Monthly highlights

  • The Growth (MySuper) option returned 1.10% for the month of March and 7.31% for the 12 months ending 31 March 2022.
  • Australian and Global shares* delivered a return of 6.90% and 2.22% (hedged) respectively for the month of March 2022.
  • The Reserve Bank of Australia left the cash rate unchanged at 0.10% in its March meeting. 

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

Super Investment Option Performance (crediting rate)

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 formually known as Growth (Cbus MySuper).

  High Growth Growth Plus

Growth

(MySuper)

Indexed

Diversified

Conservative

Growth

Conservative
1 month 1.75% 1.30% 1.10% 1.58% 0.22% -0.56%
FYTD  1.62% 0.74% 1.54% 0.07% 0.19% -0.76%
1 Year 8.55% n/a 7.31% n/a 4.21% 2.10%
5 Years p.a. 9.98% n/a 8.22% n/a n/a 4.33%
10 Years p.a. 11.03% n/a 9.46% n/a n/a 5.42%
Funds managed ($m) 4,380.00 1.06     54,577.08 0.63 805.15 1,074.34

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.

 

Overseas

Shares

Australian

Shares

Property

Diversified

Fixed Interest

Cash
1 month -1.96% 5.62% 3.48% -1.83% -0.03%
FYTD -5.48% 4.59% 3.87% -1.68% 0.11%
Funds managed ($m) 0.40 2.29 4.90 2.38 1,102.46

Transition to Retirement Option Performance (crediting rate)

Pre-mixed options:

The Conservative Growth option commenced on 1 July 2017.  Until 14th February 2022, Cash was formally known as Cash Savings.

  High Growth Growth Plus Growth

Indexed

Diversified

Conservative

Growth

Conservative
1 month 1.76% 1.50% 1.15% 1.57% 0.22% -0.56%
FYTD  1.61% -0.06% 1.61% 0.06% 0.19% -0.74%
1 Year 8.55% n/a 7.30% n/a 4.22% 2.13%
5 Years p.a. n/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 n/a
Funds managed ($m) 21.30 0.01 145.22 0.01 139.56 15.14

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.

 

Overseas

Shares

Australian

Shares

Property

Diversified

Fixed Interest

Cash
1 month -2.02% 5.77% 3.73% -1.83% -0.03%
FYTD -5.63% 4.67% 3.76% -1.68% 0.11%
Funds managed ($m) 0.01 0.01 0.01 0.01 8.77

Fully Retired Option Performance (crediting rate)

Pre-mixed options:

The Conservative Growth Income Stream option commenced on 1 December 2013.  Until 14th February 2022, Cash was formally known as Cash Savings.

  High Growth Growth Plus Growth

Indexed

Diversified

Conservative

Growth

Conservative
1 month 2.26% 1.82% 1.49% 1.81% 0.54% -0.51%
FYTD  2.47% 0.62% 2.09% 0.16% 0.62% -0.80%
1 Year 10.12% n/a 8.31% n/a 5.07% 2.08%
5 Years p.a. 11.18% n/a 9.23% n/a 7.23% 4.88%
10 Years p.a. 12.32% n/a 10.58% n/a n/a 6.12%
Funds managed ($m) 143.51 0.76 1,287.72 0.10 1,863.55 582.12

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.

 

Overseas

Shares

Australian

Shares

Property

Diversified

Fixed Interest

Cash
1 month -2.22% 6.24% 4.04% -2.15% -0.03%
FYTD -6.14% 4.99% 3.27% -1.97% 0.14%
Funds managed ($m) 0.01 0.11 0.31 0.10 145.46

Market overview

Investment Environment Overview (current as at 3 May 2022)

The global economy continued to expand at a solid pace over the first few months of 2022. The passing of the major Omicron wave of December/January supported reopening across most major economies, and this largely offset any immediate negative impact from the Ukraine war. Early PMI readings for April were still generally in the 55-60 range across Europe and North America, signalling above-trend rates of growth.

Inflation and wage pressure remain significant though, and this has prompted further tightening of monetary policy. The Fed raised its policy rate by 25bps at its March meeting, and financial markets are anticipating a further 200-250bps of hikes by the end of the calendar year. The RBA is unlikely to tighten so aggressively, but has been pivoting towards rate hikes, with the first now widely anticipated within the next couple of meetings. Tighter policy settings are likely to make for a less favourable environment for growth assets such as equities, especially if the end result is a sharp slowdown in the global economy.

The other major risk occupying the attention of markets at the moment is China's Omicron outbreak and associated lockdowns. This will have a significant near-term impact on Chinese economic growth; the key question is how long this impact will last for? Previous lockdowns in China and other countries have typically seen activity rebound strongly once restrictions are eased. But if prolonged or recurrent lockdowns are needed given China's 'zero-covid' strategy then the recovery may be drawn out. Fortunately, the authorities still have significant scope to stimulate the economy (via both fiscal and monetary policy), and this should support activity over H2.

Asset allocation

The Strategic Asset Allocations for all investment options can be found on the following pages:

The Actual Allocation for the Growth (MySuper) option is shown below.

 

Actual allocation 31/03/2022 Growth (MySuper)
Australian shares 23.32%
Global shares 22.66%
Emerging market shares 6.41%
Private equity 1.98%
Alternative growth 1.05%
Infrastructure 12.13%
Property 12.73%
Global Credit 7.75%
Fixed interest 5.81%
Cash 6.17%
Growth / Defensive allocation split 71.71% / 28.29%

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 (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.