Monthly highlights

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

*These options commenced on 1 July 2017. 

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

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%

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 (Cbus 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.