Monthly highlights

  • The Growth (Cbus MySuper) option returned 1.82% for the month of November 2019 and 13.66% for the 12 months ending 30 November 2019.
  • The Australian share market continued the strong performance seen throughout most of 2019, ending the month up 3.18%. Major global share markets mostly mirrored the returns of the Australian market, gaining 4.39% in November on an unhedged basis and 2.86% on a hedged basis. 
  • The Reserve Bank of Australia left the cash rate unchanged at 0.75% in its November Meeting.

*This estimate is based on inflation data for the 10 years to 30 September 2019 as inflation data is only available quarterly. It is based on a weighted average of the investment performance objective over the past 10 years.

**SuperRatings is a ratings agency that collects information from superannuation funds to enable performance comparisons. The SR 50 Balanced Survey includes investment options that are broadly similar to the Growth (Cbus MySuper) option, as these funds are all diversified with an allocation to growth assets of between 60% and 76%. SuperRatings data is for November 2019 and was reported on 19 December 2019.

 

 

Growth (Cbus MySuper) investment objective

From November 2015, a return objective of at least 3.25% p.a. above the rate of inflation, after investment fees and tax over a 10 year period, expected to be achieved at least 75% of the time, with a likelihood of a negative annual return being 3 in every 20 years.

 

Over the past 10 years, the Growth (Cbus MySuper) option has outperformed its investment objective and outperformed the SuperRatings SR50 Balanced median.

Super Investment Option Performance (crediting rate)

 

  Cash Savings Conservative Conservative Growth* Growth (Cbus MySuper) High Growth
1 month 0.07%  0.73% 1.29% 1.82% 2.63%
FYTD 0.40% 2.46% 3.51% 4.44% 5.93%
1 year 1.38%  8.97%  11.50%  13.66%  17.51%
5 years p.a. 1.63%  5.67% n/a  9.23%  10.58%
10 years p.a. 2.41%  6.22% n/a  9.01%  9.75%
Funds managed ($m) 552.26 984.98 365.23 47,446.12 2,868.10

*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
0.07% 0.73% 1.30% 1.82% 2.63%
FYTD 0.43% 2.49% 3.55% 4.44% 5.95%
1 year
1.45%  9.04%  11.63%  14.02%  17.61%
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) 9.61 26.30 205.27 176.56 26.42

*These options commenced on 1 July 2017.  

 

Fully Retired Option Performance (crediting rate)

 

  Cash Savings Conservative Conservative Growth* Growth High Growth
1 month 0.09%  0.84% 1.40% 2.01% 2.90%
FYTD 0.50% 2.82% 3.94% 5.01% 6.63%
1 year 1.73%  10.34%  13.32%  15.85%  19.99%
5 year p.a 2.03%  6.49%  8.58%  10.41% 11.89%
10 year p.a 2.92% 7.03% n/a 10.08% 10.92%
Funds managed ($m) 55.50 554.18 1,308.85 1,009.54 91.03

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

 

Market overview

Share markets globally have continued their run of strong performance that began at the start of 2019, providing returns of more than 20% since the start of the year on an unhedged basis. The US’s S&P 500 index and CAC 40 in France each saw gains of over 3% in November at 3.40% and 3.06% respectively. Most of the other major share markets saw gains of between 1% and 3% over the month, with the exception being China’s Shanghai Composite index falling 1.95% as the trade war continues to negatively impact the Chinese economy.

Australian shares returned 3.18% for the month of November, continuing the already impressive year as the S&P/ASX300 Accumulation index has since increased by 26% from the start of 2019. Many sectors in the Australian market saw significant gains of over 8%, being Consumer staples with 8.10%, Healthcare with 8.81% and Information Technology jumping 10.55%. The Energy and Telecommunications sectors were not far behind, posting returns of 7.29% and 7.22% respectively. However, the Financial sector which makes up more than 25% of the Australian share market lost ground over the month with a drop of -2.01%. This was largely due to the allegations that Westpac has allowed more than 23 million transactions that breached anti-money laundering and counter-terrorism finance laws, prompting a sell off which saw shares in the bank drop by 13% during November.

After weak performance in October, Australian and global bonds saw returns of 0.86% and 0.10% respectively in November.

The Australian dollar edged up slightly against the US dollar during the month, finishing November at $0.683 compared to $0.679 at the end of October.

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.

 

Source: FactSet. Monthly sector returns are represented by the S&P/ASX 300 (Accumulation) sectors for the month ending 30 November 2019.

Asset allocation

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.

 

Actual allocation 30/11/2019 Growth (Cbus MySuper)
Australian shares 27.35%
Global shares 20.92%
Emerging market shares 4.95%
Private equity 3.13%
Absolute return 1.87%
Infrastructure 10.74%
Property 10.95%
Alternative debt 4.12%
Fixed interest 11.30%
Cash 4.69%
Growth / Defensive allocation split 71.10% / 28.90%  

Note: Growth assets include Australian Shares, International Shares, Private Equity, Absolute Return, 50% of Infrastructure, 50% of Property and 50% of Alternative Debt. Defensive assets include Cash, Fixed Interest, 50% of Infrastructure, 50% of Property and 50% of Alternative Debt.

 

 

Figures are subject to rounding. Actual asset allocation is current as at 31 October 2019. 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 Trustee Operating Cost and taxes. Excludes account keeping administration fees.

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.