Monthly highlights

  • The Growth (Cbus MySuper) option returned 9.23% for the financial year to date ending 31 March 2017.
  • The Target Portfolio was unchanged for the month of March.
  • The Australian share market and most international share markets were positive over the month of March.
  • The Reserve Bank of Australia left the cash rate unchanged at 1.5% at its March and April meetings.

 

*This estimate is based on inflation data for the 10 years to 31 December 2016 as inflation data is only available quarterly. It is based on a weighted average of the investment performance objective over the past 10 years.

**SuperRatings is a ratings agency that collects information from superannuation funds to enable performance comparisons. The SR 50 Balanced Survey 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%. SuperRatings data is for March 2017.

 

 

 

Growth (Cbus MySuper) investment objective 

From November 2015, a return objective of at least 3.25% p.a. above the rate of inflation, after investment fees and tax over a 10 year period, expected to be achieved at least 75% of the time, with a likelihood of a negative annual return being 3 in every 20 years.

 

 

Over the past 10 years, the Growth (Cbus MySuper) option has outperformed its investment objective and outperformed the SuperRatings SR50 Balanced median. 

Super investment option performance (crediting rate)

  Growth (Cbus MySuper) Cash Savings Conservative High Growth
1 month 1.68% 0.13%
0.78%
2.18%
FYTD 9.23% 1.14%
4.21%
11.76%
1 year 12.24%
1.59%
6.39%
15.39%
5 years p.a 10.72%
2.18%
6.53%
12.09%
10 years p.a 6.07%
n.a* 5.80%
5.76%
Funds managed ($m) 33,226.56 459.68 785.90 1,640.60

*Returns for the Cash Savings option are not available for the 10 year period. The Cash Savings option commenced in July 2009.

 

Super Income Stream Investment option performance (crediting rate)

  Conservative Growth* Cash Savings Conservative Growth  High Growth
1 month 1.42% 0.16%
0.92%
1.87%
2.45%
FYTD 7.45%
1.46%
4.70%
10.24%
13.12%
1 year 10.55%
2.03%
7.25%
13.93%
17.37%
5 year p.a n.a
2.66%
7.37%
11.95%
13.47%
10 year p.a** n.a n.a n.a n.a n.a
Funds managed ($m) 709.97 70.40 494.43 758.62 66.77

*The Conservative Growth Income Stream option commenced on 1 December 2013.

**Returns for all Super Income Stream options are not yet available for the 10 year period. 

Market overview

Global share market performance was positive in March, although with some dispersion across countries. Financial year-to-date performance has been strong for shares and property.

The Australian share market was up 3.28% from the previous month, and up by 15.64% over the financial year to date. All sectors performed positively this month. The best performing sector was Utilities, up 6.28%, and the worst performing sector was Materials, which was up 0.22%.

The Reserve Bank of Australia (RBA) left interest rates on hold at its March meeting.

The Australian dollar remained reasonably flat at $0.76 against the US dollar as at the end of March.

Source: Datastream, Frontier Advisors, Citigroup and JP Morgan. The investment market returns represented above are not Cbus asset class returns. They are returns for each market as measured by standard market indices. More information on these market indices can be found in the Glossary. For unhedged international shares and market shares, when the Australian dollar falls against currencies in major share markets, and there is no currency hedging, international market returns in Australian dollar terms are higher.

 

Source: Datastream. Monthly sector returns are represented by the S&P/ASX 300 (Accumulation) sectors.

Asset allocation (actual)

Super  options Growth (Cbus MySuper) Cash Savings Conservative High Growth
Australian shares 26.2%   10.0% 40.0%
International shares 22.3%   9.5% 33.5%
Private equity 5.4%   0.0% 7.0%
Opportunistic growth 3.5%   0.0% 4.5%
Infrastructure 10.8%   5.0% 7.0%
Property 11.2%   6.5% 8.0%
Alternative debt (formerly credit) 7.5%   10.0% 0.0%
Fixed interest 5.5%   28.5% 0.0%
Cash 7.5% 100% 30.5% 0.0%

 

 

Super Income Stream options Conservative Growth Cash Savings Conservative Growth High Growth
Australian shares 18.5%   11.0% 27.5%
43.0%
International shares 14.0%   8.5%
19.0%
30.5%
Private equity 1.5%   0.0%
5.5% 7.0%
Opportunistic growth 0.5%   0.0%
3.5%
4.5%
Infrastructure 9.0%   5.0%
11.0%
7.0%
Property 10.5%   6.5%
11.0%
8.0%
Alternative debt (formerly credit) 7.5%   10.0%
8.0%
0.0%
Fixed interest 17.0%   28.5%
6.0%
0.0%
Cash 21.5% 100% 30.5%
8.5%
0.0%

 

 

Figures are subject to rounding. Actual asset allocation is current as at 31 March 2017 Asset classes are the building blocks of our investment options. We allocate different proportions to each asset class with the aim of meeting each option’s investment risk and return objective. By investing across a range of asset types, the risk of loss is reduced through diversification. 

For more information see asset classes.

We periodically review our investment strategy and believe that the Growth (Cbus MySuper) option is well positioned for growth over the medium to long term, while maintaining some defensive exposure. Cbus’ investment options, with the exception of the Cash Savings option, are broadly diversified across asset classes.

The Target Portfolio for each option is reviewed at least quarterly, with a threshold level of change required before the Target Portfolios of the non-default options are amended.

Glossary

Investment type Market index

Australian shares

S&P ASX 300 Accumulation Index

Global shares – currency hedged

MSCI All Countries World Ex-Australia Index (Hedged, $A)

Global shares – currency unhedged

MSCI All Countries World Ex-Australia ($A)

Emerging markets – currency unhedged

MSCI Emerging Markets ($A)

Australian unlisted property

MSCI/IPD Australian Property Pooled Index

Australian bonds

Bloomberg AusBond Composite Bond Index

Global bonds

Citi World Government Bond Index (Hedged, $A)

Australian cash

Bloomberg AusBond Bank Bill Index

Disclosure

Past performance is not a reliable indicator of future performance. All Cbus performance and return figures disclosed in this investment update are based on the crediting rate, which is the return minus investment costs and taxes; the Trustee Operating Cost and reserves. They do not take into account administration fees. 

The information is about Cbus. It doesn’t take into account your specific needs, so you should look to your own financial position, objectives and requirements before making any financial decisions. Read the Cbus Product Disclosure Statement to decide whether Cbus is right for you, or call 1300 361 784 for a copy.