What Cbus invests in and how we invest
The Growth (Cbus MySuper) option has been delivering strong returns for members for a long time with an average annual return of 9.24%1 p.a. since inception in 1984. The option returned 11.85% in the year to 30 June 2017.
A key driver of long-term returns is the fact that the Growth (Cbus MySuper) option invests in a wide range of investments, including unlisted assets such as property and infrastructure.
Investing in unlisted assets
Cbus invests a meaningful portion of the Fund in unlisted property and infrastructure assets. For example, the Growth option currently has around 20% invested in these assets. We can invest in these assets because we’re investing for the long-term and have strong cash flows from members’ contributions.
Unlisted property and infrastructure investments are expected to provide long term returns that are comparable with share markets, but with less variability. Their returns tend to be more stable than shares because the revenues for these assets typically reflect long-term contracts (often linked to inflation). In addition, these assets are valued less frequently than shares and their valuations are based on longer-term factors, such as assumptions for risks, revenue growth and interest rates.
Port Botany, NSW, a Cbus infrastructure investment
The returns to property and infrastructure have been very strong in recent years. For example, Cbus Property investments have returned 15.95% p.a. since inception in 2006 and returned 24.3% in the last financial year.
Cbus Property is a property developer and manager, and a wholly owned subsidiary of Cbus. Its responsible for the strategic performance and management of Cbus direct property developments and investments. Along with generating favourable returns, Cbus Property also contributes to the local economy and creates jobs in the industry where most of our members work.
Why is this important for members?
By investing in a wide range of assets including unlisted assets Cbus has been able to deliver strong returns for members through a range of market conditions since 1984.
1 Based on the crediting rate to 30 June 2017, which is the return minus investment fees, the Trustee Operating Cost and taxes. Excludes account keeping administration fees.
Cbus Property investments are part of the property asset class in the High Growth, Growth, Conservative Growth and Conservative investment options and these returns form part of the crediting rates allocated to accounts invested in these options.
Past performance is not a reliable indicator of future performance.