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- The Growth (Cbus MySuper) option returned 1.80% for the month of March and 20.99% for the 12 months ending 31 March 2021.
- Australian and Global shares delivered returned of 2.30% and 3.56% (hedged) respectively.
- The Reserve Bank of Australia left the cash rate unchanged at 0.10% in its meeting on 2 March.
Super Investment Option Performance (crediting rate)
| Cash Savings | Conservative | Conservative Growth* | Growth (Cbus MySuper) | High Growth | |
|---|---|---|---|---|---|
| 1 month | 0.00% | 0.65% | 1.25% | 1.80% | 2.36% |
| FYTD | 0.06% | 3.78% | 8.21% | 12.93% | 17.91% |
| 1 Year | 0.12% | 6.62% | 13.81% | 20.99% | 31.07% |
| 5 Years p.a. | 1.19% | 5.19% | n/a | 9.19% | 11.33% |
| 10 Years p.a. | 1.93% | 5.77% | n/a | 8.97% | 10.16% |
| Funds managed ($m) | 1,015.88 | 1,058.48 | 669.20 | 50,522.86 | 3,654.90 |
*The Conservative Growth accumulation option commenced on 6 July 2017.
Transition to Retirement Option Performance (crediting rate)
| Cash Savings* | Conservative* | Conservative Growth* | Growth* |
High Growth* |
|
|---|---|---|---|---|---|
| 1 month | 0.00% | 0.65% | 1.25% | 1.80% | 2.36% |
| FYTD | 0.06% | 3.78% | 8.22% | 12.71% | 17.96% |
| 1 Year | 0.12% | 6.62% | 13.90% | 21.07% | 31.11% |
| 5 Years p.a. | n/a | n/a | n/a | n/a | n/a |
| 10 Years p.a. | n/a | n/a | n/a | n/a | n/a |
| Funds managed ($m) | 9.18 | 20.72 | 158.65 | 151.24 | 25.07 |
*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% | 0.70% | 1.35% | 1.94% | 2.53% |
| FYTD | 0.07% | 4.14% | 9.16% | 14.05% | 19.81% |
| 1 Year | 0.15% | 7.72% | 15.60% | 23.88% | 35.41% |
| 5 Years p.a. | 1.50% | 5.92% | 8.33% | 10.34% | 12.60% |
| 10 Years p.a. | 2.35% | 6.54% | n/a | 10.02% | 11.30% |
| Funds managed ($m) | 103.81 | 598.84 | 1,603.46 | 1,063.83 | 113.03 |
**The Conservative Growth Income Stream option commenced on 1 December 2013.
Market overview
In the US, on March 11 President Biden formalized the American Rescue Plan Act of 2021, a $1.9 trillion COVID-19 relief package, which includes a third round of direct stimulus payments to households, worth $1,400 per person (for eligible households). The package also increases the size and scope of the Child Tax Credit, a major effort to reduce child poverty, and provides $350 billion in support payments to state and local governments.
Back at home, March saw the end of Australia’s JobKeeper wage subsidy. Despite concerns that the removal of the stimulus may result in some job losses over the next couple of months, Australia’s unemployment rate has been on a downward trend, and fell to 5.6%* in March (which is only 0.4% higher than in March 2020). Australia recorded the addition of 70,700 jobs in March 2021, following the 89,100 added in February. Most hiring and employment indicators are well above pre-pandemic levels, suggesting that unemployment should continue to fall over the rest of 2021.
Sources: FactSet, Frontier Advisors, Citigroup and JP Morgan. The investment market returns represented above are not Cbus asset class returns. They are returns for each market as measured by standard market indices. More information on these market indices can be found in the Glossary. For unhedged international shares and market shares, when the Australian dollar falls against currencies in major share markets, and there is no currency hedging, international market returns in Australian dollar terms are higher.
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 31/3/2021 | Growth (Cbus MySuper) |
|---|---|
| Australian shares | 22.60% |
| Global market shares | 27.01% |
| Emerging market shares | 6.49% |
| Private equity | 2.75% |
| Alternative growth | 1.54% |
| Infrastructure | 11.02% |
| Property | 10.71% |
| Mid-risk alternatives | 6.10% |
| Fixed interest | 6.86% |
| Cash | 4.93% |
| Growth / Defensive allocation split | 74.30% / 25.70% |
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.