Monthly highlights

  • The Growth (MySuper) option returned -2.13% for the month of January and 10.08% for the 12 months ending 31 January 2022.
  • Australian and Global shares* delivered a return of -6.45% and -4.70% (hedged) respectively for the month of January 2022.
  • The Reserve Bank of Australia left the cash rate unchanged at 0.10% in its meeting on 8 December (no meetings in January 2022).  

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

Super Investment Option Performance (crediting rate)

 

  Cash Savings Conservative Conservative Growth* Growth (MySuper) High Growth
1 month 0.02% -1.22% -1.83% -2.13% -3.05%
FYTD  0.12% 0.46% 0.88% 1.61% 1.36%
1 Year 0.19% 3.38% 6.33% 10.08% 12.22%
5 Years p.a. 0.96% 4.89% n/a 8.78% 10.64%
10 Years p.a. 1.61% 5.74% n/a 9.82% 11.48%
Funds managed ($m) 1,001.12 1,055.83 815.18 55,256.02 4,472.84

*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 0.02% -1.21% -1.84% -2.16% -3.06%
FYTD  0.12% 0.48% 0.87% 1.61% 1.35%
1 Year 0.19% 3.41% 6.32% 9.93% 12.25%
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) 7.67 15.87 141.81 146.39 21.56

*These options commenced on 1 July 2017. 

Fully Retired Option Performance (crediting rate)

 

  Cash Savings Conservative Conservative Growth* Growth High Growth
1 month 0.03% -1.52% -2.10% -2.61% -3.52%
FYTD  0.15% 0.36% 0.95% 1.65% 1.52%
1 Year 0.22% 3.26% 6.93% 10.75% 13.44%
5 Years p.a. 1.20% 5.44% 7.76% 9.72% 11.75%
10 Years p.a. 1.97% 6.47% n/a 10.94% 12.75%
Funds managed ($m) 116.43 583.84 1,850.33 1,290.20 144.53

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

Market overview

Investment Environment Overview (current as at 28/02/2022)

The investment environment in 2022 is likely to be dominated by two opposing forces – continued economic recovery and rising interest rates.

Inflation and expected monetary policy tightening from central banks remain key market drivers. The Federal Reserve’s January meeting indicated that the US will look to increase interest rates as early as March 2022. Share markets have reflected these expectations with major indices “cooling off” from their end of 2021 highs.

Rising interest rate expectations added to the selling of “growth stocks” (listed companies that are considered to have the potential to outperform the overall market over time because of their future potential), particularly in sectors which had benefited from the change in consumer spending habits during the depths of the pandemic. However, even as “value sectors” (larger, more well-established companies that are trading below the price that analysts feel the stock is worth) were down for the month, but still outperformed growth sectors.

Even safe havens were not safe in January as bonds sold off along with shares, providing a stark warning that in times of heightened inflation risk, bonds will provide less protection to portfolios than in times of recessionary risk.

The impact of the Omicron wave started to show up in the January data. Global indicators, such as the Purchasing Managers’ Index softened, and retail sales contracted in several countries as consumption was dampened. We expect this to reverse in the coming months as the impact of Omicron fades.

The January sell-off is a reminder that volatility in markets is normal and that 2021 was the exception rather than the rule. Choppy markets are likely to persist until there is greater clarity on central banks’ ability to deliver a soft landing and investors may want to maintain a more balanced position until then.

In late February, events in Ukraine led to a significant increase in uncertainty, with market volatility increasing. Concerns over oil supplies could derail the positive momentum in the global economy at a time when inflation is already high. 

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 31/01/2022 Growth (Cbus MySuper)
Australian shares 22.53%
Global shares 25.92%
Emerging market shares 6.71%
Private equity 2.03%
Alternative growth 1.01%
Infrastructure 11.78%
Property 11.86%
Global Credit 7.53%
Fixed interest 6.38%
Cash 4.23%
Growth / Defensive allocation split 73.80% / 26.20%

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.