Asset allocation framework
Our focus is on delivering strong, risk adjusted returns to our members over the longer term.
The Cbus Investment Team in partnership with the Fund's external investment adviser, Frontier Advisors, acts as adviser to the Cbus Board of Trustees and Investment Committee, assisting to develop and implement investment strategies and manage the day to day investment processes.
Each Cbus investment option invests in a range of different asset types (except the Cash option which invests only in cash investments).
The asset allocation for each Cbus investment option is structured in a way that we believe has the greatest likelihood of achieving the option’s return (and risk) objective.
We determine target portfolios for each investment option, taking into account the Strategic Asset Allocation (SAA) and the actual and prospective investment environment over the shorter term. In setting the target portfolios we seek to enhance performance over time compared to the Strategic Asset Allocation. The target portfolios are set within the minimum and maximum ranges for each asset class and are reviewed daily.
This SAA is viewed over the medium to long term (10 years) and is reviewed annually.
We also have targets within the investment strategy that are based on our view of the medium-term investment environment (5 years) which are reviewed at least quarterly.
Cbus’ investment decisions are made in the context of the medium to long term timeframe (over periods of five years and more). This is because members’ super builds up over a long time, so how Cbus performs over this period can make a real difference to retirement income.