Monthly highlights

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 formally known as Growth (Cbus MySuper).
 

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.
 

Pre-mixed options:

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

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.
 

December Quarter 2022 Investment Environment Review (current as at 25 January 2023)

After three negative quarters in a row, the final quarter of 2022 delivered positive equity market returns as hopes grew for a central bank ‘pivot’ and an economic soft landing. Following a significant sell-off over August and September, markets bottomed for 2022 at the end of Q3 and rebounded over October and November. Although some of those gains were reversed in December, the MSCI All Country World Index (ACWI) ended the quarter up 7.0%. However, that still left the index 17.5% below where it began the year.

Inflation remained the key theme for markets. While remaining far above central bank targets, annual rates of inflation have begun to ease in most developed markets, especially on a headline basis. In the US, the CPI undershot expectations in both November and December, and the crucial core CPI measure has now eased for three consecutive months, potentially marking an important turning point. Lower energy prices and government subsidies have also seen headline inflation ease in Europe. In Australia, inflation is expected to have peaked in Q4 2022.

This news has been welcomed by markets, which rallied as the odds of a soft landing – in which inflation comes back to target without a significant economic slowdown – increased. Expectations have also grown that most central banks will pause their monetary tightening in H1 2023. Bond yields have generally fallen since October as markets price in that imminent peak in short-term rates and begin to increasingly price in rate cuts from late 2023 onwards.

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

• Super options
• Transition to Retirement options
• Fully Retired options

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

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.