Monthly highlights

  • The Growth (Cbus MySuper) option returned 0.47% for the month of January and 3.87% for the 12 months ending 31 January 2021.
  • Australian and Global shares delivered returned of 0.33% and -0.20% (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 0.00% -0.02% 0.25% 0.47% 0.62%
FYTD  0.05% 3.74% 6.79% 10.15% 13.77%
1 Year 0.27% 2.33% 3.22% 3.87% 5.42%
5 Years p.a. 1.25% 5.43% n/a 9.09% 11.03%
10 Years p.a. 2.00% 5.89% n/a 8.87% 9.94%
Funds managed ($m) 1,115.38 1,095.34 640.21 49,068.73 3,388.20

*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 0.00% -0.02% 0.25% 0.54% 0.62%
FYTD  0.05% 3.75% 6.81% 10.00% 13.79%
1 Year 0.27% 2.33% 3.26% 4.01% 5.45%
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) 11.34 22.40 163.60 150.75 24.80

*These options commenced on 1 July 2017. 

Fully Retired Option Performance (crediting rate)

 

  Cash Savings Conservative Conservative Growth* Growth High Growth
1 month 0.00% -0.03% 0.26% 0.57% 0.66%
FYTD  0.07% 4.15% 7.60% 11.05% 15.22%
1 Year 0.32% 2.83% 3.99% 4.33% 5.73%
5 Years p.a. 1.57% 6.25% 8.45% 10.25% 12.29%
10 Years p.a. 2.43% 6.69% n/a 9.92% 11.07%
Funds managed ($m) 115.14 609.79 1,522.76 1,018.49 105.40

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

Market overview

January saw divergent performance for shares, with developed market equities ending the month lower while emerging market equities posted positive returns. US equities declined, as we saw an unusual cohort of retail investors contribute to a rise in market volatility. The European Commission’s consumer confidence survey fell by 1.7 points compared to December. Data showed the German economy grew by 0.1% in Q4 2020, while French GDP shrank 1.3%. In the UK, the FTSE All-Share index posted negative returns in January amid weakness in the financials, industrials and consumer goods sectors.

Government yields rose early in the month (meaning Bond prices fell). In the US, the Democrats secured control of Congress to raise expectations of more fiscal stimulus. The US 10-year bond yield increased by 18 basis points (bps) to 1.09% over the month. The UK 10-year yield followed a similar path, rising just over 13bps, to 0.32%. In Europe, yields rose early on too, but were balanced by perceived hawkishness from the European Central Bank (ECB) and rising political risk in Italy. The German 10-year bonds finished 5.5bps higher at -0.51%

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 31/01/2021 Growth (Cbus MySuper)
Australian shares 21.39%
Global market shares 27.72%
Emerging market shares 6.27%
Private equity 2.72%
Alternative growth 1.47%
Infrastructure 11.13%
Property 10.17%
Mid-risk alternatives 5.64%
Fixed interest 6.85%
Cash 6.63%
Growth / Defensive allocation split 73.05% / 26.95%

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.