Remaining focused on the long-term as global factors impact short-term returns 

The financial year 2022 saw investment returns across the superannuation industry impacted by a range of global factors. 

Rising inflation has seen the Reserve Bank of Australia and central banks overseas raise interest rates, the Russia/Ukraine crisis has impacted energy, gas and commodity markets, and the ongoing Covid-19 pandemic has put further pressure on global supply chains. Combined, these events have increased market volatility and affected short-term investment returns across a wide range of investments and asset classes. 

Our robust investment approach and highly diversified portfolios have enabled us to deliver strong long-term outcomes for our members.  This equates to an average annual return of 8.88% p.a.* for the Growth (MySuper) option since its inception 38 years ago.

While investment returns have been impacted across the superannuation industry, our short-term returns have largely been driven by our relatively larger allocation to emerging market equities – an asset class that provides diversification benefits and has a higher expected return over the long-term but has been impacted by global events such as the war in Ukraine as well as increased regulation imposed on a few key industries in China. 

Despite lower short-term returns, our options have delivered strong long-term outcomes for members, which is what super is designed to deliver.

Investment Performance (%) to 30 June 2022

  Growth (MySuper) investment option*
1 year % -3.77%
3 years % p.a. 4.98%
5 years % p.a. 6.55%
10 years % p.a. 8.96%
15 years % p.a. 5.94%
Since inception p.a. 8.88%

*Past performance is not a reliable indicator of future performance. The crediting rates are based on returns minus investment fees, taxes and until 31 January 2020, the percentage-based administration fee. Excludes fees and costs that are deducted directly from members’ accounts. The inception date is 1 July 1984. 

Our commitment to investing in opportunities that benefit our members retirement outcomes 

The investment team designs the Fund’s investment strategy to deliver strong long-term returns for our members.  In the last financial year, we made a number of significant investments with long-term returns in mind. 

The investment team’ total portfolio approach enabled them to act quickly and take advantage of market opportunities regardless of what market conditions they were faced with. 

Earlier in the year we invested alongside leading integrated real estate group, Dexus in acquiring a 33.3% stake in Western Australian’s Jandakot joint venture project which holds the Jandakot general aviation airport, existing industrial properties and developable land which will also help create significant jobs for the local community.

Whilst navigating through challenging market conditions, we were also pleased to have introduced six new investment options. This expanded suite (now comprising 12 investment options in total) provides our members with greater choice and flexibility to meet their retirement needs and allowed us to deliver on our successful Media Super merger. 

Our total portfolio approach to responsible investing ensures our members’ retirement savings take material ESG risks into account, and benefit from new opportunities and innovations. One such innovation is our recent partnership with Copenhagen Infrastructure Partners (CIP) in acquiring a 10% stake in CIP’s Australian offshore wind project, Star of the South.  

Star of the South is Australia’s most progressed offshore wind project and will be located off the south coast of Gippsland in Victoria.  Star of the South has the potential to power around 1.2 million homes and supply up to 20% of Victoria’s electricity needs while creating jobs and investment in the Gippsland region.

We will continue to invest in opportunities and businesses with strong sustainable growth and as the world continues to evolve, we’ll evolve with it. 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.

A message from our Chief Investment Officer

Disclaimer

Past performance is not a reliable indicator of future performance.

United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 as Trustee for Cbus Super Fund ABN 75 493 363 262. The information in this document is general in nature and does not take into account your personal objectives, situation or needs. 

Before taking any action to acquire a Cbus product, you should read the relevant Product Disclosure Statement (PDS), Financial Services Guide (FGS), Employer Handbook and any other related documents to decide if Cbus is right for you. Call 1300 361 784 or visit cbussuper.com.au/forms for a copy. Also read the Target Market Determination at cbussuper.com.au/tmd. Call 1300 361 784 or visit cbussuper.com.au for a copy.