Cbus looks to turn page with $100b FUM but old questions remain

Big construction industry superannuation fund, Cbus has looked to turn the page on the controversies of 2024 by pointing to the fact that strong investment returns have seen its funds under management grow to $100 billion.

But the Federal Opposition appears determined to ensure Cbus remains in the headlines.

The news of the growth in FUM comes as Federal Opposition awaits answers from the Australian Prudential Regulation Authority (APRA) to questions around governance and the fund committing $500 million to the Housing Australia Future Fund (HAFF).

The question, asked by NSW Liberal Senator, Andrew Bragg, was put to APRA during Senate Estimates in November last year and remains unanswered.

Cbus announced on Monday that its default Growth (MySuper) investment option – in which the majority of members are invested – generated returns of 10.77% for 2024. The Fund’s second largest option, the High Growth investment option, returned 13.78% for the year.

The fund noted that, for its default option, Cbus remains one of the top 5 best performing funds over the 10 and 20 years to 31 December 2024i with returns of 7.83% p.a. and 7.53% p.a. over 10 and 20 years, respectively.

The Cbus announcement quoted the fund’s chief investment officer, Brett Chatfield as stating that the $100 billion milestone was “a huge recognition of the longevity and trust that members have put in Cbus over its 40-year history”.

“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,” the statement said.

Bragg’s question referenced a statement by Cbus chief executive, Kristian Fok that he was not involved in an interaction which saw the fund’s chair and former Labor Treasurer, Wayne Swan, commit $500 million to the HAFF.

“I’m wondering from a governance point of view whether you would expect that the chief executive would be involved in committing members’ money to major projects or to major investments?” Bragg asked

He also asked whether APRA could take action against a chief executive or whether APRA only had jurisdiction over fund directors.