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.
 

Investment Environment Overview (current as at 27 February 2023)

Financial markets started 2023 in a buoyant mood. The MSCI All Country World Index, which tracks all the major global share markets, rose by 8.5% between 31 December and 2 February, taking the index to the highest point since August 2022.

There were two key reasons for this bout of optimism. One was the end of China’s ‘covid-zero’ policy, which saw several major lockdowns during 2022 and had generally depressed activity even when formal lockdowns were not in place. The abandonment of the policy happened much sooner and more suddenly than expected. After an initial period of disruption as the virus swept through the country, economic prospects are now much improved and domestic demand looks set to rebound strongly during 2023. Reflecting this, as well as some possible easing of regulatory pressures on large Chinese tech companies, the MSCI China Index bounced by 59% over the three months to the end of January (although that still left the index 42% below its early-2021 peak).

The second reason for more optimism in markets overall was rising hopes for an economic ‘soft landing’. This followed clear signs that annual rates of inflation have peaked and are slowing – albeit gradually. In particular, US CPI inflation data came in slightly weaker than expected for three months in a row. The fact that this was happening with only a modest weakening in economic data suggested that the odds of bringing inflation down without a recession may be higher than previously believed.

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.