Monthly highlights

  • The Growth (MySuper) option returned -1.42% for the month of April and 0.11% for the 12 months ending 30 April 2022.
  • Australian and Global shares* delivered a return of -0.84% and -7.02% (hedged) respectively for the month of April 2022.
  • The Reserve Bank of Australia left the cash rate unchanged at 0.10% in its April meeting. 

*ASX 300 Accumulation Index and MSCI ACWI ex Aust Net Divs Custom Tax Hedged to AUD.

Super Investment Option Performance (crediting rate)

Pre-mixed options:

The Conservative Growth accumulation option commenced on 6 July 2017.   Until 14th February 2022, Cash was formally known as Cash Savings, and Growth (MySuper) was formually known as Growth (Cbus MySuper).
 

  High Growth Growth Plus

Growth

(MySuper)

Indexed

Diversified

Conservative

Growth

Conservative
1 month -2.07% -1.86% -1.42% -2.45% -1.26% -1.09%
FYTD  -0.47% -1.13% 0.11% -2.39% -1.08% -1.84%
1 Year 3.33% n/a 3.42% n/a 1.24% -0.07%
5 Years p.a. 9.09% n/a 7.57% n/a n/a 3.91%
10 Years p.a. 10.77% n/a 9.27% n/a n/a 5.24%
Funds managed ($m) 4,742.17 455.16     59,169.72 9.95 851.71 1,228.52

DIY options

The Growth Plus, Indexed Diversified, Overseas Shares, Australian Shares, Property and Diversified Fixed Interest options commenced on 14 February 2022 therefore crediting rate information for longer time periods are not applicable.
 

 

Overseas

Shares

Australian

Shares

Property

Diversified

Fixed Interest

Cash
1 month -3.07% -1.20% -0.26% -1.35% 0.00%
FYTD -8.38% 3.34% 3.60% -3.01% 0.11%
Funds managed ($m) 31.79 152.40 45.83 37.78 1,209.94

Transition to Retirement Option Performance (crediting rate)

Pre-mixed options:

The Conservative Growth option commenced on 1 July 2017.  Until 14th February 2022, Cash was formally known as Cash Savings.
 

  High Growth Growth Plus Growth

Indexed

Diversified

Conservative

Growth

Conservative
1 month -2.08% -1.95% -1.55% -2.35% -1.26% -1.09%
FYTD  -0.50% -2.01% 0.04% -2.29% -1.08% -1.82%
1 Year 3.31% n/a 3.33% n/a 1.25% -0.04%
5 Years p.a. n/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 n/a
Funds managed ($m) 22.05 3.60 186.47 0.01 137.67 20.01

DIY Options:

The Growth Plus, Indexed Diversified, Overseas Shares, Australian Shares, Property and Diversified Fixed Interest options commenced on 14 February 2022 therefore crediting rate information for longer time periods are not applicable.
 

 

Overseas

Shares

Australian

Shares

Property

Diversified

Fixed Interest

Cash
1 month -3.09% -1.22% -0.30% -1.35% 0.00%
FYTD -8.55% 3.40% 3.45% -3.01% 0.11%
Funds managed ($m) 0.32 1.82 0.31 0.61 10.11

Fully Retired Option Performance (crediting rate)

Pre-mixed options:

The Conservative Growth Income Stream option commenced on 1 December 2013.  Until 14th February 2022, Cash was formally known as Cash Savings.
 

  High Growth Growth Plus Growth

Indexed

Diversified

Conservative

Growth

Conservative
1 month -2.24% -1.96% -1.64% -2.73% -1.47% -1.26%
FYTD  0.17% -1.35% 0.41% -2.58% -0.86% -2.05%
1 Year 4.34% n/a 3.95% n/a 1.67% -0.40%
5 Years p.a. 10.21% n/a 8.51% n/a 6.63% 4.41%
10 Years p.a. 12.02% n/a 10.35% n/a n/a 5.91%
Funds managed ($m) 157.32 22.49 1,656.00 0.19 1,915.13 752.45

DIY options: 

The Growth Plus, Indexed Diversified, Overseas Shares, Australian Shares, Property and Diversified Fixed Interest options commenced on 14 February 2022 therefore crediting rate information for longer time periods are not applicable.
 

 

Overseas

Shares

Australian

Shares

Property

Diversified

Fixed Interest

Cash
1 month -3.41% -1.32% -0.46% -1.59% 0.00%
FYTD -9.34% 3.60% 2.80% -3.53% 0.14%
Funds managed ($m) 2.87 19.15 6.30 15.87 149.68

Market overview

Investment Environment Overview (current as at 31 May 2022)

Data on global economic activity have been mixed in recent weeks. In the US, employment growth remains strong, with another 428,000 jobs added in April and the unemployment rate steady at 3.6%. However, some more forward-looking indicators such as the regional manufacturing surveys have softened, which bears watching closely.

Australia’s economy also remains generally robust, with the unemployment rate reaching a record low 3.9% in April and the NAB business conditions index lifting to 20 – the strongest reading since before the lockdowns began in mid-2021. Wages data for Q1 2022, released in mid-May, were not as strong as generally expected. At 2.4% year-on-year, wage growth in Australia had not yet lifted to the same extent as seen in several other economies. That implies less inflationary pressure overall, but also means household real incomes are weakening, something that has been reflected in weaker consumer confidence readings.

The major European economies, where energy price inflation has been especially acute, are showing clearer signs of faltering growth. The UK economy contracted marginally in March, and in its latest forecasts the Bank of England forecast an outright recession in late 2022 (and yet still increased interest rates in an effort to quell inflation). German industrial production shrank by a surprising 3.9% month-on-month in March, with forward orders declining by even more. As well as the headwind from energy costs, China’s ongoing lockdowns have contributed to both supply chain disruptions and weaker demand. In China itself, recent activity data has been very weak, especially for the services sectors. Lower Covid case numbers have supported plans for gradual reopening, but further flare-ups are likely to be met with more lockdowns as the commitment to a covid-zero strategy remains in place.

Despite growing risks to global growth, continued strength in inflation data means that monetary policy remains on a tightening path almost everywhere. The US Federal Reserve has signalled a collective 100bps of rate hikes are likely across its next two meetings, and additional hikes are also expected in New Zealand, Canada and Australia. The European Central Bank is also widely expected to increase its policy rate during the next few months, which would be the first increase since 2011. Globally, tighter policy settings are likely to make for a less favourable environment for growth assets such as equities, especially if the end result is a sharp slowdown in global economic growth.

 

 

Asset allocation

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

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

 

Actual allocation 30/04/2022 Growth (MySuper)
Australian shares 23.64%
Global shares 22.28%
Emerging market shares 6.58%
Private equity 1.96%
Alternative growth 1.24%
Infrastructure 12.57%
Property 12.70%
Global Credit 7.51%
Fixed interest 6.82%
Cash 4.69%
Growth / Defensive allocation split 72.09% / 27.91%

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 (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.