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Cbus to launch new investment options

The $67 billion super fund for the building and construction industries will launch new investment options as it remains focussed on growing to $150 billion.

Cbus' existing menu of five investment options will grow to 11 with the addition of a new Growth Plus option, a low cost Indexed Diversified option, as well as options for Overseas Shares, Australian Shares, Property and Diversified Fixed Interest.

The new options are all due to be launched mid-February.

Cbus chief investment officer Kristian Fok said the fund is launching the new options with the possibility of future mergers in mind, as well as corporate superannuation markets.

"Our default Growth MySuper option is a top quartile product, and we continue to view it as a superior product designed to suit most members," Fok said.

"We do see that a market, particularly in the corporate space, is there for a wider range of choice options.

"That's why we have spent the last 12 months carefully constructing and testing our new menu of options for members."

He explained the new Growth Plus pre-mixed option will sit between the High Growth investment option and the Growth MySuper investment option in terms of its risk and return profile.

"Growth Plus may suit members seeking higher returns over the long term and can ride out short term fluctuations," For said.

"While the option has a larger allocation to growth assets compared to our default option, and thus might suit members with a higher risk profile, it is still broadly diversified across asset classes and underlying strategies."

Members will also be able to access a low-cost Indexed Diversified option through Cbus for the first time.

The fund said it remains committed to active management, but the introduction of the indexed option is a response to growing demand in the market for very low-cost passive products. Low cost indexed options have proven very popular for fellow industry funds Hostplus and AustralianSuper.

"The recent volatility that we have seen in markets through COVID-19 highlights that index investing is not without risk," Fok said.

"We view the risk profile of this option as sitting at the riskier end of our current suite, so obviously it is not for everyone."

Read more: CbusKristian Fok