Fund performance
During the September quarter, our default Growth (MySuper) investment option returned 3.29% and over the ten years to 30 September 2024, the option has returned 7.88%, making us one of the top performing super funds over the long term.*
Investment returns for the Financial Year to Date (FYTD) period have been driven largely by Australian shares, global shares and bonds, which have performed strongly since 1 July, particularly Australian shares which are up almost 8%.**
Market update
Global equity markets experienced volatility during the September quarter, including sharp declines in early August.
These falls were due to fears of a recession in the US with markets racing to price in rate cuts. Indeed, the US Federal Reserve (Fed) cut rates by 50 basis points in September, as the central bank felt confident inflation is in check.
Most equity markets have continued their very strong performance from FY24 into FY25 to date, more than recovering their losses from early-August 2024 and many have gone on to subsequently posted all-time highs, with the exception of Japan (where the August sell-off began), which remains negative, FYTD.
In Australia, CPI data for the June quarter (released in July) brought some relief as it showed that underlying inflation had eased slightly, rather than reaccelerating as had been feared. As such, the Reserve Bank of Australia (RBA) kept rates on hold throughout the September quarter.
Interest rates in the US have been lowered as a response to cooling inflation
* Investment performance is based on the crediting rate, which is the return 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 median has been taken from the median balanced investment option return in the SuperRatings FCRS SR50 Balanced (60-76) Index, for the period ending 30 September 2024. SuperRatings is a rating agency that collects information from super funds to enable performance comparisons – visit www.superratings.com.au for details of its rating criteria.
** Source: FactSet and S&P/ASX 300 index.
Performance update
Transition to retirement investment options
View our latest TTR investment option performance.
Outlook
As financial markets continue to watch inflation and interest rates closely, volatility may remain elevated. Although there are positives, investors will no doubt be watching closely for any signs of further weakness – particularly in the US – over the coming months.
Investment spotlight – 185 Wharf St, Brisbane
We invest in high-quality, sustainable property assets that can aid in generating strong long-term returns*, diversify our portfolios and create jobs in the construction industry. In September, Cbus Property** announced a new residential tower in Brisbane – 185 Wharf St which will feature 125 residences over 30 levels and is earmarked for completion in 2027.
Located in the vibrant inner-city pocket of Spring Hill, 185 Wharf St is targeting a 5 Star Green Star rating under Green Star Buildings – the Green Building Council of Australia’s (GBCA’s) most rigorous rating tool to date. The Green Star Apartments Pathway aims to set new standards for energy efficiency, air quality, access to natural daylight, and thermal and acoustic comfort, while also enhancing urban resilience. And, by purchasing an apartment in a future Green Star building, potential residents are eligible to access green home loans, providing financial incentives for sustainable living.
As a supporting partner of the GBCA Future Homes program, Cbus Property is helping to shape the future of sustainable residential development, integrating advanced green building principles into the design of 185 Wharf St, Cbus Property has also collaborated with the GBCA to develop a tailored Green Star Buildings certification process for apartments.
185 Wharf St’s design prioritises natural light and fresh air, focusing on indoor-outdoor living and abundant natural ventilation to reduce energy consumption and create a comfortable and healthy environment. The building’s common areas will be powered by renewable energy from rooftop solar panels. All apartments will feature induction cooktops to reduce indoor air pollutants and eliminate greenhouse gas emissions as part of Cbus Property’s fully electric, net-zero operational strategy.
The project’s holistic approach to sustainability extends beyond environmental impact, offering a range of communal amenities – including private dining spaces, landscaped gardens, a swimming pool, spa, gymnasium, shared workspaces and dedicated bike storage – all designed to foster community engagement and promote healthy, active living.
Although the first residents of 185 Wharf St won’t move in until 2027, the display suite is now open, presales have commenced, and we’re proud to showcase another exemplary Cbus Property that’s testing and refining best practice benchmarks as it works continually to build a sustainable tomorrow by creating buildings of the future today.
* Since inception to 30 June 2024. The Growth (MySuper) investment option has delivered an average annual return of 8.87%. The return is based on the crediting rate, which is the return 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.
** 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.
Cbus Property investments are part of the property asset class in the High Growth, Growth Plus, Growth, Conservative Growth, Conservative and Property investment options and these returns form part of the crediting rates allocated to accounts invested in these options.
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) option actual allocation
Figures are subject to rounding. Actual asset allocation is current as at 30 September 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.
Other articles you may like
EOFY June 24 Investment update
With Cbus Super celebrating its 40th anniversary this year, we are pleased to reflect on the strong long term investment outcomes we have generated for our members.
Understanding investment basics
The investment decisions you make today can make a big difference to the amount of super you retire with.
Strategic Asset Allocation update
At Cbus, we offer a range of investment options to suit our members goals, time frames and their preferred levels of risk and we invest across a wide range of asset classes including shares.