Cbus builds in-house investment capability for the future

29 August 2016

Cbus Super is moving to rapidly expand its in-house investment capability, targeting an increase in its investment teams from 34 to 59 people over this financial year with roles available in both Sydney and Melbourne.

The Cbus Board recently approved the new investment strategy which addresses the future challenges of investing a growing pool of assets and capturing the advantages of scale for members.  The new strategy will ensure that Cbus continues to deliver strong returns for its members as the Fund is expected to grow from $34 billion to over $50 billion in the next three to five years.

Aligning investing with our members’ needs and Cbus’ philosophy has driven the development of the new investment strategy and model. Extracting maximum value and returns while minimising outflows, especially through fees, are key measures that will be used to assess future investment opportunities.

The three overarching investment themes that now drive our decisions and future direction are taking advantage of our long-term investment horizon, improving returns and investment opportunities by taking a total portfolio approach and targeting investments that have a positive impact on the real economy, particularly through the built environment.

Kristian Fok, Cbus Executive Manager Investment Strategy, said “The recent Blue Ribbon Award from Smart Investor for the best balanced super fund is recognition that Cbus has been on the right track in delivering strong investment outcomes for members. Our new model is a clear path to ensure we continue to deliver for our members into the future in a way that can also make a positive contribution to the economy and society.

“While retaining our current external managers, we’re focussing on the significant direct investment opportunities for Cbus in greenfield infrastructure and small to medium-size brownfield assets. Leveraging our unique value proposition gives us the ability to capture value at many points in greenfield developments through origination, execution and management of infrastructure investments. Internal Australian and international equities management also offers the opportunity to build capabilities to manage specific strategies that complement our existing managers,” said Mr Fok.

To ensure the new model is appropriately implemented and supported, resources will also be added to existing expertise in investment legal and compliance, middle office operations, communications, risk management and performance reporting.

Trish Donohue, Cbus Executive Manager Investment Management, said “The fund is on its next exciting journey of growth and change, requiring new ways of investing. Our new model will provide some great opportunities and challenges for the team over the next few years.”