Fund performance
During the December quarter, our default Growth (MySuper) investment option returned 2.19%* as assets increased to over $100 billion in members’ retirement savings. Over the 2024 calendar year, our Growth (MySuper) investment option returned 10.77%.* This result contributes to our strong long-term results which are 7.83%, 8.07% and 7.53%* (p.a.) over 10, 15 and 20 years respectively, making us one of the top performing super funds over the long term.**
Investment returns for the December quarter have been driven largely by our private market investments, which were all in positive territory with our private equity, infrastructure and even property investments up 3.2%, 1.8% and 0.2% respectively over the quarter. Enhanced income was up 1.5%, but most other asset classes were in negative territory.
Market update
Global share markets made steady, if lacklustre, gains of only 1.4% in local currency terms during the three months to December, after a volatile September quarter.
It was the depreciation of the Australian currency (down over 10% against its US counterpart) that primarily drove global share market gains above 11% in Australian dollar terms. The US dollar started to appreciate from early October as markets began to price in a Trump election victory and the expectation that his trade and immigration policies are likely to be inflationary. A potential trade war with China also has knock-on effects for the commodities outlook and that contributed to the Australian dollar depreciation against most major currencies over the quarter.
Domestically, GDP for the September quarter was released just before the RBA’s December Board meeting. Growth had slumped to 0.8% year-on-year, confirming that Australia is in the most prolonged economic slump since the 1990/91 recession. The Reserve Bank subsequently signaled that it was edging closer to cutting interest rates, with a cut now widely anticipated during the first half of 2025 – putting further downward pressure on our currency.
In more positive news for Australia’s economic prospects, released subsequent to the year-end, jobs vacancies were up in November. This was the first increase since May 2022. Retail turnover also rose, by 0.8%, in November (seasonally adjusted), boosted by Black Friday sales.
Australian gross domestic product (GDP) data (quarter-on-quarter and year-on-year)
* As at 31 December 2024. The return for the Growth (MySuper) investment option is based on the crediting rate, which is returns minus investment fees, 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 Growth (MySuper) investment option obtained a top quartile performance ranking over 10, 15 and 20 year periods from the SuperRatings FCRS SR50 Balanced (60-76) Index, for the period ending 31 December 2024. SuperRatings is a rating agency that collects information from super funds to enable performance comparisons – visit superratings.com.au for details of its rating criteria.
Performance update
Transition to retirement investment options
View our latest TTR investment option performance.
Outlook
We are positioned for shares to continue to outperform into 2025. Along with the potential for a turnaround in commercial real estate, short duration floating rate credit globally is expected to deliver solid returns.
Cbus Property, adapting to a net zero future
As we move closer towards 2050 and a net zero future, the property market is beginning to favour low-carbon buildings. In response, Cbus Property*** is adapting, and incorporating the latest in sustainable design, products and materials, and upgrading existing buildings, and adopting new innovations to decarbonise their buildings operations and materials where possible.
435 Bourke Street – incorporating a world first solar skin technology
Poised to redefine Melbourne’s skyline, 435 Bourke Street was designed to meet the changing demands of the modern workforce. Crafted by highly acclaimed architecture firm Bates Smart, 435 Bourke Street will also feature an innovative “solar skin” façade. The solar skin system is made up of translucent, vertical glass photovoltaic panels which not only protect the interior from the direct heat of the sun, but twill also help generate up to 20 per cent of the base building’s electricity needs on-site.
Rising 48 levels high, 435 Bourke Street will offer around 62,000 square metres of premium office space, complemented by 1,300 square metres of retail space, 116 car parks, and a lush sky garden. The building’s design integrates landscaped terraces and open-air spaces, creating a vertical village for more than 5,500 workers.
Leading the way in environmentally sustainable building practices
Targeting a 6 star Green Star Buildings rating, a NABERS Energy 5.5 star rating (with aspirations to achieve 6 stars), and Platinum WELL certification, 435 Bourke Street also features low carbon concrete and low carbon reinforcement steel. The construction site is the first in Victoria to use hydro-treated vegetable oil (HVO100) renewable diesel to power the tower cranes, which is expected to provide a 90 per cent reduction in carbon emissions compared to regular diesel fuel.
In addition, 435 Bourke Street is modelled to achieve a 45 per cent reduction in embodied carbon when compared to a benchmark building. Embodied carbon includes emissions from the manufacturing, construction, renovation, and demolition of buildings.
All-electric cooking
Cbus Property continues to champion electric cooking as part of its commitment to decarbonise buildings. In FY23, they joined the Global Cooksafe Coalition as a foundation partner and are looking to achieve fossil-fuel-free cooking in new buildings by 2030 and in existing buildings by 2040.
Cbus Property is also collaborating with award-winning restaurateur, Chris Lucas, to design two new signature dining experiences with all-electric cooking at 435 Bourke Street. The new restaurants will use some of the most advanced hospitality technology available, such as electric woks, demonstrating how our industry can participate and lead as we transition to a more environmentally sustainable world.
Banner image is an artist impression.
*** Cbus Property Pty Ltd is a wholly owned entity of United Super Pty Ltd and is responsible for the development and management of a portfolio of Cbus Super’s property investments.
Asset allocation
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) investment option allocation:
Figures are subject to rounding. Actual asset allocation is current as at 31 December 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.
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