A strong year of investment returns
The good news for Cbus members is the Growth (Cbus MySuper) option has delivered a 10.95% return1 over the financial year to 30 June 2018. This compares to the SR50 Balanced median return of 9.22%2 over the year for June 2018, as reported on 18 July 2018.
The Fully Retired Conservative Growth option has delivered a 9.24% return1 for its members over the year.
While global share markets have been a strong driver of returns over the past financial year, it has not been without a few bumps along the way.
Some of the global factors impacting returns over the 2017/18 financial year included:
- Rising US interest rates;
- International elections; and
- The threat of a global trade war.
Unlisted Infrastructure and Property have continued to power on, with a significant return from Cbus Property contributing strongly to overall returns.
Low bond yields have driven modest returns from fixed interest investments. With the Australian official cash rate at 1.5% at 30 June 2018, cash returns remain low.
We continue to monitor global economic conditions and adjust the portfolio accordingly.
1Past performance is not a reliable indicator of future performance. Based on the crediting rate, which is the return minus investment costs and taxes, the Trustee Operating Cost and reserves. Excludes account keeping administration fees.
2This is based on the median return from the June 2018 SuperRatings SR50 Balanced Survey. SuperRatings is a ratings agency that collects information from superannuation funds to enable performance comparisons. The SR 50 Balanced Survey (survey data as at 18th July 2018) includes investment options that are broadly similar to the Growth (Cbus MySuper) option, as these funds are all diversified with an allocation to growth assets of between 60% and 76%.