Monthly highlights

  • The Growth (Cbus MySuper) option returned 2.28% for the month of April and 19.64% for the 12 months ending 30 April 2021.
  • Australian and Global shares delivered returned 2.93% and 3.70% (hedged) respectively.
  • The Reserve Bank of Australia left the cash rate unchanged at 0.10% in its meeting on 6 April. 

Super Investment Option Performance (crediting rate)

 

  Cash Savings Conservative Conservative Growth* Growth (Cbus MySuper) High Growth
1 month 0.02% 1.05% 1.63% 2.28% 2.88%
FYTD  0.07% 4.87% 9.97% 15.51% 21.31%
1 Year 0.10% 6.26% 12.80% 19.64% 27.67%
5 Years p.a. 1.16% 5.25% n/a 9.39% 11.54%
10 Years p.a. 1.90% 5.86% n/a 9.26% 10.56%
Funds managed ($m) 946.67 1,037.23 702.30 51,897.72 3,848.19

*The Conservative Growth accumulation option commenced on 6 July 2017.

Transition to Retirement Option Performance (crediting rate)

 

  Cash Savings* Conservative* Conservative Growth* Growth*
High Growth*
1 month 0.02% 1.05% 1.64% 2.24% 2.89%
FYTD  0.08% 4.87% 10.00% 15.23% 21.37%
1 Year 0.10% 6.26% 12.87% 19.43% 27.72%
5 Years p.a. n/a n/a n/a n/a n/a
10 Years p.a. n/a n/a n/a n/a n/a
Funds managed ($m) 8.83 20.10 161.00 156.79 25.92

*These options commenced on 1 July 2017. 

Fully Retired Option Performance (crediting rate)

 

  Cash Savings Conservative Conservative Growth* Growth High Growth
1 month 0.02% 1.19% 1.82% 2.48% 3.17%
FYTD  0.09% 5.38% 11.14% 16.88% 23.60%
1 Year 0.13% 7.29% 14.46% 21.87% 31.23%
5 Years p.a. 1.46% 5.99% 8.46% 10.53% 12.83%
10 Years p.a. 2.31% 6.64% n/a 10.33% 11.73%
Funds managed ($m) 91.15 591.50 1,672.67 1,114.55 120.43

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

Market overview

Investment Market Update

Global share markets have generally moved sideways in recent weeks as they continue to grapple with uncertainty surrounding the inflation outlook. Trillions of dollars in unprecedented government spending helped keep the global economy afloat during the pandemic, but there’s now concern that this extra cash and pent-up demand may cause problematic cyclical inflation that could prompt central banks to tighten monetary policy settings (raise interest rates) sooner or more aggressively than has generally been expected.

Recent data showed that the US Consumer Price Index (CPI) rose 4.2% over the 12 months ending in April 2021; the largest increase since the 4.9% recorded in the 12 months leading up to the GFC in September 2008. This increase was well above expectations of a 3.6% rise.

However, US Federal Reserve officials insist the spike in inflation will be short-lived and is simply due to pandemic-related disruptions. They predict inflation will subside by next year and fall back toward the central bank’s 2% target. Indeed, the marked lift in inflation has so far been driven by a small subset of goods and services that have been particularly exposed to the effects of the pandemic. This includes travel-related services, which saw large price declines in 2020, and consumer goods, where very strong demand has created delays and supply-chain bottlenecks. Observers will be paying close attention to inflation data over coming months, watching for any signs of more widespread inflation pressure.

Meanwhile, global growth indicators remain at very high levels and policy settings are likely to remain supportive for an extended period. Fundamentally, the recovery is being driven by the continuing vaccine rollout and reopening of economies. Most developed economies are now well-advanced in terms of vaccinations, with a notable acceleration seen in Europe over the past month or so. Progress in EM remains much slower, which continues to pose a risk of renewed outbreaks and/or mutations of Covid-19. Fortunately, India does now seem to be past the peak of its recent surge in Covid-19 cases.

Federal Budget 2021-22

The Morrison Government has delivered its third Budget loaded with spending measures directed at job creation and social programs. A faster than expected rebound in the labour market and soaring iron ore prices have driven an improvement in the overall fiscal position, and the government has chosen to spend some of this windfall to support the economic recovery. The Budget still projects large (albeit narrowing) deficits over the forecast horizon, but Australia’s government debt still remains low relative to most other developed economies. 

For more on the Budget, see our factsheet here: Cbus’ Federal Budget 2021-22 Quick facts.  

 

Sources: FactSet, 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.

Asset allocation

The Strategic Asset Allocations for all investment options can be found on the following pages:

The Actual Allocation for the Growth (Cbus MySuper) option is shown below.

 

Actual allocation 30/4/2021 Growth (Cbus MySuper)
Australian shares 23.53%
Global market shares 25.46%
Emerging market shares 6.31%
Private equity 2.68%
Alternative growth 1.55%
Infrastructure 10.95%
Property 10.55%
Mid-risk alternatives 6.13%
Fixed interest 6.71%
Cash 6.13%
Growth / Defensive allocation split 73.30% / 26.70%

Note: Growth assets include Australian Shares, International Shares, Private Equity, Alternative Growth, 50% of Infrastructure, 50% of Property and 50% of Mid-Risk Alternatives. Defensive assets include Cash, Fixed Interest, 50% of Infrastructure, 50% of Property and 50% of Mid-Risk Alternatives.

Figures are subject to rounding. Actual asset allocation is current as at 31 July 2020. 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.

 

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 fees, the taxes, and until 31 January 2020, the percentage-based administration fee. Excludes fees and costs that are deducted directly from members’ accounts.

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.