The September quarter saw significant developments in both local and global investment markets. Share markets grew steadily, and we saw interest rate cuts both here and in the United States.
Share markets started the quarter well in July, as the tariff situation in the United States (US) became clearer. In fact, the US reached deals on tariffs with major trading partners that included Japan, Vietnam, the Philippines and the European Union.
Weak US employment data released in early August led to expectations that the US Federal Reserve (the Fed) would start cutting interest rates again. These predictions proved to be accurate, with the Fed cutting rates for the first time in 2025. The thought of lower interest rates helped boost share markets throughout August and into September, with US and global share markets landing in strongly at quarter end.
The US federal funds rate over time
Here in Australia, key economic signs were promising, albeit somewhat subdued. Data released in September showed that the Australian economy grew modestly in the year to 30 June 2025. And labour force data showed that the unemployment rate remained steady at 4.2% (seasonally adjusted).
The Reserve Bank of Australia (RBA) surprised investment markets in July by keeping the cash rate unchanged at 3.85%, but then lowered it to 3.60% in August. Data released during the quarter supported this as it showed inflation is now close to the middle of the target range. Nonetheless, the RBA kept rates on hold at their September meeting.
* As at 30 September 2025. Investment performance is based on investment return minus investment fees and costs, transaction costs and investment-related taxes and until 31 January 2020, the percentage-based administration fee. Excludes fees and costs that are deducted directly from members’ accounts. Past performance is not a reliable indicator of future performance.
** The median has been taken from the median balanced investment options investment return in the SuperRatings FCRS SR Balanced (60-76) Index, for the period ending 30 September 2025. SuperRatings is a ratings agency that collects information from super funds to enable performance comparisons – visit superratings.com.au for details of its rating criteria.
View our latest TTR investment option performance.
What’s the global outlook?
Weak employment data in the US remains a concern that could cloud the economic horizon. However, lower interest rates both here and overseas in the US and Europe should support economic growth over the next 12 months.
What does this mean for you?
If the global economy can maintain positive momentum for the rest of this year, the outlook for 2026 looks reasonably bright. Our portfolios have a sizable weight to infrastructure and property. This diversification is likely to offer our portfolios greater resilience if shares and bonds start to sell off.
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The Strategic Asset Allocation (SAA) provides guidance for the portfolio allocation over the medium to long term (10+ years) and is reviewed annually. The SAA for all investment options can be found on the following pages:
The actual asset allocations at any point in time may differ from their respective targets due to market movements, cash flows and other activities.
Actual asset allocations are regularly monitored by the investment team and rebalanced back towards target, or in line with our views on opportunities and risks.
Figures are subject to rounding. Actual asset allocation is current as at 30 September 2025. 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 a big fall in your account 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’ Pre-mixed investment options are broadly diversified across asset classes.
Disclosure
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 and the Target Market Determination to decide whether Cbus is right for you, or contact us for a copy.
