Cbus has announced a return of 8.35 per cent for its Growth (MySuper) investment option for the financial year 2024.
The option has returned 7.73 per cent over the decade to June 2024.
Meanwhile, Cbus’ High Growth investment option delivered a 10.85 per cent return and Indexed Diversified returned 11.42 per cent.
Additionally, its Australian Shares option returned 11.41 per cent and Overseas Shares returned 15.72 per cent.
Unpacking the results, the $94 billion fund explained its default option maintains a diversified portfolio of assets rather than being concentrated in listed shares, a sector which helped drive robust returns for funds with high exposures to these assets.
“Our allocations to high-quality unlisted infrastructure and property portfolios, which are higher than most peers, remains a key source of outperformance over the long-term, with each portfolio returning circa 10 per cent per annum for the 10 years to 30 June 2024,” the fund said.
“In FY24, the strength of shares – particularly US shares – meant that funds with a concentrated exposure to shares generally outperformed those with a more diversified exposure to assets.”
Cbus chief investment officer Brett Chatfield said the fund’s performance over the last financial year was “driven by strength in Australian and overseas share markets, particularly US shares”, as inflation eased and global growth remained “solid”.
“Strong returns from our global credit investments and infrastructure assets have also contributed to our one-year result,” he said.
Looking at property, he noted short-term results have been challenged since the pandemic, although the fund believes property values are now close to stabilising.
“Our long-term focus on owning and developing high-quality assets means our portfolio remains well positioned for a market recovery,” he said.
“Across the financial year, Cbus Property has not been immune to these headwinds, but it has shown relative market resilience thanks to its well-located premium portfolio.
“Cbus Property is continuing to manage its significant pipeline of work developing property around Australia that also creates jobs for members and helps to boost residential property supply.”
On Wednesday, Australia’s largest super fund, AustralianSuper, also explained it had previously held a defensive position in its portfolios, and repositioned in the second half of the year to make the most of share market gains by moving to increase equity holdings.
The fund returned 8.46 per cent from its default balanced option in FY24.
