The last month has seen a spike in global financial market volatility and a short, fast-paced selloff in global equities, most of which was quickly reversed.
The volatility appeared to be triggered in part by a recalibration of expectations for interest rates in the US and Japan, with markets pricing in a potential for more rate rises in Japan and a faster and deeper monetary easing cycle in the US. Overall, while data continue to point to moderating inflation and positive growth across most economies (i.e. a so-called soft landing), the recent market volatility demonstrates that the outlook remains uncertain and markets can be vulnerable to changes in data and expectations.
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.
See below for the Growth (MySuper) option actual allocation.
| Actual allocation 31/7/2024 | Growth (MySuper) |
|---|---|
| Australian shares | 23.82% |
| Global shares | 28.73% |
| Emerging market shares | 3.48% |
| Private equity | 2.37% |
| Alternatives* | 2.53% |
| Infrastructure | 13.37% |
| Property | 9.10% |
| Global credit | 6.66% |
| Australian fixed interest | 3.57% |
| Global fixed interest | 3.07% |
| Cash | 3.30% |
| Growth / defensive allocation split | 75.49% / 24.51% |
Note: Growth assets include Australian shares, global shares, emerging market shares, private equity, alternatives, 50% of infrastructure, 50% of property and 50% of global credit. Defensive assets include cash, fixed interest, 50% of property, 50% of infrastructure and 50% of global credit.
* Prior to 31 July 2024 this asset class was known as Alternative Growth.
Figures are subject to rounding. Actual asset allocation is current as at 31 July 2024. 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 (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.
Our video library showcases and highlights some of the ways in which we invest your super.
Watch our videosThe potential long-term impacts of switching investment options
Learn moreWe believe investing responsibly is important for our members’ long-term returns and their quality of life in retirement.
Read more