Cbus hits $100 billion in member assets after double digit returns
28 January 2025
MEDIA RELEASE
Cbus has delivered another set of strong investment returns in 2024 as assets increased to over $100 billion in members’ retirement savings.
The default Growth (MySuper) investment option – in which the majority of members are invested – generated returns of 10.77%i for 2024. The Fund’s second largest option, the High Growth investment option, returned 13.78%i for the year.
For its default option, Cbus remains one of the top 5 best performing funds over the 10 and 20 years to 31 December 2024ii. The Fund has generated strong long-term returns of 7.83% p.a. and 7.53% p.a. over 10 and 20 years, respectively.
Cbus Super Chief Investment Officer Brett Chatfield said reaching the $100 billion milestone was a huge recognition of the longevity and trust that members have put in Cbus over its 40-year history.
“Our number one priority is delivering strong investment returns so our members can enjoy the retirement they deserve. We’re pleased to deliver double digit growth for our members for the 2024 calendar year and we thank our over 900,000 members for helping us reach the significant milestone of $100 billion.”
“Investment returns have been driven largely by the global and Australian share markets that have both delivered very strong double-digit returns. As well as solid contributions from global credit and infrastructure investments that both delivered high single digit returns over the year.”
Mr Chatfield said that he remains constructive on the outlook for equities and retains a moderate overweight position.
“While valuations are elevated in certain markets, which has tempered our overall position somewhat, we remain positive on the growth outlook and are expressing some of the exposure via emerging markets. Emerging markets should benefit from an improvement in global growth and also have reasonably attractive valuations. We also expect private markets generally to perform well this year, and we believe there has been a stabilising in commercial real estate and remain confident in the long-term outlook.”
On the US, Mr Chatfield said “Donald Trump has entered the White House with a full policy agenda that will likely impact the economy and markets, and the Republican sweep of Congress will make his job easier. While many of President Trump’s policy priorities are well known, such as tariffs, tax cuts, deregulation and reduced migration, there remains much uncertainty around the extent to which these policies will be enacted. If some of Trump’s proposed policies were implemented in full (particularly tariffs and large-scale deportations), they would pose risks to both growth and inflation.
“However, as in Trump’s first term, it’s likely that some of the commentary is dialled back and open to negotiation. In that case, negative growth effects could be offset by the positive impact of tax cuts and deregulation. Nevertheless, if growth remains strong, pressure will still remain on inflation and interest rates, and the potential for ‘higher-for-longer’ US interest rates is likely to be a key factor for markets over the next 12-18 months.”
Following on from an active 2024, the infrastructure asset class is expected to remain strong in 2025 with a positive return outlook driven by continued demand for quality assets and desire for existing asset owners to recycle their respective portfolios.
Globally, there continues to be a significant demand for digital assets, including data centres, and assets aligned with the energy transition while activity levels concerning transport assets (primarily airports, seaports, and toll roads) also remain high.
Mr Chatfield said the key focus for Cbus will be to continue to deploy in a discerning manner and to, where possible, work with our partners to remain highly selective and avoid overly competitive processes.
“There will continue to be an emphasis on diversifying the portfolio geographically and to complement existing strong exposure to assets with core risk profiles by continuing to sensibly introduce core-plus and value-add exposures. In addition to deployment, Cbus will continue to assess the portfolio and rationalise exposures in-line with strategy and to maximise overall return outcomes for members.”
Mr Chatfield also said investments in property were continuing to deliver jobs for members and new developments across the nation.
“Through Cbus Property we’ve taken the opportunity to deploy capital for acquisitions and new construction in the commercial sector while it has been experiencing cyclical weakness to add to our long-term high-quality portfolio.
“We also have a strong pipeline of residential projects, adding much needed supply to markets like Sydney, Brisbane, and Melbourne.
“Overall, our property portfolio has continued to outperform the industry benchmark and we are well placed to make the most of an improving outlook.”
The investment team has seen several high profile appointments over the last two years including Leigh Gavin (Head of Portfolio Strategies) who is highly experienced and was previously at AustralianSuper, LUCRF, and Frontier Advisers, industry veteran Justin Pascoe (Head of Portfolio Construction) who has worked at AustralianSuper, Goldman Sachs, State Street, and spent eight years as the CIO at VFMC, Jordan Kraiten who was promoted to Head of Private Markets & Infrastructure in 2024 and previously spent over 12 years at HostPlus, and property expert Nikki Panagopoulos (Senior Investment Director, Property) who joined from Australian Unity.
In 2024, Head of Debt & Alternatives, Linda Cunningham, was also recognised with the Industry Thought Leader of the Year award by Super Review.
Mr Chatfield said, “we have an exceptional investment team in place that should ensure that over the coming decade we continue to deliver the superior returns we have in the last decade”.
Media enquiries:
Email: media@cbussuper.com.au
Phone: +61 3 9100 4930
All figures as at 30 June 2024 unless otherwise noted.
This information is about Cbus Super. It doesn’t account for your specific needs. Please consider your financial position, objectives and requirements before making financial decisions. Read the relevant Product Disclosure Statement (PDS) and Target Market Determination to decide if Cbus Super is right for you. Call 1300 361 784 or visit cbussuper.com.au.
Cbus is the leading Industry Super Fund representing those that help build, maintain and shape Australia. As one of Australia’s largest super funds, we provide superannuation and income stream accounts to more than 920,000 members (as at 30 June 2024) and we manage $100 billion of our members’ money (as 27 January 2025). Our members include workers and retirees, their families and employers. As of April 2022, Cbus merged with Media Super and offers Media Super products. In May 2023 Cbus Super successfully completed its merger with EISS Super, establishing the Fund as the leading fund for energy and electrical workers in Australia.
Issued January 2024, United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 as Trustee for Construction and Building Unions Superannuation Fund (Cbus and/or Cbus Super) ABN 75 493 363 262.
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i Investment performance is based on 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.
ii Taken from the SuperRatings FCRS SR50 Balanced (60-76) Index (December 2024). The default Growth (MySuper) investment option obtained a top 5 performance ranking over 10 and 20 years for the period ending 31 December 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. Past performance is not a reliable indicator of future performance.
Cbus Property Pty Ltd is a wholly-owned entity of Cbus Super and is responsible for the development and management of a portfolio of Cbus Super’s property investments.