Debt isn’t a bad word
Used well, it helps support the economy allowing businesses and individual assets to grow.
When people hear the word debt, they usually think of money they owe like a mortgage or personal loan. In super, it can mean something quite different.
Through direct debt investments, CBUS lends money directly to borrowers like Australian corporates, property investors and developers, in return for interest payments over an agreed period of time. This income helps grow your super balance alongside other investments.
How direct debt contributes to long‑term returns
Direct debt investments aim to provide stable income over the life of the investment. Most returns come from regular interest payments, rather than changes in price, like shares. These investments can be in private or public corporate debt and often come with security over the assets being financed.
It’s similar to a home loan. Just as a bank holds a claim over your property, debt investors may have rights over specific assets if repayments aren’t met. Interest is paid on a set schedule and lenders receive regular updates, so unless a borrower can’t make its payments anymore and there isn’t enough value in the security, pricing shouldn’t vary too much.
This is why direct debt plays an important role in our more conservative investment options, which tend to appeal to members nearing or in retirement. It also adds balance to our higher‑growth options.
Our approach is different
We are one of the few super funds with an in‑house direct debt team, allowing us to lend directly in addition to investing through external investment managers.
Having our own specialist team means we can:
- Assess risks carefully before we invest
- Negotiate loan terms that aim to protect members
- Monitor investments closely over time
- Act quickly if market conditions change
This approach gives us more control and helps us make informed decisions in members’ best financial interests.
Supporting members, industries and communities
Direct debt allows us to invest in ways that seek to benefit members beyond returns alone. By lending directly, we can support jobs in the construction industry and increase housing supply.
During the COVID pandemic, we were able to provide funding where traditional lenders were stepping back, supporting businesses and projects that may not have otherwise gone ahead.
Contributing to the wider economy
Since our internal direct debt team was established in 2017, we have:
- Provided around $3.6 billion in funding to Australian corporates, property investors and developers
- Helped finance the construction of over 1,600 residential apartments
- Supported commercial projects such as a data centre and cold‑storage facility
Many of our members may also know about the work we do with Fulcrum. Through our funding arrangement, we support the Australian film and television industry and bring entertainment to the big screen and into our members’ homes.
As of 31 March 2026, Fulcrum has loaned more than $881 million to help finance more than 480 screen productions across Australia and New Zealand.