Monthly highlights

  • The Growth (Cbus MySuper) option returned -1.05% for the month of September and 17.77% for the 12 months ending 30 September 2021.
  • Australian and Global shares* delivered a return of -1.89% and -3.64% (hedged) respectively for the month of September 2021.
  • The Reserve Bank of Australia left the cash rate unchanged at 0.10% in its meeting on 7 September. 

*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 (Cbus MySuper) High Growth
1 month 0.01% -0.72% -0.90% -1.05% -1.70%
FYTD  0.05% 0.72% 0.94% 1.35% 1.49%
1 Year 0.16% 6.13% 11.49% 17.77% 23.49%
5 Years p.a. 1.05% 5.13% n/a 9.35% 11.43%
10 Years p.a. 1.73% 6.07% n/a 10.18% 11.98%
Funds managed ($m) 925.55 1,053.05 773.26 55,163.28 4,371.85

*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 0.01% -0.72% -0.90% -1.06% -1.70%
FYTD  0.05% 0.72% 0.94% 1.33% 1.49%
1 Year 0.17% 6.14% 11.51% 17.48% 23.55%
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) 8.89 16.51 151.76 149.36 23.98

*These options commenced on 1 July 2017. 

Fully Retired Option Performance (crediting rate)

 

  Cash Savings Conservative Conservative Growth* Growth High Growth
1 month 0.02% -0.79% -0.95% -1.09% -1.73%
FYTD  0.06% 0.84% 1.13% 1.61% 1.89%
1 Year 0.19% 6.54% 12.91% 19.53% 26.40%
5 Years p.a. 1.31% 5.76% 8.26% 10.41% 12.70%
10 Years p.a. 2.12% 6.87% n/a 11.38% 13.38%
Funds managed ($m) 89.08 593.30 1,827.25 1,260.67 147.88

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

Market overview

September has a history for being one of the weakest performing months for equity markets, and this year was no different. After continuous months of gains, the US stock market saw the largest decline since the initial Covid-induced fall back in March 2020. Overall, the US S&P500 index fell 4.8% over September. However, following that period of weakness and increased volatility, markets rebounded and heading into late October the S&P500 has set fresh record highs.

Since the onset of Covid, the US Federal Reserve has been buying $120 billion in bonds each month and holding the Federal Funds interest rate near zero. This makes borrowing cheap and keeps money flowing through the economy, supporting demand and speeding up the recovery. The Fed is now moving closer to paring back these asset purchases; a formal announcement of a plan is expected as soon as early November. 

Companies all around the world, but especially in the US, are battling supply chain shortages which are causing operational disruptions; forcing pricing increases for customers. This is causing wide-spread inflationary pressure as supply chain bottlenecks and labour shortages push up prices and restrict the pace of economic growth in some areas.

Despite two of Australia’s largest cities being in tough lockdowns for the duration of September, the outlook remained somewhat optimistic for the Australian share market as the economic implications of the lockdowns are expected to be short-lived, especially with rising vaccination rates. As an example, despite the lock-downs consumer confidence improved modestly in September.

In China economic growth slowed to just 0.2% from Q2 to Q3, curtailed by disruptions due to covid outbreaks and related lockdowns, as well as blackouts and energy shortages. Regulatory uncertainty also remains high, and there are ongoing worries over the fate of Evergrande, the second largest property developer in China, which is facing insolvency.

Emerging market (EM) share markets also declined in September, weighed down by global market concerns as well as the headwind of the expectation of policy withdrawal, China growth concerns and higher energy prices (with some EM economies a net importer). 

Coming out of its summer period, Europe has greatly benefited from the widespread easing of restrictions as most large eurozone countries have now fully vaccinated around 75% of their populations. Forecasts for Q3 GDP growth are around 2.0% when compared to Q2, a strong rate of growth and similar to the previous quarter.

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 30/09/2021 Growth (Cbus MySuper)
Australian shares 22.62%
Global shares 25.63%
Emerging market shares 6.31%
Private equity 2.44%
Alternative growth 2.06%
Infrastructure 11.52%
Property 10.22%
Global Credit 7.15%
Fixed interest 5.69%
Cash 6.36%
Growth / Defensive allocation split 73.51% / 26.49%

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.