Cbus’ default Growth (MySuper) investment option generated returns of 10.77 per cent in calendar year 2024.
Its second-largest option, the High Growth investment option, returned 13.78 per cent for the same period.
According to the fund, based on the returns of its default option, Cbus remains one of the top five best-performing funds in both the 10 and 20 years to 31 December 2024, delivering 7.83 per cent and 7.53 per cent per annum, respectively.
On the back of the results, Cbus’ member assets have now also surpassed $100 billion, it said on Tuesday.
Chief investment officer Brett Chatfield said that reaching the $100 billion mark represents a major milestone for the fund.
“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,” Chatfield said.
According to the CIO, investment returns over the calendar year were driven by local and international sharemarkets, which have both delivered double-digit returns.
“As well as solid contributions from global credit and infrastructure investments that both delivered high single digit returns over the year,” he said.
Looking ahead, 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,” he said.
“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.”
Speaking on the US, Chatfield said that Donald Trump’s policy agenda will likely impact the economy and markets, with the Republican sweep of Congress making the new President’s job easier.
And while much of Trump’s agenda is well known, such as tariffs, tax cuts, deregulation, and reduced migration, the CIO underscored that the extent to which these policies will be enacted remains to be seen.
“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,” he said.
“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.”
Turning to asset picks for the year ahead, Chatfield said that infrastructure is expected to remain strong in 2025 with a positive return outlook, coupled with significant demand globally for digital assets, including data centres, and assets aligned with the energy transition.
Activity levels concerning transport assets also remain high.
As such, he said a key focus for Cbus will be to continue to deploy in a “discerning manner”.
“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,” Chatfield said.
“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.”
