Cbus, Rest deliver 'strong' returns amid heightened volatility

Cbus and Rest have reported their results for the financial year ending June 30, sharing common themes in success from both domestic and global investments.

Cbus Growth MySuper investment option returned 10.29% throughout the period. Its High Growth investment option returned 11.80%, while the Index Diversified investment option returned 11.68%.

Early indications show that Cbus Super will likely remain one of the top five performing super funds over 10-, 15- and 20-year periods, the fund said.

Its default option has achieved an average annual return over 10 years of 7.75%.

"As the events of FY25 have demonstrated, in your accumulation phase it's about 'time in' the market rather than 'timing the market'. Even members nearing retirement in April, who stuck with their long-term goals, have ended the financial year with a solid result," Cbus Super chief investment officer Leigh Gavin said.

He noted that the reduced exposure to the US has benefited members.

"Following Liberation Day, we were looking at returns of 1.20% for the financial year-to-date," Gavin said.

"Despite short-term risks, we remain optimistic about the US as a long-term investment destination.

"Investing in the US is more challenging now, but it's still the world's most innovative economy, with some of the world's best companies and an unmatched ability to turn GDP growth into earnings growth, which is ultimately what drives members' returns."

He added that equities both locally and globally have performed well but stressed US policy will continue to be unpredictable.

"We have also seen strong returns in infrastructure and private credit, as well as the commencement of a rebound in property," Gavin continued.

"US tariff policy and global instability continue to be major themes for investors. The range of possible returns in the US has never been wider. That doesn't necessarily mean lower returns, but it does likely mean a wider range of plausible outcomes."

Meanwhile, despite stronger returns across its other options, Rest MySuper default option, Growth, failed to crack through the double-digit mark, returning 9.85% for FY25.

Other options such as the Overseas Shares - Indexed returned 16.39% and Sustainable Growth returned 14.93%, with Australian Shares - Indexed, Balanced - Indexed and High Growth also delivered double-digit returns.

The fund said the listed shares were "positive drivers" and those with a higher allocation maximised the benefits.

Rest interim co-chief investment officer Simon Esposito highlighted unique characteristics in achieving its returns.

"Many of Rest's longstanding investments in high-quality real assets have performed well this year, such as our investments in the energy infrastructure sector, including renewables," Esposito said.

"This very long investment horizon allows us to take advantage of the benefits of real assets, and harness future-focused investment opportunities for our members.

"Our diversified and long-term approach helps us ride out market volatility with well balanced and resilient portfolios."

Meanwhile, Kiran Singh, co-chief investment officer, said: "The dominant US technology stocks continued their surge through to mid-March, before pulling back with the broader market following the US government's tariff announcements."

"The announcements caused heightened volatility, especially across global equity and bond markets.

"Despite this, both global and local markets recovered strongly, regaining ground and ultimately reaching all-time highs as conditions remained favourable for growth, particularly in the US."

He also added local banks have outperformed in an improving economic condition, which have contributed to the positive returns.