Cbus targets growth with launch of new investment options
Cbus Super will launch six new investment options next month as the fund remains focussed on its ambition to grow to $150 billion.
Cbus Super’s existing menu of five investment options will grow to 11 with the addition of a new Growth Plus option, a low cost Indexed Diversified option, as well as options for Overseas Shares, Australian Shares, Property and Diversified Fixed Interest.
Cbus Super Chief Investment Officer Kristian Fok said Cbus was launching the new options with the merger and corporate superannuation markets specifically in mind, “Our default Growth MySuper option is a top quartile product and we continue to view it as a superior product designed to suit most members*.
“We do see that a market, particularly in the corporate space, is there for a wider range of choice options.
“That’s why we have spent the last twelve months carefully constructing and testing our new menu of options for members.”
Mr Fok said the new Growth Plus pre-mixed option sits between the High Growth investment option and the Growth MySuper investment option in terms of its risk and return profile, “Growth Plus may suit members seeking higher returns over the long term and can ride out short term fluctuations.
“While the option has a larger allocation to growth assets compared to our default option, and thus might suit members with a higher risk profile, it is still broadly diversified across asset classes and underlying strategies.”
Members will also be able to access a low-cost Indexed Diversified option. While Cbus remains strongly committed to active management, the introduction of the indexed option reflects a degree of growing demand in the market for very low-cost passive products.
“The recent volatility that we have seen in markets through Covid-19 highlights that index investing is not without risk,” Mr Fok said.
“We view the risk profile of this option as sitting at the riskier end of our current suite, so obviously it is not for everyone.”
The new options are due to be launched in mid-February.
Gerry Costigan, 0418 512 087 or firstname.lastname@example.org
*The Cbus default Growth MySuper option obtained top quartile performance ranking over 1, 3, 5, 7 and 10 years from the SuperRatings FCRS SR50 Balanced (60-76) Index Survey, for the period ending 30 June 2021. Past performance is not a reliable indicator of future performance.
United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 as Trustee for the Construction and Building Unions Superannuation Fund ABN 75 493 363 262 (Cbus and /or Cbus Super). Refer to Cbus Product Disclosure Statement, Target Market Determination and Financial Services Guide for more information.
Cbus is the leading Industry Super Fund for the building, construction and allied industries. As one of Australia’s largest super funds, we provide superannuation and income stream accounts to more than 778,000 members and we manage over $67 billion of our members’ money (as at 31 October 2021). Our members include workers and retirees, their families and employers.