Cbus touts solid returns in the face of volatility

Cbus made public, on Thursday, that its growth investment option yielded a return of 8.95 percent during the 2022–23 fiscal year. As a result, the fund's total member assets under management (AUM) currently stand at $85 billion.

The outcome also raised the fund's moving three-year mean to 7.76 per cent and its average yearly profit since establishment to 8.89 per cent.

Brett Chatfield, the chief investment officer of Cbus, stated that the accomplishment was reached despite ongoing fluctuations in the market.

"The considerable instability that we have witnessed over the past three years has persisted throughout this fiscal year," stated Mr. Chatfield.

The never-ending influx into Ukraine, numerous financial crises in the banking sector, continual elevated worldwide inflation and increasing interest rates, as well as political uncertainties in the United Kingdom and United States markets, have all contributed to the sustained ride of unpredictability in the current year.

Achieving a solid 8.95 percent return for our members is evidence of the dedication put in by our investment teams and the strong base we have established during our previous five-year investment plan.

This fiscal year has brought positive outcomes in various areas such as worldwide and Australian stocks, infrastructure, and credit. Undoubtedly, the real estate industry has faced obstacles, but our exceptional and varied property portfolio has minimized its influence on the overall returns of our portfolio.

According to Mr. Chatfield, the unpredictability is expected to persist, highlighting the importance of considering superannuation as a financial commitment for the future.

"In the past half-year, there has been a higher possibility of a worldwide economic downturn. Despite this, stock markets are still assuming a positive future, so we have taken a cautious approach by reducing our investment in stocks and holding more cash," he stated.

"Two years back, we achieved an exceptional outcome of more than 19 percent, whereas last year nearly all funds experienced a slight downturn in performance. Presently, the results have been consistent with our overall long-term return."

"With the likelihood of increased volatility ahead, it is important for members to keep in mind that changing investment options can lead to significant expenses in the future."

The unpredictable ups and downs of the past few years clearly demonstrate the significance of considering superannuation as a lifelong investment and avoiding excessive reactions to market fluctuations.

Mr Chatfield's statements mirror the sentiments expressed by other Chief Investment Officers of super funds, including Mark Delaney from AustralianSuper, who also emphasized the importance of emphasizing long-term outcomes for members.

Mr. Delaney expressed earlier this week that it is crucial to not prioritize short-term investment returns and instead place our attention on enduring long-term performance, as the improvement in investment performance during this fiscal year serves as a significant reminder of this.

"The general perspective indicates that economic growth will remain sluggish, investment markets will continue to be unstable, and there will be moderate returns in the coming years. This will be advantageous for patient investors such as AustralianSuper, who have the ability to invest over the long-term economic cycle," he mentioned.

Ian Patrick, Chief Investment Officer of the Australian Retirement Trust, shared a comparable viewpoint, stating that the fund's proactive and strong strategy towards valuations will serve as a launching pad for upcoming achievements.

Mr. Patrick emphasized the significance of keeping in mind that superannuation is a venture centered on the long-term. He pointed out that the Super Savings Balanced option offered by the Australian Retirement Trust has generated an 8.4 percent return over a span of 10 years, up until the 30th of June 2023.

"Our team of investment professionals possesses exceptional knowledge and extensive background, enabling us to provide our members with consistent and competitive investment profits in the long run."