Monthly highlights

  • The Growth (Cbus MySuper) option returned 1.31% for the month of December and 5.07% for the 12 months ending 31 December 2020.
  • Australian and Global shares delivered returned of 1.32% and 3.78% (hedged) respectively.
  • The Reserve Bank of Australia left the cash rate unchanged at 0.10% in its meeting on 2 December.

Super Investment Option Performance (crediting rate)

 

  Cash Savings Conservative Conservative Growth* Growth (Cbus MySuper) High Growth
1 month 0.01% 0.52% 0.87% 1.31% 1.34%
FYTD  0.05% 3.76% 6.52% 9.64% 13.06%
1 Year 0.33% 3.85% 4.57% 5.07% 6.83%
5 Years p.a. 1.29% 5.38% n/a 8.65% 10.32%
10 Years p.a. 2.03% 5.96% n/a 8.92% 9.99%
Funds managed ($m) 1,180.86 1,115.83 623.76 48,672.26 3,305.11

*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 0.01% 0.52% 0.87% 1.24% 1.35%
FYTD  0.05% 3.77% 6.54% 9.41% 13.09%
1 Year 0.34% 3.86% 4.63% 5.15% 6.88%
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) 13.28 23.31 165.97 149.10 26.02

*These options commenced on 1 July 2017. 

Fully Retired Option Performance (crediting rate)

 

  Cash Savings Conservative Conservative Growth* Growth High Growth
1 month 0.01% 0.59% 0.98% 1.38% 1.50%
FYTD  0.06% 4.18% 7.32% 10.42% 14.47%
1 Year 0.41% 4.62% 5.58% 5.65% 7.39%
5 Years p.a. 1.61% 6.18% 8.17% 9.72% 11.38%
10 Years p.a. 2.47% 6.77% n/a 9.97% 11.13%
Funds managed ($m) 124.31 617.52 1,503.37 1,001.81 100.40

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

Market overview

In the fourth quarter, equity markets continued to rally for the third consecutive quarter and significantly outperformed fixed income. The US election result and positive news on Covid-19 vaccines helped more cyclical segments of the market to recover. Value stocks rose by 16% and had their best quarter since 2009. Even more spectacular was the performance of small caps, which returned 24%, erasing the underperformance vs. large caps for the year. Growth equities gained nearly 13%, underperforming over the quarter, but are still ahead by a wide margin for the calendar year. Rising commodity prices were driven by strong demand for industrial metals in Asia. Oil prices also rose, aided by the vaccine news.

The MSCI All Country World Index rose 14.3% to 646 points for the calendar year, the S&P 500 Index outperformed all others and lifted 16.3% to 3,756 points and China’s Shanghai Composite Index was up 13.9% to 3,473 points. In comparison, the Australian S&P/ASX 300 Index edged down 1.17% partly due to the lower index weighting to Technology stocks, exacerbated by underperformance in the energy and utilities stocks. The Information Technology and Materials sectors were the standout — rallying 56.4% and 13.4% respectively. By contrast, the Energy sector was the weakest — down 29.9% and the Utilities fell 21.5%.

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 31/12/2020 Growth (Cbus MySuper)
Australian shares 22.87%
Global market shares 26.42%
Emerging market shares 6.46%
Private equity 2.72%
Alternative growth 1.08%
Infrastructure 11.22%
Property 10.03%
Mid-risk alternatives 5.65%
Fixed interest 7.04%
Cash 6.50%
Growth / Defensive allocation split 73.10% / 26.99%

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.