Cbus delivers strong financial year return
The global pandemic has been the biggest single driver of market fluctuations in the last 18 months however despite the challenges, our resilience and collegiate investment approach at Cbus enabled us to deliver strong outcomes for all our members.
We are pleased to advise that Cbus has delivered an outstanding result of 19.34% for our Growth (Cbus MySuper) option.
This is great news and shows how important it is to remain invested for the long term, which is also reflected in our 5, 10 and 15-year returns.
Performance (%) to 30 June 2021
|Return||Growth (Cbus MySuper)*|
|1 year %||19.34%|
|5 years % p.a.||9.81%|
|10 years % p.a.||9.55%|
|15 years % p.a.||7.36%|
* The return for the Growth (Cbus MySuper) option is based on the crediting rate, which is returns minus investment fees, taxes and until 31 January 2020, the percentage-based administration fee. Excludes fees and costs that are deducted directly from member’s account.
Diversification underpins our performance
The outstanding 12-month return for the Growth (Cbus MySuper) option during a challenging period highlights the benefit and importance of active management and diversification in Cbus’ multi-asset investment options.
Cbus’ significant investments in asset classes such as Australian and global shares, infrastructure and property have helped deliver a fantastic result over the past 12 months to 30 June 2021. The investment team’s total portfolio approach and active management of investments – both internal and external – allows them to take advantage of opportunities quickly. Our decision to continue to invest in Australian businesses early during the Covid crisis has paid off. In addition, we were able to support more than 279,000 applications from our members totalling $2.3 billion in early access payments of their super due to financial hardships as a result of the pandemic.
A really important message that has played a large part of our successful investment strategy is that we invest with a medium to long-term horizon and seek to prepare the portfolio for evolving market conditions. It is important to be able to navigate through the speed bumps along the way. Many funds would have benefited from the FY2021 market environment, but not all have been able to deliver positive returns year after year, and that’s something we’re really proud to continue to deliver. Managing risk is just as important as taking advantage of market opportunities, and again this is where the benefits of active management come into play.
From recovery to expansion
Although the global pandemic is not over, with vaccine roll outs still to play out, health outcomes will drive the next phase of the recovery. The initial crisis response was focused on containing the virus where possible, and limiting the economic damage from those containment measures. Now the focus has moved on to vaccine rollouts and economic policymakers have turned their attention to supporting a robust economic recovery.
Looking ahead for the rest of 2021, we anticipate we will see strong rates of growth in economic activity, as economies reopen, and governments continue to spend to stimulate activity. However, most economies will for some time be operating well below where they would have been if the pandemic had never happened.
Share markets have risen strongly over the past year and now look to be pricing in a strong economic rebound. This suggests the pace of market gains is likely to ease back from here, highlighting the importance of both active investment management – being able to pick the most attractive opportunities in what looks to be an expensive market – and holding a diversified portfolio of assets beyond shares. There is a very valuable role in our portfolio for property and infrastructure with over 20% of our portfolio in these two asset classes.
Cbus will continue to invest in property and infrastructure opportunities and businesses with strong sustainable cash flows, aligned to long-term growth trends. As the world continues to evolve, we’ll evolve with it. Adapting to things like Cbus Property’s new build requirements to include ‘working from home’ facilities is just one example of the changes we’re making.
Investing in super is about the long-term and we will continue to make sure your hard-earned savings will help you secure a better retirement future.