stream only)||
Growth (Cbus MySuper)
What are property investments?
The major types of property investments include office, retail, industrial and residential.
You can invest directly in property by buying an existing building, or by developing a building. You can also invest indirectly in property by buying shares in a listed or unlisted property trust.
Cbus invests in property directly (through our wholly owned company Cbus Property) and indirectly in unlisted property trusts.
How property investments make a return
Property investments make a return from rental income and from an increase/decrease in capital value.
Risk and return characteristics
Property investments are generally moderate to high risk and moderate to high return.
Property that is already built and tenanted for a number of years is relatively low risk as it is has stable, relatively certain income.
Development property is at the higher end of the risk spectrum, as it may not be fully leased or committed in advance and its final sale price is uncertain.
Key risks that affect the investment value for property investments include:
- changes in rental demand, which can impact rental income and capital value
- liquidity risk, as properties can take time to sell and so cash may not be readily available
- interest rate risk - changes in interest rates can affect the overall profit for property developers or owners as their loans become more/less expensive.
Investing back into your industry
Cbus has a proud history of supporting the construction and building industry by investing in property and infrastructure developments across Australia.
Our investment in our own property developer, Cbus Property, sets us apart from other super funds, and shows our commitment to members.
Investing back into construction and building means that we're not only building your retirement savings, we're also building jobs in the construction and building industry.
Property holdings (PDF 326KB) as at 31 December 2014.